Demand for skilled labour has dropped to recessionary levels as businesses wind back their hiring in the face of a rapidly slowing economy.

New Australian government data released on Wednesday shows that skilled vacancies have dropped 4.8 per cent in November, making them 29.1 per cent lower than last year.

TD Securities senior strategist Joshua Williamson said, "The last time the yearly growth rate was this negative, Australia was deep in recession."

Global credit rating agency Fitch Ratings is forecasting 5.4 per cent unemployment next year compared to a current rate of 4.3 per cent.

Deputy Prime Minister Julia Gillard said protecting jobs was the government’s top priority. She said, "That's why we acted decisively with the economic security statement to stimulate the economy, to make sure that we were doing what we could to be in front of the curve, keeping the economy moving and growing."

She said the A$10.4 billion economic package was estimated to lift employment growth by around 75,000 jobs, and also commits to 56,000 new training places for jobs.