The Chartered Institute of Personnel and Development (CIPD) has said it expects a "slow, painful contraction" of the jobs market as Europe again faces economic turmoil.
It predicted that businesses will delay the recruitment of more staff in the medium term as they adopt a wait and see approach to how the eurozone will navigate its debt problems.
Although company owners said they do not plan to make as many redundancies, they are also not hiring to the same extent, while the public sector still faces jobs cuts.
CIPD public policy adviser Gerwyn Davies said further rises in unemployment seem inevitable.
"There is no immediate sign of UK labour market conditions improving in the short or medium term," he added.
This comes before official employment figures to be released on Wednesday are expected to show record numbers of 16 to 24-year-olds out of work.
Earlier this month, the Office for National Statistics revealed that 647,000 people left their jobs in the second quarter of 2011, down from 1.17 million in 1998.
The organisation said Britons are choosing to stay with their current employer, rather than face looking for new work in the current economic climate when so many people are already unemployed.
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