A downturn in the labour market has been predicted in a survey by the Chartered Institute of Personnel Development (CIPD) and auditors KPMG.
More companies are expected to make staff redundant in 2008; with a fifth of those questioned stating to the firms that this could be the case.
The poll discovered that 37 per cent of businesses are intending to make cuts of ten or fewer in employee numbers this quarter.
Chief economist at KPMG Andrew Smith remarked that the survey reflects the current uncertain economic outlook.
"Although more companies report recruitment difficulties, pay expectations are broadly the same as a year ago, suggesting that wage inflation concerns are overdone," he said.
CIPD's chief economist John Philpott added: "With net recruitment activity still positive, signs of mounting employer pessimism shouldn't be read as evidence of a jobs market approaching meltdown."
Yesterday it was reported by the National Computing Centre that the IT skills shortage level has hit its highest level in a decade.
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