The growth rate in the number of permanent hires in June dramatically hit its lowest level since August 2009, according to the latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs.
Placements which were on the rise had also fallen to an eight-month low, while demand for both permanent and temporary staff also slowed.
The availability of both permanent and contract staff rose in June, contributing to a further weakening of pay growth, with only marginal inflation reported in both sectors.
Kevin Green, chief executive of the REC, said that the UK jobs market despite jobs growth in permanent placements falling to a 22-month low remained resilient.
“Looking ahead, we are unlikely to see a dramatic upswing in employment until the middle of 2012. However, the slow and steady increase in private sector hiring should mean that workers leaving the public sector have possible job outlets.”
Demand for permanent recruits came from the engineering and construction sector, although IT staff, executive and professional workers and those with accountancy and financial skills were also highly hunted.
Permanent nursing care remained flat compared to May, whilst the demand for blue-collar workers saw a decline.
The temporary side had a similar outcome, with high demand for engineering and construction, IT, and hotel and catering professionals.
Bernard Brown, partner and head of business services at KPMG, said: “Employers across all sectors are very cautious about hiring new staff and a quick job market recovery in the UK now looks increasingly uncertain.”