Law firms have seen a surge in insolvency-related work and employment advice, as tough economic conditions continue to affect clients.

Figures from law firm referral service Contact Law showed a significant rise in calls from members of the public and businesses relating to employment and insolvency.

Employment-related inquiries rose to 16,199 between 1 January and 31 July this year, a 30% increase on the same period last year. Of these, most were from people who had already been dismissed by their employer, or were about to be made redundant.

Calls relating to insolvency rose 72% during the same period compared to last year, with 548 inquiries.

Contact Law director Dan Watkins said: 'Insolvency-related legal enquiries are now, by a distance, our fastest growing area, and with the UK and global economic climate worsening and talk of a double-dip recession, this is a trend that shows no sign of slowing down.

'This, coupled with the continuing rise in employment-related enquiries, paints a worrying picture of the state of the UK economy.’