Online recruitment activity reached a 20-month low in December, according to the Monster Employment Index.

The Index decreased by 11 points in December, with demand for HR-related positions dropping to an Index low, while the financial sector fell to its lowest level since January 2007.

Demand also slumped across all occupational groups except skilled agricultural and fishery workers with plant and machine operators, and assemblers being the hardest hit.

Recruitment of education workers rose, partly due to demand for training from unemployed workers while modest increases were also noted in the legal and R&D sectors.

Online recruitment activity declined across all regions, with East Anglia recording the biggest annual fall.

Hugo Sellert, head of economic research, Monster Worldwide, says:  “The sharp decline in online job demand in the final months of 2008 confirms that the UK labour market has fallen into recession.

“In addition, the plummet in demand for HR professionals signals that companies are likely to scale back further on hiring well into next year. The jobs market is unlikely to improve before businesses regain confidence in the struggling economy. Education is one of the few bright areas, with schools and colleges significantly stepping up recruiting efforts to secure staff for 2009.”