Employment dropped most rapidly in banking and building societies, it remained unchanged in life insurance but increased "strongly" in general insurance.
Andrew Kail, UK insurance leader at PWC, said: "General insurers feel even more optimistic than they did in December and are more confident that at any point since 2005. Companies are expecting to grow across personal and commercial linkes and new customers are seen as the most promising source of growth."
But overall, the PWC and CBI report shows 34% of financial businesses were less confident about the current situation now, than they were in December 2008. As a result 40% reported a drop in headcount - the heaviest drop since 1993 when it was 41%.
A similar fall in numbers of 38% is expected over the next three months. And staff turnover has dropped for the fourth month running, showing nervousness about switching jobs and a shortage of vacancies.
The report also showed expenditure on staff training in the sector continues to fall.
Ian McCafferty, CBI chief economic adviser, said: "Conditions remain exceptionally tough in the financial services sector. Sharp drops in revenues and profitability are causing continued suffering, while business volumes remain very weak. Firms are making heavy cuts to staff numbers and investment plans to make savings and reflect weak demand."
Check out who is hiring and who is making redundancies this week.
