Investors remain cautious, but the job market seems to be picking up in financial services, especially in areas that cater to affluent individual investors, government data and industry observers suggest.

In measuring the prospects for jobs in financial services, “clearly a lot has changed since 2008, but we’ve seen increasing recruiting activity especially over the past few years.” says Blake Gore, senior associate director for the Career Management Center at Vanderbilt’s Owen Graduate School of Management.

Overall in Tennessee, the number of broker-dealers declined from 1,595 in 2007 to 1,528 as of Jan. 1, 2012, according to data from the Tennessee Department of Commerce and Insurance.

That number reached its low point in 2010, with 1,525 broker-dealers, and has hovered at that number ever since. For state-registered investment advisers, however, the number has gradually risen from 166 in 2007 to 199 as of Jan. 1, 2012.

Many students in Owen’s MBA finance programs tend to gravitate toward private wealth management positions, he says. These individually oriented niches have held their own in the job market.

Rhome Aur of First Tennessee sees employment of recent college graduates and MBAs generally holding steady as they replace those leaving the company. Growth in employment will come mostly from hiring experienced, skilled personal bankers, he says.

“Most people that require our services are baby boomers in retirement or reaching retirement age,” he says. Because there’s a global economy these days, investors “now have to worry about the whole world. They’re more reluctant to take risks,” Aur says.

First Tennessee offers private banking services to those with at least $500,000 in investible or liquid assets, and also has advisers to work with the “mass customer,” he says.

Banks are looking to grow, Aur adds, and First Tennessee is “looking to hire good advisers from other firms. We also are looking for young people who want to get in the business,” generally those with a securities license and a bachelor’s or MBA degree. The newer advisers will replace financial advisers leaving the firm, he says, with the growth in employment coming from hiring experienced advisers.

Vanderbilt MBA students’ interest in private wealth management has recovered since the worst of the recession in 2008, Gore says.

“It’s one of our most popular tracks when it comes to financial services,” he says, adding he doesn’t know if the Vanderbilt MBA students’ track record in landing private wealth management jobs is similar to broader trends.

The highest level of financial advising, private wealth management, involves managing multigenerational wealth, he says. It’s a complex operation in which financial advisers will manage larger portfolios with the aid of a highly skilled team of tax lawyers, accountants, private bankers and other professionals.

State employment data show growth in investment advising. Personal financial advisers rank No. 19 on Tennessee Department of Labor and Economic Development’s list of the top 25 fastest-growing occupations, as measured by the projected percentage change of jobs between 2008 and 2018.

Statewide employment of personal financial advisers – just one segment of the financial services industry – is projected to rise from 1,700 to 2,210 in 2018. Statewide, 163 job openings for personal financial advisers were advertised online as of June 17, according to information on the department’s Jobs4TN website, which uses data from the U.S. Department of Labor.

The broader job category of financial manager was listed on the state Labor Department’s list of hot jobs for Davidson, Rutherford, Wilson and Trousdale counties, using projections forward to 2018. An estimated 105 jobs are projected to become available in these four counties.

Of the financial services industry overall, Gore says he saw abundant consolidation after 2008, “but industry growth has appeared to pick up a bit.”

There was comparatively more tightening in the sales and trading job market, he says, partly because computer programs can perform many of the functions humans used to and partly due to increased regulations restricting proprietary trading.

He speculates there was less contraction with private wealth management partly because of the personal nature of the service.

Personal wealth managers help create a “highly individualized strategy” for clients, Gore says.

“Not everyone with $30 million wants to invest it the same way,” he adds. “Each of these investors has unique goals and values and these are best uncovered by working with an experienced professional. There is a very human side to navigating these highly complex financial situations.”