Demand for staff is continuing to fall and employee pay is declining at the fastest pace in over ten years, according to a survey by consultants KPMG and the Recruitment and Employment Confederation (REC).

Job opportunities last month reached their lowest levels since the survey began in 2007, and the rate of pay for temporary workers and those starting new jobs has plummeted at the quickest rate for over ten years.

"These figures continue to cause real concern and confirm that the labour market is continuing to contract," said Kevin Green, chief executive of REC.