400,000 UK Workers Are Key to BOE’s Rate Dilemma

Last month’s strong jobs data put to rest any remaining doubts around the UK labor market’s resilience to the cost-of-living crisis. For Governor Andrew Bailey and his colleagues at the Bank of England, it also bolstered the case for more near-term policy tightening. How far the BOE ends up tightening will be determined in large part by the 400,000 workers missing from the labor force: If they fail to return in meaningful numbers, the central bank may find itself forced to hike rates next year into restrictive territory, according to Bloomberg Economics.

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