Ben Broadbent, a member of the Bank of England's Monetary Policy Committee, pointed out that the link between employment and inflation had proven "more stable" over the past few years than either of the variables and output.
As such, the business expert believes that more focus on employment data than output could allow the UK to gain a better understanding of inflation.
"As monetary policymakers, we should probably pay less attention to movements in output and relatively more to changes in employment. We’re likely to want to ease policy if employment falls and to tighten it if employment growth improves," Mr Broadbent explained.
Earlier this week, the Office for National Statistics revealed that 236,000 extra people found new jobs around the UK during the summer months.
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Posted by John Oak
Source: Salespeak News