The jobs outlook is worsening as pain spreads to the public sector more quickly than private sector employment is recovering, according to a survey of more than 700 employers.

The report by the Chartered Institute of Personnel and Development and KPMG, the professional services firm, suggests the recent levelling-off of un-employment is merely a "pause for breath" before public sector job cuts kick in.

This quarter is set to be more difficult than last for the jobs market, the study says, with almost one-third of public sector employers planning to reduce their headcounts.