Britain’s unemployment statistics are unreliable, and the Office of National Statistics is experimenting with a new method of counting the number of people out of work. Andrew Bailey, Governor of the Bank of England, said as much this afternoon while giving evidence to the House of Lords Committee on Economic Affairs.
Until the 1990s the unemployment figure was a simple count of the number of people who were claiming unemployment benefit. Since then, however, the figures have been collected via the Labour Force Survey, which is a questionnaire put to a sample of households. As Bailey says, the size of this sample was already shrinking before the pandemic, making the figures more volatile. Then, the Labour Force Survey moved from face-to-face to telephone interviews. ‘The problem is generally that as a nation we don’t answer the phone if we don’t know who is on the other end.’
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