An excavation of a village that is believed to be a biblical site

The sector has been plunged into its worst crisis with potentially valuable projects wound down because housing developers have run out of money to fund them.

Figures show that 660 archaeologists have lost their jobs since the start of the credit crunch, a sixth of all those employed in the commercial fieldwork sector. Those who have held on to their jobs work fewer hours for less money – and are still at risk of being laid off.

The highly respected archeological unit at Manchester University closed last month after bosses withdrew funds, blaming the collapse in the construction industry.

The current plight marks an end to the boom years in archaeology, which is highly dependent on money from developers.

Since 1990, construction companies have had to engage archaeologists in order to secure planning permission on sensitive sites and three years ago 93 per cent of all archaeological investigations had been initiated this way.