KPMG comments on today’s labour market figures - Jan 2022

The labour market brushes off Omicron setback” says Yael Selfin, Chief Economist at KPMG UK.  

 Assuming that restrictions are lifted potentially as soon as next week, the labour market could become even hotter, vindicating the Bank of England’s hawkish stance before Christmas.

Although growth in the number of payrolled employees eased in the fourth quarter, unemployment is expected to fall further this year.

Strong recovery in the labour market since early 2021 left payroll numbers 1.4% above their pre-pandemic level.

Productivity looks to have stagnated in the three months to November, with growth in hours worked exceeding that of GDP. This could reverse over the winter months as workers affected by Omicron temporarily cut down on work.