Financial services employment rises at fastest pace in a year

A survey from the Confederation of British Industry (CBI) has shown that financial services firms increased hiring in the second quarter of 2018 despite uncertainties over Brexit, with employment in the sector rising at the fastest pace in 12 months.

The study, which surveyed 100 Square Mile firms, found that 24% increased hiring in Q2 2018, while 70% are planning to increase investment compared to last year, with information technology being a main driver of investment.

Confident

The study also showed that banks, insurers and investment managers are feeling confident about their Brexit plans, with 70% saying that they will have a plan in place by the time of the UK’s exit from the EU in March next year, even if a deal cannot be reached.

The figures come as banks show signs of recovery from the financial crisis, with Britain’s banks reporting rises in their profits at the end of the last quarter.

Research set to be published by Banker magazine will also highlight the progress that banks have made, with the figures showing that British lenders saw the third-largest rise in profits across the world in 2017.

Recovering

Commenting on the CBI’s study, Chief Economist Rain Newton-Smith said: “Despite fairly subdued growth last quarter, it’s good to see financial firms stepping up hiring and investment, with digital technologies and new services seen as the best way to grow in a fiercely competitive environment.”

Banker magazine’s Editor Brian Caplen commented on the recovery of the UK’s banking sector, stating that British banking appears to be recovering from the financial crisis despite tougher regulation and Brexit.