Commenting on today's labour market figures, Yael Selfin, Chief Economist at KPMG UK, said:
"The unchanged unemployment rate (at 4.3%) means that the labour market remains very tight and the unemployment rate is an on-going source of concern for employers. This isn't helped by the fact that companies are already worried about the implications of Brexit on their workforce and on the availability of workers once the UK leaves the EU.
"Households will be disappointed that the continued low unemployment hasn't translated into any significant improvement in wages, especially in the context of high inflation and falling real income, which is putting significant strain on some households. The fall in real earnings by 0.5% in August is putting further pressure on consumer spending and on the overall short term prospects for the UK economy.
"The unemployment rate continuing below the 4.5% unemployment rate that the BoE considers sustainable will be one factor that the MPC will consider at its meeting next month, however the weaker wage performance should keep interest rates unchanged until next year."
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.