Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 November 2024 to Question 11774 on Labour Force Survey, what assessment she has made of the potential impact of the designation of Labour Force Survey data as official statistics in development on her Department’s policy-making.

The Labour Force Survey (LFS) has observed falling response rates, resulting in increased volatility in labour market data [1]. The Office for National Statistics (ONS) is undertaking work to address these quality issues and continuing to develop the Transformed Labour Force Survey (TLFS) as the long-term solution for collecting labour market data. In July 2024, the ONS have provided the latest update on its plans for labour market transformation [2].

While these improvements are underway, LFS estimates are currently designated as ‘official statistics in development’, and the ONS advise caution when interpreting changes in headline LFS rates.

In line with ONS recommendations [3], LFS estimates are used alongside a number of other ONS labour market indicators, including Workforce Jobs (WFJ), Claimant Count data, and Pay As You Earn (PAYE) Real Time Information (RTI), to support policy-making.

The ONS’ ambition for the TLFS is to allow a more adaptive and responsive survey to meet user needs, which will improve the quality of the labour market statistics [4] that the Department uses to support the development of policy.

[1] LFS performance and quality monitoring report: July to September 2024

[2] Labour market transformation – update on progress and plans - Office for National Statistics

[3] https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/november2024

[4] Labour market transformation – update on progress and plans - Office for National Statistics