Bernard Brown, partner and head of business services at KPMG comments on the latest UK employment figures, which have seen unemployment levels fall by 115,000 to 1.96 million.
He said: “The good news about the jobs market continues, but a reduction in the number of unemployed people doesn’t necessarily mean British business is back to its best. We are still seeing a slowdown in salary growth and while the reins are being pulled on take home pay, the economy will continue to trot along, rather than gallop.
“Our own research suggests that companies want to pay more – they need to if they are to recruit the best talent – but until they can afford to do so we will be stuck in a cycle which sees jobs going unfilled. It’s too easy to expect people to accept jobs despite the low pay on offer, when the truth is that they need to earn a wage that gives them enough to live on. If we are to tackle long-term unemployment a balance must be found between what employers can afford to pay and what employees can afford to live on.”
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Notes to editors
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 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. KPMG International provides no client services.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.