It added that survey data suggested that some firms may not be recruiting new workers or replacing ones who have left.
The number of job vacancies is now at its lowest in 10 years, excluding the plunge seen during the pandemic when lockdowns stopped firms from hiring.
Yael Selfin, chief economist at KPMG UK, said the “slowing pay growth opens the door for an interest rate cut in August”.
“The impact of April’s tax and administrative changes has led to a marked slowdown in hiring activity among firms,” she added.
“With domestic activity remaining sluggish, the MPC will likely want to provide support via looser policy to prevent a more significant deterioration in the labour market.”