The number of people who started a new, permanent job in July fell at the fastest rate since May 2009 following the Brexit result, according to a new survey.
The IHS Markit report showed that recruitment fell for a second month, with recruitment firms highlighting uncertainty after the EU referendum vote as the primary reason.
The survey comes just a day after the governor of the Bank of England, Mark Carney, warned that around 250,000 jobs would be lost over the next two years as a result of Brexit.
The unemployment rate hit 4.9% between March and May, the lowest it has been since 2005, following a sustained period of decline over the past two years. But Mr Carney expects unemployment to rise to 5.5% as the UK deals with the economic fallout of the EU referendum.
The report also suggested that businesses are turning to short-term staff, instead.
Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), which sponsors the survey, said: "The UK jobs market suffered a dramatic freefall in July, with permanent hiring dropping to levels not seen since the recession of 2009."
Over a third (38%) of recruiters said they had placed fewer people in permanent position in July, up from 32% in June.
However, salaries for permanent and temporary staff increased.
Mr Green said: "Demand for staff remains strong with vacancies continuing to rise, but the sharp fall in placements suggests that businesses are highly cautious about committing to new hires.
"Economic turbulence following the vote to leave the EU is undoubtedly the root cause."