Temporary workers are being dismissed as small businesses look to cut costs, according to research by KPMG.

The number of temporary workers has increased in recent years as firms looked to become more flexible, but in the current climate their jobs are more vulnerable than permanent employees.

The survey found that demand for temporary staff in the UK has fallen to its lowest levels since 1997.

"The worst is probably yet to come and many employers won't have any choice other than making large-scale redundancies," said Mike Stevens, a partner at KPMG