UK Workforce Data Overhaul Delayed Until 2027, ONS Confirms

Policymakers face challenges as unreliable Labour Force Survey hampers decisions on employment and economic trends.

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.