Rising confidence in the financial services sector is accelerating the hiring plans of more than 4000 employers over the coming three months.

More than half of those surveyed by recruiter Hudson for its quarterly employment expectations report say they will increase permanent head counts between now and September in another sign of bullishness returning to the finance and insurance sectors.

Hays and recruiter Manpower Employment agree the balance of power is swinging back to employers, with the latter detailing strong demand for new recruits in the finance, insurance and real estate sectors last month.

Hays Accounting and Finance National Practice Director Dean Davidson says employer sentiment across financial and insurance companies is up 14.3 percentage points since the previous quarter – the sharpest increase of any sector.

“The strong rebound in employer confidence correlates with a number of institutions ramping up large-scale projects,” he said.

“The significant overall improvement in employer sentiment in financial services lends weight to the argument that the sector has truly emerged from the economic downturn.

“There is no doubt that we are beginning to see a return to the severe skills shortages of 2007 in many areas.”

Mr Davidson describes competition between employers in the recruitment pool as “fierce”.

“Those employers that also put significant emphasis on forward-looking recruitment strategies will be best placed to deliver on growth opportunities and increase their competitiveness as market conditions continue to improve.”