ON THE MONEY
STUART THEOBALD: Good stats are a wise investment
Everything from interest rate decisions to how banks decide to allocate capital and take risk is compromised if data is inaccurate
Statistics agencies, here and abroad, are under fire. The UK’s main statistics agency is in trouble because it cannot produce reliable figures for unemployment. The head of the Bank of England has described it as a “substantial problem” that affects the central bank’s ability to set interest rates, as well as commercial banks’ decisions over bad debt provisions and risk appetite.
The UK Office for National Statistics (ONS) now says it will take until 2027 to fix its figures. The problems stem back to the Covid-19 pandemic, when the response rate to its survey plummeted and has not recovered. Experts who have examined the data suggest the agency is undercounting employment by about 1-million people. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.