This is due to the fact that the Labour Force Survey (LFS) has been experiencing a fall in response rates and some quality challenges as a result. The idea put out by the ONS is to transition to a Transformed Labour Force Survey (TLFS), in order to improve the quality of the labour market data based on a more adaptive and responsive survey.
But so far, the change has not quite materialised with the progress running into a few bumps in the road.
ONS notes that there are “challenges that remain before we are able to transition confidently and securely”. Adding that “there are issues that remain before we can transition and further steps are required so that the TLFS can reach the quality necessary for users”.
In the meantime, they will continue to use the LFS as the lead measure of the labour market. And therein lies the caveat when it comes to the latest UK labour market data still. No doubt it is still the best gauge that we have on things but it isn’t quite of the same quality and assurance as it was before, and the BOE has also acknowledged that.
As such, it is something worth taking note and keeping in mind. ONS says that they might only be able to switch things up early next year. So, we’ll see.
This article was written by Justin Low at www.forexlive.com.
