Yael Selfin, Chief Economist at KPMG in the UK, comments on today’s labour market figures:
“Today’s figures show that the UK labour market continued to tighten in the three months to April despite the uneven performance of the UK economy. Employment reached record level and the proportion of people in work or looking for work remained at its peak since records began.
“The discrepancy between strong employment and more subdued output growth points at disappointing productivity performance so far this year, which may explain the moderation in earnings growth in April. And as the rise in real earnings fell to a mere 0.1%, households are likely to hold back on discretionary spending.
“While a strong labour market provides a ray of hope that businesses are still confident about the future and households’ employment opportunities remain strong, it presents a dilemma for the Bank of England, as domestic price pressures are on the rise despite a spluttering economy.”
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and territories and has 200,000 people 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.