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Pill on measures of labour market tightness

BOE
  • Recently has been more divergence than normal in measures of labour market tightness. Have in communication put more emphasis on the ratio of vacancies-to-unemployment that has come down indicating some loosening in the labour market but still remains above pre-pandemic levels.
  • There are some questions about whether you can measure vacancies through time (online applications etc) and how to interpret the noise.
  • The unemployment rate is important to look at - but it's not the only indicator.

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