Reacting to the news, today, that unemployment has risen by fallen by 56,000 to 2.56 million, Anna Marie Detert, a director within KPMG Management Consulting, says:
“Britain’s employers are walking an economic tight-rope at the moment but given the worsening financial situation at home and across Europe it is comforting to see employers holding their nerve in an effort to retain or recruit top talent. With some high profile British-based manufacturing plants recently announcing job creation schemes and round-the-clock production it seems companies are responding to international demand by hiring at home. They are also beginning to break free from the constraints of the ‘two-for-one’ rule of employment which has dominated so many workplaces in recent years. At long last, instead of one individual trying to do the work of two people, employers are in a better position to recruit and bring to an end situations where too much was done by too few.
“Employers are clearly determined to recruit the skills that the economy needs to help pull it out of recession and, by continuing the trend of recent months, they are defying expectations and economic logic. Right now, with a shrinking Euro zone economy, the temptation must be to reign in any spending and reduce risk, but the opposite seems to be happening and the hope must be that this newfound confidence continues to spread.
“Of course, the unasked question is whether employers can continue their balancing act, without falling headlong into an economic canyon. Ever increasing overheads combined with decreasing margins and a slow-down in footfall is combining to make the closing months of summer a tough time on the balance sheet. Employment may be moving in the right direction, but it remains to be seen whether the nerve being shown by business leaders will be matched by the economy.
“The gap between full and part-time employment is also something to watch. It may suit some employees to have a part-time role, but as rising costs continue to hit them in the pocket the demand for better pay through full-time employment will inevitably rise. When this happens, how the job market responds will be a key chapter in the story of economic recovery.”
Ends
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Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or mike.petrook@kpmg.co.uk
Notes to Editors:
About KPMG
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 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.
