The Isle of Man's Chamber of Commerce says around 1,000 jobs have been lost from key sectors in two years, representing the worst economic decline in a generation.
This warning is part of the chamber's campaign for political candidates to make economic growth the key priority of September's general election.
The organisation adds the job losses have come from industries which fuelled the Island's economy for decades - namely financial services, e-gaming, manufacturing and tourism.
Without urgent action, the chamber says the Island risks falling into a cycle of decline and rising pressure on public services.
154 FOI requests to Manx Care so far this year
Little Miss Dynamite gig cancelled due to illness
Legendary Ibiza DJ announces Island gig
Tyson Fury's big fight sells out in 40 minutes
Planners to decide on Ramsey dog wash application
Space weather and clear skies mean good chance to spot aurora later!
Peel event mixes cocktails and chemistry!
Poverty report to be considered in December