The CIPD/KPMG Labour Market Outlook (LMO) shows that employment prospects are weaker than at any time since 2004, when the survey began.
According to the survey, 29% of employers said they expect to increase staff levels in the third quarter of 2008 compared to 37% in the second quarter.
The report also shows that redundancies are set to increase, with 27% planning to let staff go, compared to 22% last quarter.
John Philpott, chief economist at the CIPD, said: "The jobs market has been one of the bright spots in the UK economy, but cracks are appearing in the face of an increasingly uncertain economic outlook."
He continued: "Even if we avoid the scale of jobs fallout suffered in previous downturns, the era of the candidate's recruitment market is already over, with people in work becoming increasingly anxious that their P45 might soon be on its way."
Recruitment falls while redundancy rises
The outlook is not looking rosy for the recruitment industry, according to the CIPD.
