UK's Labour Market Data Crisis Linked to Falling Survey Participation

The Office for National Statistics faces challenges with unreliable jobs data due to low response rates, technological barriers, and funding constraints.

The UK's Labour Force Survey response rate has dropped from 40% pre-pandemic to just 13%, leading to concerns about the reliability of employment data.
ONS Chief Sir Ian Diamond attributes declining participation to factors such as gated communities, smart doorbells like Ring, and increased flat refusals.
The Bank of England and policymakers warn that unreliable data hinders their ability to make informed decisions on interest rates and economic policies.
The ONS plans to introduce a revamped survey by early 2026, with shorter questionnaires and potential compulsory participation to improve data accuracy.
Budget cuts of £34 million and recruitment challenges have further strained the ONS's ability to address the data reliability issues effectively.