"Market conditions became noticeably more difficult during the fourth quarter with many jobs being cancelled or put on hold," said Steve Ingham, Michael Page chief executive. "The impact of the financial crisis is now evident in virtually every market and discipline in which we operate, albeit to varying degrees and with different markets and disciplines at different points in the downturn."

"We delivered a resilient performance in the second quarter," said Hays chief executive Alistair Cox, "in the context of an increasingly difficult economic environment. Overall, Group net fees fell by six per cent as market conditions deteriorated in most countries we operate."

did report though that is public sector business was performing strongly and represented 30 per cent of its fees.

Both companies report that demand for temporary staff is currently strong and put this down to employers being "nervous" about signing long-term commitments. Michael Page reported temporary staffing profits grew by 13 per cent in the fourth quarter of 2008.

With fees falling, Hays and Michael Page have increased the number of people looking for work by making redundancies. Michael Page has reduced its staff by 509 individuals and Hays by 500.