The extent to which the economic downturn has spread its tentacles into almost every area of the labour market was graphically illustrated by government plans to spend £40m to help redundant professionals and executives find work.

The scheme announced last week by James Purnell, work and pensions secretary, will aid up to 350,000 people without recent experience of looking for work by giving them special help at Jobcentres. Among them may be a sprinkling of City lawyers and legal staff who have found themselves suffering in the recession.