“The labour market outlook is uncertain. Slow to abate wage pressures may warrant caution from the Bank of England before cutting rates further. We anticipate unemployment to continue to trend upwards and improved labour supply to contribute to easing pay pressures throughout the remainder of 2025.
“Despite recent increases in cost pressures for businesses, wage growth has remained unchanged in June at 5%. Further weakening in pay growth is expected in the coming quarters, with forward looking indicators pointing to pay growth falling to below 4% by the end of the year, although near term progress is likely to be gradual.
“Labour market pressures continue to steadily loosen, despite unemployment remaining unchanged at 4.7%, with vacancies falling to 718,000 owing to a combination of weak domestic activity and high business taxes weighing on demand for staff.”
-ENDS-
For media enquiries, please contact:
Gerard Swinley, Corporate Communications
Tel: +44 (0) 20 3078 3948
Mob: +44 (0) 7510 375540
Email: gerard.swinley@kpmg.co.uk
KPMG Press Office
Tel: +44 (0) 207 694 8773
Notes to Editors:
About KPMG
KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.