The number of firms in the recruitment and business services sector going into administration in the third quarter of the year increased by 266% on the same period last year, new research reveals.

The figures, from business advisory firm Deloitte, also show that there was a 32% increase in firms entering administration on the previous quarter.

The total volume of administration orders in England and Wales rose by 12% compared with second quarter figures, and by 9% on the same period last year.

Lee Manning, reorganisation services partner at Deloitte, said: “It comes as no surprise that the volume of administrations is increasing. The economic situation is testing even the strongest of businesses, let alone those with weaker balance sheets. As companies increasingly feel the impact of the wider downturn, we are seeing mounting levels of corporate stress, particularly within the recruitment and business services sector.”