Permanent placements fall again, but at slower rate
Pay rates continue to rise markedly
Worker availability increases to steeper degree
Commenting on the latest survey results, Jon Holt, Chief Executive and
Senior Partner of KPMG in the UK, said:
“We know our labour market is resilient. The big picture is that unemployment is historically low with the ease of filling vacancies back to prepandemic levels. Taken together with today’s data and expected interest rate cuts, inflation easing and increased consumer confidence over the summer, we will hopefully move towards a better economic outlook for the second half of 2024.
“But May’s data underscores the complexities in the current labour market. While demand overall remains weak due to firms still stalling on hiring decisions, the pace of decline has slowed for the third month in a row. Some sectors even saw demand growth - although a lack of skilled applicants could put further upward pressure on pay as employers compete to attract the best talent.
“Business confidence is ready to bounce back. And as well as counting on a more dovish Bank of England, ahead of the General Election CEOs will be closely following all parties’ policy commitments as they consider their plans for future growth.”
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