UK Labour Data May Underestimate Employment by Nearly 1 Million

Resolution Foundation's analysis suggests official statistics misrepresent the post-pandemic job market.

The Resolution Foundation reports that the UK's Office for National Statistics (ONS) may have undercounted employment figures by up to 930,000 since the pandemic.
This discrepancy is attributed to a significant drop in response rates to the Labour Force Survey, which fell from 39% in 2019 to 13% last year.
The think tank's findings indicate that the employment rate might have reached pre-pandemic levels, contrary to official data suggesting a lower rate.
Bank of England Governor Andrew Bailey expressed concerns over the reliability of current labour market data, which impacts interest rate decisions.
The ONS acknowledges the potential inaccuracies and is working to improve survey methods and data quality with external expert collaboration.