Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels rise by 70,000, Bernard Brown, partner and head of business services, KPMG Management Consulting, says:
“What a difference a few weeks can make. Just eight weeks ago figures were encouraging greater confidence as employment improved for the sixth consecutive month. Yet with today’s figures marking a drop for the second month in a row, any hope of recovery has been dealt a blow. The mismatch between improving employment figures and UK GDP has been well and truly exposed as an anomaly, and with the data emerging so soon after the IMF downgraded its forecast for the UK’s growth prospects, it is likely that business confidence will falter.
“The problem, of course, is that whilst employers are too cautious to recruit, those who are working will be stretched so far that productivity will suffer. With output low, employers will continue to hold back, making it difficult to see how the spiral can be broken. The hope must be that measures announced in last month’s Budget begin to have an effect and that the dampener created by this month’s April Showers are replaced by a sunnier outlook as the year progresses.”
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or email@example.com
Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals 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. KPMG International provides no client services.