KPMG comments on today’s labour market figures

"Labour market shrugs off temporary weakening in output” says Yael Selfin, Chief Economist at KPMG UK.

Labour market shrugs off temporary weakening in output” says Yael Selfin, Chief Economist

"Latest data show the labour market has withstood the temporary setback triggered by Omicron. Unemployment is expected to fall further in coming months, with strong demand for workers outpacing the gradual return of students and some older workers to the labour market."

“The unemployment rate was little changed in the final quarter of last year, coming in at 4.1%. Early indicators, including Google searches and HR1 redundancy notifications, suggest that the labour market remained resilient through January."

“One of the consequences of a tight labour market is the ongoing pressure on wages. Private sector regular pay was up 3.9% on a year ago. Now that upward influence from Covid disruptions and furlough effects have largely abated, that figure reflects the underlying pay pressures the economy faces. Given the elevated level of inflation, we expect these pressures to intensify as employees make claims on employers knowing that available labour is scarce.”

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Notes to Editors:

About KPMG
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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