In a digital world, the use of outdated stats simply doesn't add up

Our economy gauges were invented in the last century. We need a system that works now, writes Zachary Karabell

- Zachary Karabell

In both the US and the UK, a crisis is brewing in how we measure our economies.

Economic statistics are artefacts of the mid-20th century, invented and honed to assess industrial economies made up of workers and citizens who dutifully responded to government requests for regular information. Now, as the first quarter of the 21st century draws to a close, that system is in disarray.

On both sides of the Atlantic, the most troubling statistics have been monthly employment reports that, along with inflation and GDP, form the basis for how policymakers assess the health of economies.

The Labour Force Survey in the UK was repeatedly delayed over concerns about accuracy, which culminated in the sudden resignation of the head of the Office of National Statistics in May. In August, after a particularly large revision in the unemployment report, the head of the Bureau of Labor Statistics (BLS) in the US was fired by President Trump, who claimed political bias.

While that accusation is almost certainly unfounded, the problem of increasing inaccuracy in the monthly report is real and has been brewing for some time.