THE long slide in the number of jobs in the financial service sector

as banks, building societies and others have sought to raise

productivity has ended. Employment in the sector rose in the second

quarter of 1994 for the first time in four years, according to the

latest CBI/Coopers & Lybrand survey on financial services, and the trend

is expected to continue in the current quarter.

However, the upturn is patchy, with building societies and general

insurers seeing a further fall, while securities traders, insurance

brokers and venture capital firms are seeing rises in numbers employed.

Sudhir Junankar of the CBI commented: ''The rise in employment for the

first time since September 1990 coupled with expectations of a further

business growth over the next three months are encouraging signs that

the recovery is perhaps becoming more durable.''

Stronger growth is expected in the next three months, though at not

quite the pace predicted in the previous two surveys. Business is now at

its best level since June 1990 but is still considered below normal.

Only life insurers and securities traders reported a fall.

General optimism rose for the seventh successive quarter, though

almost as many sectors reported a fall in confidence as an increase.

The improvement in profitability slowed after four quarters, but is

expected to pick up again in the third quarter.