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The job market contracted at a record rate in November as companies freezed recruitment amid worsening economic conditions.

The Recruitment and Employment Confederation (REC) and KPMG report on jobs found permanent placements declined for an eighth consecutive month in November, with the rate of contraction accelerating to a new survey record.

Approximately 59 per cent of respondents indicated a reduction in appointments, compared with just 14 per cent that reported a rise.

Similarly, temporary staff billings fell at the sharpest rate in the series' history, while there was a further marked drop in vacancy levels. Only the nursing, medical and care sector avoided the downturn.

Recording a series low of 32.7 in November, down from 38.1 in October, the report on jobs vacancies index pointed to a rapid rate of decline in overall demand for staff.

In addition, rates of pay for both permanent and temporary staff declined for the second month running in November, as higher volumes of job seekers diluted candidates' bargaining power.

Kevin Green, chief executive of the REC, said: "These figures confirm that the jobs market has hit the wall.

"While public sector, contracting and interim are faring slightly better, it's now clear the government must not remove the VAT concession on temporary work planned for April as this will destroy jobs when we can least afford it."

Mike Stevens, partner and head of business services at KPMG, said: "This latest survey leaves no doubt that the UK jobs market is now heading downhill at breakneck speed.

"The drop in permanent and temporary placements is far steeper and deeper than it has ever been in the survey's 11-year history."