2 Apr 2012

Financial services drive rising employment in Q1

A survey by PwC and employers’ group the CBI has found that business volumes in Q1 2012 grew for the eighth consecutive quarter

The CBI/ PwC survey said that the rising employment was driven by an unexpected increase in the number of new staff being hired in the financial sector.

The report found a balance of 19% of firms hired new staff in the first three months of the year.

Ian McCafferty, the CBI's chief economic adviser, said, "Financial services sales volumes and income continued to rise this quarter, putting the sector's recovery on a firmer footing.”

"Optimism levels and business investment intentions have also improved, in contrast to last quarter as some of the worst risks around the euro area crisis have eased. The unexpected rise in employment is a further encouraging sign for the sector. But with the current level of business regarded as below normal, conditions still remain challenging for financial firms."

A report from Deloitte today also reported signs of optimism in the business community, finding that fewer CFOs are expecting the UK to fall back into recession that in the previous quarterly survey.


Helen Roxburgh