Vacancies slashed but experts still back training for keeping firms in business.
The number of jobs available and positions filled has fallen to its lowest level for 11 years, according to a report.
Permanent and temporary staff appointments are at their weakest since 1997, when the survey was first done.
It was compiled by the Recruitment and Employment Confederation (REC) and financial services firm KPMG.
Mike Stevens, KPMG's head of business services, said job losses would affect most business sectors.
"As UK companies are increasingly under pressure and economic conditions are getting worse, many employers won't have any choice than making large-scale redundancies," he said.
However, new research from IMC Learning reveals almost nine out of ten HR professionals believe good staff training can help businesses weather national economic problems.
Despite this, 57 per cent agree staff training is one of the first budgets to be cut during bad times.
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