The number of job vacancies has fallen to its lowest level in over a decade, a survey of recruiters has found.
A report from the Recruitment and Employment Confederation and KPMG shows the number of candidates soared in October but placements in new jobs declined to a survey record low.
As a result, wages and salaries declined for the first time in over five years.
Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said: “These are the worst figures we have seen since the report began in 1997 with both vacancies and the number of job placements falling at an increasing rate.”
Mike Stevens, partner and head of business services at KPMG, said: “This latest survey reveals a gloomy picture of the UK labour market.
“The terrible news from the equity markets and the broader economic front have led to a steep fall in the demand for permanent and temporary jobs across most sectors of the economy and the worst is probably yet to come.”
Demand for permanent staff fell across all job categories with the exception of nursing and medical care during October.
The sharpest fall in demand was for accounting and financial staff, reflecting the ongoing turmoil in the sector.
The fall in wages may reassure economists that inflation has peaked but the sharp decline in demand for staff suggests further rises in unemployment.
Currently, the unemployment rate stands at 5.7 per cent but the European Commission has predicted it will rise to over seven per cent in 2009.
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