There are increased signs of optimism in the financial services sector, according to a new survey.

The CBI/PricewaterhouseCoopers quarterly survey of financial companies reveals that an overall balance of 13% of companies in the sector are optimistic about the business situation. However, despite this the survey predicts 28,000 jobs losses in the sector during the second and third quarters.

Insurance and investment companies were particularly optimistic.

Steve Preston, managing director of accountancy and insurance recruiter Heat Recruitment, told Recruiter: “There is definitely more urgency in the market. A few months ago, we were having to be more proactive on the phones. Now clients are phoning in with more jobs, and not only one job but sometimes two, three or five jobs,” he says.

Preston says that insurance companies are looking to recruit at senior levels, which is good news for recruiters as this will lead to openings at more junior levels.

The downturn in financial services has lead to a shake-out of recruiters in the sector, with those recruiters remaining able to take advantage, he adds.

Matthew Halford, a director of Fortuna Search & Selection, told Recruiter: “Insurance clients are actively recruiting in the
market, and giving us a huge amount of optimism.” However, he adds; “Only when bottom line figures rise will we have substantial evidence that the market is finally on a course in the correct direction.”

Andrew Norton, managing director, Michael Page Financial Services, says: ““The figures from the CBI and PwC survey are interesting. In our experience, the companies that saw the effects of the downturn first are more inclined to be cautiously optimistic. Our clients that we are recruiting for are recruiting sensibly. They are approaching their recruitment campaigns with a view for the long term and getting the right skilled professional candidates in place. Unlike boom times, not many hiring managers are perusing the market for a potential hire. If there is a need, businesses will go to recruiters they trust and respect.”

Sarah-Jane Trask, Verridian’s national client manager, adds: “We have seen a slight but definite increase in business across the banking sector over the past couple of months with companies looking to recruit small numbers of very highly skilled professionals – typically those within the top 10% of the industry. Due to lower vacancy numbers and reduced attrition, companies are still being selective when recruiting and also prefer to redeploy from within their own ranks. Whilst there has been some improvement it’s still very early days with many institutions reticent to recruit new staff for obvious reasons.”