Many small to medium-sized businesses (SMEs) are expecting a "double-dip" in the recession, which will prevent them from taking on IT contractors.

A new survey conducted by Aviva found that a third of the 500 SMEs polled felt that there was an impending "double-dip" in the recession, with 60 per cent feeling 2010 would, at the very least, "remain difficult".

The recovery officially started at the end of 2009, but many firms are still waiting to feel the effects, according to Aviva's commercial product manager David Bruce.

However, staffing levels appear to be showing positive signs, with the number of firms reducing the size of their temporary workforce falling from 17 per cent of those polled in September 2009 to just six per cent in the most recent survey.

Mr Bruce said: "Small business owners remain resolute and resourceful, but they continue to need support and advice.

"Many will no doubt be looking for further clarity on the key [election] pledges that will have a tangible effect on their bottom line."

Jennifer Gilchrist at Scottish Provident said that the rise in UK unemployment to 2.5 million people is a clear sign that the country is still struggling with economic instability.