Developing a new Linked Employer Employee Dataset for the UK

Linked Employer Employee Datasets (LEED) are a unique and valuable component of any country’s data infrastructure. Linked data on workers and their employers allow for a more complete understanding of the dynamics of the economy and labour market than studying households or organisations alone.

The most complete forms of LEED integrate longitudinal administrative data on employers and employees with rich survey data, all linked together via a comprehensive employer-employee data spine. This infrastructure exists in the United States and in many European countries. However, the UK does not currently have a comprehensive LEED infrastructure of this nature.

The Annual Survey of Hours and Earnings (ASHE) samples only 1% of employees, so it is limited in what it can say about worker heterogeneity within an organisation. The Workplace Employment Relations Survey (WERS) Series has captured rich detail on workplaces and workers, but the sample design makes it difficult to repeat, with the last wave conducted in 2011.

This project will firmly establish the feasibility of developing a LEED data­set for the UK and outline practical steps for implementation.

The first stage of the project involves scoping out the broad parameters of a new LEED dataset for the UK. It also involved a workshop in September 2024 that brought together key stakeholders to discuss the value of new LEED infrastructure. These discussions will be used to develop the “use case” that will be necessary to support any future investment.

The remainder of the ESCoE project will continue to scope out feasible parameters for any new LEED infrastructure, should resources be available in the future to allow the proposals to be implemented.

This will include:

• Identifying the core features of the linked employer-employee data spine.
• Establishing a framework for linking to other data resources.
• Identifying the possibilities for using the data spine as a sampling frame for new employer/employee surveys.
• Establishing the conditions for data access.
• Identifying steps to implementation.

A final report from the feasibility study is due in March 2025.

New LEED could provide a range of economic statistics and produce unique insights on a wide-range of policy-relevant issues in areas such as: productivity and growth; career progression, job quality and wellbeing; corporate governance and employment relations and the future of work.

The infrastructure would offer significant advantages over the existing UK employer and employee datasets by providing a comprehensive, longitudinal and data-rich perspective on employment.