SThree PLC, a London-based staffing firm, said today demand for its service fell in its fiscal first quarter that ended March 1. The company reported a 9.8% year-over-year decline in active contractors to 5,036. In addition, the number of permanent placements made in the quarter fell 24.5% year-over-year to 1,728.

Permanent placement in the United Kingdom fell 47.5% year-over-year.

"Given the extremely weak economic backdrop, we anticipated that 2009 would be an exceptionally tough year and this assumption has been borne out in the first quarter particularly in the UK where demand is very weak," said Chief Executive Russell Clements. "Our international business has fared relatively better but given the global nature of the current downturn it is inevitable that these markets have also been impacted."