Job market shows signs of life

The poll of senior managers in London investment banks found that nearly a quarter expect to increase staff numbers in their sector in the next six months, compared to 16% who predict a decrease.

The figures are healthier than six months ago, when 41% decreased staffing levels and just 20% increased them.

Guy Hayward, head of financial services at TMP/Hudson, said: "No one's expecting a huge increase in hiring volume. But some firms who were not hiring before are now showing an interest."

The survey is more optimistic than a poll by the Confederation of British Industry (CBI) in April, which found that securities houses that planned to decrease staffing in the second quarter outnumbered those planning an increase by more than three to one. The CBI poll did find that sentiment was improving, however.

In a separate poll, TMP/Hudson found that fund managers are also becoming more bullish - 24% expect to increase staff numbers in the next six months, while 22% expect a decrease.

The firm said it spoke to about 60 investment banks and 40 fund management firms.