Demand for workers in British manufacturing reached its lowest level in at least two decades, adding to a picture of a sector struggling to survive a deepening recession.

The Purchasing Managers’ Institute index on Monday showed the employment sub-component hitting 33.2, its lowest level since the survey began in January 1992. “Rapid falls in employment show firms are slashing headcount in a bid to survive this deep recession,” said Hetal Mehta, senior economic advisor to the Ernst & Young Item Club.