In the latest report on jobs by the Recruitment and Employment Confederation (REC), HR staff signalled that May starting salaries for people placed in permanent jobs fell at a "sharp pace".
At the same time average hourly pay for temps also fell last month.
Meanwhile, lower permanent and temporary staff appointments were also recorded during May. However, it was found the rates of decline eased to the weakest in ten and eight months respectively.
Kevin Green, chief executive of the REC, said the report shows "there are some signs of recovery".
"For example, 60 per cent of recruiters reported either a stable or increased demand for temporary staff in May," he added.
Meanwhile, the Institute of Employment Rights (IER) has urged employers to think about the long-term effects of cutting the minimum wage before they campaign for it.
Carolyn Jones, director of the IER, said such a move could have far-reaching economic implications, particular for private sector jobs.
