UK Labor Market Data Less Reliable During Pandemic, Complicating Interest Rate Decisions for Bank of England
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The UK's Office for National Statistics labour market data has become less reliable due to declining survey response rates during the pandemic.
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It's now harder for the Bank of England to judge how tight the job market is and how fast wages are rising when setting interest rates.
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The headline employment and earnings figures differ from other data sources like tax receipts and pay settlements.
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The ONS is working to improve data collection but more accurate labour stats won't be available for months.
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With conflicting data it's tough for the BoE to know if further rate hikes are needed to control inflation.