Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall by 125,000 to 2.34 million, Stephen Barter, a director in KPMG Management Consulting, says:
“There’s certainly cause for optimism with the latest employment figures. In the past few days we’ve seen inflation drop to its lowest level for four years, car sales rising and an increase in the number of people booking holidays. It all combines to suggest employees might be becoming more comfortable about job security and the latest figures seem to give credence to peoples’ renewed sense of confidence. Britain’s construction sector is also recovering, buoyed in part by a rise in demand for houses. Add this to the increased demand for skilled IT workers and it’s easy to suggest that we will continue to see an upward curve in employment continuing for some time to come.
“The question remains, though, around whether employers are able to find staff with the skills to match demand. For some time there have been concerns that skills shortages could derail recovery. Current levels of momentum give hope that the recovery will build, yet there are paradoxes. It seems clear that cautious employers - and possibly employees - are preferring to take temporary roles ahead of going firm on permanent posts. As in the US, some workers are choosing to exit the jobs market altogether. Yet business investment is finally starting to tick upwards. Both business and consumer confidence has to be nurtured."
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.