Financial services firms in the UK are expected to create 26,000 new jobs in the year to June, implying that just over half of the ground lost during crisis will have been recovered, according to the latest CBI/PwC survey.
Taking into account long-run trends, the latest survey results suggest that employment in financial & insurance activities should rise to 1.16 million by the end of second quarter of 2014.
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On this basis, employment would be 56000 lower in the second quarter of 2014 than its peak in the fourth quarter of 2008, but 58,000 above the trough in the first quarter of 2010.
The report also says that business volumes grew for the second consecutive quarter, across all industry sub-sectors except for life insurance.
"However, growth was not as strong as expected, partly reflecting stable business volumes in the banking sector against expectations of robust growth," the report added.
Overall profitability in the financial service sector continued to grow, but at a more moderate pace compared with the previous quarter. Profits are expected to grow at a similar rate over the next three months, the report forecast.
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By GlobalDataMatthew Fell, CBI director for competitive markets, said: "Financial services firms are growing steadily and are optimistic about their business situation. The fact that competition is growing as a potential business constraint highlights intensifying activity in the sector.
"It’s also particularly encouraging to see that investment intentions continue to be positive across the board for the second consecutive quarter, strengthening further in some cases.
"Businesses plan to spend heavily on IT and are scrambling to find new professional staff to meet growth demands."
