Hiring activity rose for a third consecutive month in March, according to a survey by financial recruiter Morgan McKinley.

The survey shows that the number of new job vacancies within London’s financial services sector increased by 10% compared with the previous month.

The number of financial services professionals who began looking for a new job also jumped in March, up 9% on February.

However, hiring levels fell by 57% on March last year.

Andrew Evans, managing director of Morgan McKinley, says: “During the first quarter of 2009, there has been a slight improvement in City confidence in comparison to the end of last year and this has translated into a small increase in hiring activity.

“Similarly, many of the cost saving and efficiency initiatives being implemented by financial institutions over the past three months are nearing completion.

“Therefore, employers are now more accurately able to identify where there are skills gaps in their workforce and are starting to hire again to fulfil these requirements, albeit at reduced volumes compared with 12 months ago.”