Tuesday’s data showed that the labor market was continuing to cool, following the same trend as the previous month, with more unemployment and fewer job vacancies.
The Bank of England has raised interest rates to their highest level since 2008, and officials have signaled they will remain high well into next year.
But the latest labor market release needs to be taken “with a huge pinch of salt,” Philip Shaw, an economist at Investec, wrote in an analyst note.
Policymakers at the Bank of England have “lost another important set of figures” to guide them in setting interest rates, he argued.
Last month, the statistics office issued a particularly large upward revision to the size of the economy after pandemic lockdowns.
Persons:
” Philip Shaw
Organizations:
Bank of England, Investec, Statisticians, Labor Force Survey