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According to a survey conducted by the Chartered Institute of Personnel and Development, the sector will shrink further over the next quarter, which may result in a growing number of people looking for ways to earn extra money.
The study, which involved the questioning of 500 employers, found that while private firms will continue to be the worst hit, public sector recruitment - especially in local government - will also fall.
Chief economist at the body John Philpott noted that the current public sector figures will "look like a walk in the park as the drive to balance the books gets under way in earnest".
However, he was more optimistic about the future of the private sector stating that net intentions will begin to improve "in the near future".
Last month, the Office for National Statistics revealed that there are currently approximately 2.1 million unemployed people in the UK, with the figure having risen by 177,000 between December 2008 and February of this year.
