The Centre for Economic and Business Research estimates that business service will decline by 169,000 in 2009 from 2008 levels and a further 106,000 will go in 2010.
It says that those sectors that rely on the investment cycle, advertising, property market and research and development will be worst hit.
Jobs in the real estate sector are set to fall by over 45,000 up to 2010, 18% below their peak in 2007, as the lack of activity in the housing market persists through 2009.
Jörg Radeke, one of the report’s authors of the cebr report, says: “The business services sector is set to have its biggest shake-out for decades.
“With discretionary budgets slashed, investment collapsing and the housing market remaining in the doldrums, it is difficult to see where any growth is going to come from.”