KPMG comments on today’s labour market figures

“No signs yet of cooling in a tight labour market” says Yael Selfin, Chief Economist at KPMG UK.  

“No signs yet of cooling in a tight labour market” says Yael Selfin,

“Labour shortages have become a persistent feature since the pandemic, and a key limiting factor to business growth. The number of vacancies remained above the one million mark for the ninth month in a row as demand for labour continues to outstrip the number of available candidates.

“Real wages, which are estimated to have fallen by 1.2% in the 12 months to March, are contributing to the squeeze on household incomes. The pace of nominal wage growth remained close to 4%, as wages struggle to keep pace with rising inflation, suggesting that inflation is not yet embedded in wage bargaining expectations. Although bonuses in some sectors were high, compensating for the loss in purchasing power for some employees.

“Unemployment fell to 3.7% in the three months to March 2022, while overall employment rose to 75.7%, 0.9 percentage points below pre-pandemic levels. We expect the labour market to remain tight over the summer months, however a slowdown in GDP growth could see the unemployment rate climb to 4% by the end of the year.”

 

-Ends-

 

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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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