The financial services sector recorded a 12% slump in recruitment activity in May, according to research commissioned by City pre-employment screening firm, Powerchex.

The research found that the total number of job offers declined 12% last month, after seven consecutive months of rises, with the decrease evident across the whole of financial services, with investment banks, hedge funds, investment managers and stockbrokerage firms all reducing their May intake of new starters by 14% to 25%, compared to the previous month.

The fall in job offers was most marked among  IT contractors working in financial services, where job offers dropped by 50%. Insurance firms were the only sector to increase their recruitment intake, by just 2%.