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In addition, the number of job vacancies increased at the slowest rate in five years, said the report by the Recruitment and Employment Confederation (REC)/KPMG report.
Kevin green, chief executive of the REC, said the credit crunch was one of the main factors behind the decline in job growth.
"An increasing number of companies are using temps as a way of riding the storm," he said.
Temporary job positions are continuing to grow and pay has increased, possibly as a result of growing pay demands in response to rising inflation, reports Reuters.
According to the Norwich Evening News, many people embrace temporary working as a way of paying the bills between permanent jobs.
Sally Cleary, operations manager at Cooper Lomaz Recruitment, told the newspaper: "Changes in the economy mean we have seen a vast increase in demand for temporary workers since last November."
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