The number of vacancies in the City of London fell by almost two-fifths last month compared with a year ago, although the jobs market is showing signs of stabilising, according to a new report.

There were just over 3,500 vacancies on offer in February, down by 38 per cent over the year, said recruitment firm Astbury Marsden.

Some banks and City firms were keen to hire staff but line managers were finding it difficult to get approval to spend money on recruitment, said the report.

Mark Cameron, chief operating officer at Astbury Marsden, said: "Although the City is still facing very tough trading conditions, there are now clear signs that the jobs market is stabilising after a turbulent few months. The latest signs indicate a more settled City jobs market.”