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

“The unemployment rate fell to 3.5% in the three months to August, its lowest level since 1974. The short-term unemployment rate, which leads the headline figure by around five months, also remained at its lowest level since records began, implying that even some short-term indicators still conceal the prospect of a potential rise in unemployment.

“The vacancy rate dropped to 4.1% on the quarter, although it’s still well above its level a year earlier. Anecdotal evidence suggests that although staff availability has improved in recent months, skill shortages and Brexit continue to weigh on the labour market.

“Pay growth continued to fall in real terms. While the ‘great resignation’ has helped many employees secure better paid jobs over the past year, the latest evidence points to a greater hesitancy to move jobs in light of the deteriorating economic outlook, which would inevitably keep a lid on pay demands.”

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