Hiring activity in the financial services sector is highest in NSW and will improve across the country in the next year amid renewed business confidence, according to recruiter Michael Page.

The employment outlook has improved, especially in Sydney, where most financial institutions such as banks and insurers are headquartered, the group’s Salary & Employment Forecast says.

“Permanent headcount is expected to grow in all markets over the coming 12 months.”

Hiring activity is strongest in wealth management, super, business banking and risk management.

Positions in high demand include those in business banking and financial planning and advice.

“Demand is expected to remain high for these roles over the next 12 months,” the report says. “There is an increased demand and upturn in super and banking activity due to Australia’s legislation and commitment to build personal wealth through super.”

About 39% of financial services employers expect to raise average salaries by 3-4% over the next year, while 40% will increase pay by 2-3%.

Salary rises have mostly been in the 3-5% range in the past year. They are higher now than last year and are expected to increase further in the next year.

Two types of insurance are commonly offered with remuneration packages: 44% of employers offer income protection, and 20% offer healthcare or health insurance.

Across all sectors, 31% of employers plan to increase headcount over the next year.