Recruitment in the HR sector has dropped 32% in September 2008 compared with the same month last year.

According to the Monster Employment Index, hiring activity among staffing companies is easing due to a lack of labour demand in all industries. The dip reflects decreased hiring of professionals and associates.

Wales saw the steepest decline in HR hiring activity in the UK but demand in Scotland fell for the sixth consecutive month.

Hugo Sellert, head of economic research at Monster Worldwide, said: "The latest index findings suggest overall job losses are likely to intensify as the troubled financial and housing industries continue to drag down the wider UK economy. However, while the private sector is growing ever more cautious about adding staff, once again the public sector is showing it is less affected by the struggling economy."