Overview

• The Office for National Statistics (ONS) has announced that its revamped Labour Force Survey (LFS) may not be ready until 2027, delaying efforts to address longstanding reliability issues.
• The current LFS has faced criticism for low response rates and inaccuracies, with economists estimating it has underestimated UK employment by up to 930,000 workers since 2019.
• The Bank of England and other policymakers have expressed concern over the unreliable data, which complicates decisions on interest rates and fiscal policies.
• Recent revisions to workforce estimates show UK employment is 402,000 higher than previously reported, but experts warn the updated figures still fail to provide a complete picture.
• The ONS is exploring options to improve response rates, including potentially mandating household participation, with an update on its timeline expected by spring 2025.