"[The industry is] absolutely shocking and has slowed down a lot in the last couple of months - and it has done so extremely quickly," said Markham.

The construction, mining and pipeline industries which were predicted to help Australia ward off the global recession are now being constricted by the economic situation and, said Markham, the Government is not doing a lot to stop it.

"This $42 billion stimulus package is a joke," he said. "It's not going to sustain jobs and - although it would be a more long-term strategy - it should be pumped into things like infrastructure."

According to another labour hire company, Labour Power Recruitment Services, the situation does not signal the end for labour hire companies, but means moving into different areas of business.

"We are definitely growing, but it's in different areas now, as opposed to construction, such as recycling, production and manufacturing," said HR manager David Chernich.

- Sarah O'Carroll