More jobs but at what cost, says KPMG
Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall by 146,000 to 2.02 million, Bernard Brown, partner and head of business services at KPMG, said: “The leaves of autumn may be falling but the sun is certainly still shining on employment prospects across the UK. Hot on the heels of OECD suggestions that our economy is expanding faster than any other G7 country, the latest figures give the clearest indication for some time that employers are prepared to spin the wheel of fortune and invest in new recruits. The question on candidates lips, however, will be what they can expect to earn. Inflation may be down, but wages have been stifled for so long that many will use the new found economic confidence to demand more before they sign on the dotted line.
“With another rise in the number of people finding work, recent headlines about potential job losses and companies falling into administration may come as a surprise to many. But they shouldn’t be dismissed as a blip. Now the economy is improving, companies and funders are more likely to take decisive action which, perhaps counter-intuitively to some, can lead to an acceleration in corporate insolvencies. There is some consolation, however, that the jobs market is now in a better position to absorb job losses caused by company administrations.
“There will be some nervousness about the skills at employers’ disposal as they plan for the long-term and it’s the conundrum of meeting immediate demand with employing the skills needed tomorrow that business will need to balance if economic growth is to continue.”