The number of job offers made within the financial services sector fell by 5% in October, according to a study by City pre-employment screening firm, Powerchex.

The fall in job offers follows falls of 10% in August and 4% in September. Insurance firms (down 3%), hedge funds (down 18%) and investment managers (down 22%) all cut recruitment.

Powerchex managing director Alexandra Kelly was not surprised by the October figures: “After a solid first half, we are really seeing the financial services sector tightening its belt when it comes to recruitment. Many companies over-extended themselves at the beginning of the year, and are now reducing their intake of new people, especially as government spending cuts really start to take effect.”