Recruiters have only felt the tip of the iceberg in terms of results, according to a report from investment banking firm John East & Partners.

The report predicts ‘much worse to come’ for recruiter results as share prices have been weak for nearly two years, having fallen by 75% since the July 2007 peak.

It adds that the current worldwide recessionary conditions are unique, with UK GDP falling by 1.9% in Q1 2009 and forecast to fall by between 4% and 5% for the year as a whole.

And analyst Ian Jermin believes that based upon previous economic cycles the UK recruitment market will weaken in 2009. He adds that past cycles would suggest that, although recessionary conditions may begin to ease in Q4 2009 or Q1 2010, any significant pickup in demand for staff will be modest and slow.