More than a quarter of firms are poised to lay off workers because of the economic downturn, according to a survey.

The spectre of rising unemployment has been raised by a quarterly survey of 1,200 bosses by KPMG and the Chartered Institute of Personnel Development (CIPD) which found that 27 per cent of employers are planning redundancies, up from 22 per cent in the previous quarter.

The survey revealed that only 29 per cent plan to hire staff, down from 37 per cent in the previous quarter.

It confirms fears that unemployment, which has been relatively low across Kent and Medway for the past few years, is about to rise sharply because of the downturn and credit crunch affecting most businesses.

Professional services have already been hit by the property slump - with estate agents and at least one law firm laying off staff.

Rising energy costs and falling consumer confidence have also hit job levels but job losses have yet to feed through to the official unemployment statistics.

John Philpott, CIPD chief economist, said: "The jobs market has been one of the few bright spots in the UK economy - but cracks are appearing in the face of an increasingly uncertain economic outlook.

"Even if we avoid the scale of jobs fallout suffered in previous downturns, the era of the candidate’s recruitment market is already over, with people in work becoming increasingly anxious that their P45 might soon be on its way."

KPMG chief economist Andrew Smith said: "Companies are now reacting to deteriorating market conditions. With sales slowing and input costs rising - but scope to raise prices limited by weakening demand - finances are under pressure.

"It looks as if employment costs, the main area over which businesses retain control, are taking the strain."