Firms in the UK financial services sector cut back the number of permanent jobs advertised in January and February in a cautious response to the credit crunch. However, according to Joslin Rowe, despite being more reluctant about committing to increases in the permanent headcount, firms are still busy.

As a consequence, there was a sharp increase in temporary job vacancies in February (42.6% from January) as firms have started a massive push for contract and contingent staff to fill short-term gaps in the workforce.

Traditionally, the UK financial services jobs market sees a sharp rise in permanent job vacancies in January and February each year as firms look to bolster their workforces, and to reflect greater candidate activity in the new year. In 2008 however, permanent job vacancies have not risen as steeply as usual and temporary positions have surged upwards instead.

Nabila Sadiq, managing director of Joslin Rowe Temporaries, explains: "The smaller rise in permanent job vacancies this January and February is a clear sign employers have taken a more cautious approach following recent market turmoil. However, in the middle office at least, there hasn’t been the sort of slowdown anticipated.  The work’s there to be done and someone has to do it - firms are finding they need staff levels consistent with previous years and are turning to the temporary market to cover the shortfall."