Fresh evidence that the economic downturn is hitting jobs has emerged with new research showing a sharp drop in the demand for staff.
A study by the Recruitment & Employment Confederation (REC) showed "marked declines" in the appointment of permanent and temporary workers.
Total demand for staff fell at the sharpest rate since the confederation started its survey 11 years ago, with the only jobs growth reported in the nursing, medical and care sectors.
Pay levels remained "broadly static" last month as a result of the effect of the credit crunch, according to the survey of 400 recruitment and employment consultancies.
Kevin Green, chief executive of the REC, said: "The rapidly worsening economic outlook is now really starting to bite in the jobs market with temporary and permanent appointments dropping rapidly.
"With demand for workers declining at its fastest pace since October 2001, it is essential that the Government ensures that new measures do not exacerbate the trend."
Alan Nolan, director at KPMG, which helped with the research, added: "The impact of the banking crisis has caused the UK jobs market to deteriorate in such a manner not seen since September 2001.
"Employers are clearly feeling the effects, with redundancy programmes at the centre of all cost reduction strategies and by refusing to invest in the skills available in an ever increasing labour pool.
"Continuing pressure on both permanent and temporary placements may also see a radical overhaul of the manner in which the UK recruitment industry operates.
"This may involve further consolidation, strategic collaboration between agencies and maximum automation of process, as the industry seeks to ride out the storm."
