Increasing numbers of accountancy and finance contractors are moving into the public sector, according to research by professional umbrella employment provider Giant group.

Giant's survey shows a 12% rise in contractors working in the public sector since 2011 and a 5% increase since the beginning of this year.

The firm calculates the proportion of accountancy contractors working in the public sector now stands at 51%, and says 44% of finance professionals expect this to increase further over the next year.

However, use of contractors varies between sectors, with percentages of finance contractors in investment banking and asset management decreasing by 11% since 2011 to 5% currently.

Matthew Brown, managing director of Giant said: 'We're generally seeing a flattening of recruitment in the sector as the banks are forced to be much stricter when it comes to taking on new hires, and little change is predicted over the coming 12 months.'