Staffing demands at firms fell at the fastest rate in more than a decade in February and pay also fell at a record rate as firms cut costs, according to the Recruitment and Employment Confederation (REC)/KPMG Report on Jobs.

Vacancy numbers declined at their fastest rate since the survey began in October 1997, with an index reading of 27.6 down from 27.7 in January.

Kevin Green, chief executive at the REC, said: “It is clear that we have not yet hit the bottom of the jobs market.”

However, Neil Wilson, managing director at Badenoch & Clark, urges employers and employees to look beyond the raw figures: “If the business community only looks at the raw numbers, it can be easy to paint a desperate picture of the current job market. The bigger picture tells a different story though. Yes, the economic downturn has led to redundancies, but it’s also led to a need for quality people to help organisations weather the storm.

“Times aredefinitely more competitive, but taken at face value, the raw employment figures paint an impossible picture for many candidates. The reality is quite different - quality candidates are finding roles quickly and there’s little indication of a future let up in demand.”