"We're not back to pre-Lehman Brothers levels but we're three quarters of the way there."

That was the verdict of Alistair Cox, chief executive of City headhunter Hays, on the recruitment industry today as he said his firm had "turned the corner".

The bullish comments came despite Hays posting an 80% plunge in pre-tax profit to £29.7 million for the year to June.

Cox played down the figures, blaming them on a difficult period last year.

"Since Christmas we've seen things pick up massively," he said.

"It started in Asia and then become more broad based.

"In the UK, growth is being led by the banks, accountancy firms and pharmaceuticals industry.

"A year ago, people were sitting on their hands and staying put, but now they are confident enough to change jobs.

"Clients' confidence means they are replacing leavers, whilst banks are upping their headcounts, hiring more people in front-office services, things like sales and mortgage advisers.

"Last year, firms were focused only on cost cutting.

"Now they are putting in teams to go out there and create business," he added.

Hays admitted it will be hit by the Government spending cuts as it makes about 8% of its fees from the public sector.