Record decline in jobs leads to lower staff wages

The declining UK jobs market has led to staff being forced to accept lower wages, according to a survey by recruitment consultants KPMG and the Recruitment and Employment Confederation (REC).

December 2008 was the third consecutive month that salaries decreased, and also saw the number of staff in permanent or temporary work fall to the lowest levels seen since the survey began in 1997.

Rising unemployment and the declining job market mean that any small business owner looking to recruit new workers is in a strong position regarding choice of staff and salary negotiations.

"These figures are deeply worrying and show that the contraction in the labour market is rapidly accelerating," said REC chief executive Kevin Green.

The latest official figures showed there are 1.86m people out of work in the UK.