Public Understanding of Economics

This research shows that the UK public often lack understanding of and trust in economic figures, such as the unemployment and inflation rate. However, at the same time, the public often have a nuanced, rich and complex understanding of the economy, which is generally understood through the lens of people’s familiar personal economy rather than the abstract national economy. Using these insights, the projects as part of this research programme have designed and tested different ways of improving public understanding and trust, and found that relatively small changes to how we communicate economic statistics can result in improvements in public comprehension, engagement and trust.

Public understanding of economics is essential for democracy, shaping people’s ability to assess economic performance and hold decision-makers accountable. The 2016 Independent Review of Economic Statistics highlighted that beyond informing effective policy making, economic statistics are a public good which is key to the electorate’s ability to perform their function in the democratic process. Using qualitative methods such as interviews, focus groups and surveys, the projects that are part of this research programme provide a rich evidence base on public understanding of economics and economic statistics, which diagnose a problem of a lack of public understanding of, and trust in, economic statistics. The projects have tested different ways of addressing this problem, including through better education, engagement and communication, and provide recommendations about how to improve public understanding and trust.

Across the various research projects in this workstream, we have explored public understanding and communication using a variety of different qualitative methodologies. In total, we have conducted interviews, focus groups and workshops with 233 members of the public, as well as with economists, statisticians and journalists.

The first project explored public understanding of economics and economic statistics through 12 in-person focus groups with a total of 130 people and an online survey with 1,665 people (Runge & Hudson, 2020). The second project brought public participants into conversations with professional economists in online workshops (Runge & Killick, 2021). The 15 workshops included a total of 55 members of the public, followed up by interviews with the 15 economists. The third project explored public perceptions of data uncertainty through online, semi-structured interviews with 20 people (Runge, 2021). The fourth project explored how to communicate labour market statistics in a more accessible and engaging way with the public, including through an experimental online survey with 3,849 respondents, interviews with 28 members of the public and 8 journalists as well as a content analysis of media reporting of ONS labour market release (Cathro et al., 2022; Runge et al., 2022). The final project involves another online survey, with 2,000 respondents, exploring public perceptions after the Covid-19 pandemic and in the context of the rises in the cost of living (Runge, da Silva Gomes & Hughes, forthcoming).

The first research report (Runge & Hudson, 2020) showed that large parts of the UK public have misperceptions about economic figures, such as the unemployment and inflation rate, including about what they mean, how they are collected and measured, and who they are produced and published by. However, the report also demonstrates that the UK public often have a nuanced, rich and complex understanding of the economy, which is generally understood through the lens of people’s familiar personal economy rather than the abstract national economy.

The second research report (Runge & Killick, 2021) brought economists and statisticians into conversations with members of the UK public. In their words, they found it “fascinating”, “stimulating” and “valuable”. The study fulfilled the aim to bring experts closer to public perspective of the economy, and to encourage them to reflect on what they learned and how these insights could improve how they communicate with the public in the future. The reports makes recommendations to conduct future public engagement studies on economic issues.

The most recent set of reports focus on exploring, designing and testing different ways of communicating economic statistics, using online randomised controlled experiments and interviews. One report (Cathro et al., 2022) found that relatively small changes to how labour market statistics are presented can result in improvements in public comprehension, engagement and trust. Another report (Runge et al., 2022) found that the ONS labour market release drives subsequent media reporting, suggesting that producers such as the ONS have an important role in shaping and improving communication to the public, even if their releases are not necessarily consumed directly by the public. Another report (Runge, 2021) explored public perceptions of data uncertainty, and found mixed evidence on the impact on trust when communicating the uncertainty around economic figures.

The projects provide a rich evidence base on public understanding of economics and economic statistics, which diagnose a problem of a lack of public understanding of, and trust in, economic statistics. The projects have tested different ways of addressing this problem, including through better education, engagement and communication, and they have made recommendations about the way forward. The findings have been widely covered in the media, including by BBC Online, BBC Radio 4, Financial Times, Daily Mail, and The Times. The project authors regularly have conversations with organisations that communicate economic data.

Runge, J. and Hughes, M. Special Session RSS Annual Conference, Harrogate, 7 September 2023.

Runge, J. ‘Economists and the public: the twin deficits How to improve public understanding of the economy‘ RES News Letter, April 2023

Broughton, N. ‘Communicating labour market statistics to the public‘ How can we communicate economic statistics better to the wider public‘ ESCoE webinar, 19 January 2023

Runge, J., Cathro, C., Stockland, K., Shaw, L. and Broughton, N.  ‘Media reporting of labour market statistics’ How can we communicate economic statistics better to the wider public‘ ESCoE webinar, 19 January 2023

Panel Session ‘Communication of economic statistics’ How can we communicate economic statistics better to the wider public‘ ESCoE webinar, 19 January 2023

Runge, J. ‘Improving Public Understanding of Economic Statistics: Explaining and Engaging Better’ Economic Statistics Centre of Excellence: The Next Five Years, poster exhibition, 12 December 2022, One Birdcage Walk, London.

Runge, J., Cathro, C., Stockland, K., Shaw, L and Broughton, N. (2022) ‘Improving Public Understanding of Economic Statistics: Media Reporting Labour Market Statistics’ ESCoE Discussion Paper Series, ESCoE DP 2022-27

Cathro, C., Runge, J., Whitwell-Mak, J., Stockland, K., Broughton, N. and Rostron, J. (2022) ‘Improving Public Understanding of Economic Statistics: Presenting Labour Market Statistics to the Public’ ESCoE Discussion Paper Series, ESCoE DP 2022-26

Cathro, C., Broughton, N. and Runge, J. ‘Statistics are too important to be confusing’ NIESR Blog, 17 November 2022

Cathro, C., Broughton, N. and Runge, J. ‘Statistics are too important to be confusing’ Behaviour Insight Team Blog, 15 November 2022

Cathro, C., Runge, J. and Broughton, N. ‘Statistics are too important to be confusing’ ESCoE Blog, 11 November 2022

Runge, J. ‘Improving Public Understanding of Economic Statistics’, ESCoE Conference on Economic Measurement 2022, University of Strathclyde, Panel Session II: Communicating Data 25-27 May 2022

Runge, J. and Killick, A. ‘What can Economists Learn from Public Perspectives on the Economy and Economic Statistics?’ ESCoE Conference on Economic Measurement 2022, University of Strathclyde, Poster Exhibition 26 May 2022

Runge, J. ‘Public Understanding of Economics and Economic Statistics’ Royal Statistical Society, 14 December 2021

Runge, J. ‘Economists and statisticians would benefit from talking more to the wider public‘ ESCoE Blog, 14 December 2021

Runge, J. and Killick, A. (2021) ‘What can economists learn from public perspectives on the economy and economic statistics?’ ESCoE Occasional Paper Series, ESCoE OP-04

Hughes, M. ‘Improving the communication of economics and economic statistics’ ESCoE Blog, 20 August 2021

Riley, R. ‘Public Good of Economic Statistics’ ESCoE Conference on Economic Measurement 2021, Panel Session II, 11-13 May 2021

Runge, J. and Hudson-Sharp, N. ‘Public Understanding of Economics and Economic Statistics: How People Think About Economic Concepts and Measurement’ ESCoE Conference on Economic Measurement 2021 Poster Exhibition, 11-13 May 2021. Poster Presentation.

RES Annual Conference 2021 ESCoE, ONS, RSS Special Session ‘Improving the communication of economics and economic statistics’ 12-14 Apr 2021.

Runge, J. ‘Public Understanding of Economics and Economic Statistics’ RES Annual Conference 2021, Special Session ‘Improving the communication of economics and economic statistics’ 12-14 Apr 2021. (presentation 03:00)

Mahajan, S. (ONS) ‘Communicating macroeconomic statistics (with users and with each other), United Nations Statistical Commission 52^nd Session. SNA Communication Strategy, A Side Event, 22 February 2021

Runge, J. ‘The public’s understanding of economic statistics’ Royal Economic Society News Letter, Issue no. 192, January 2021

Runge, J. and Hudson, N. (2020) ‘Public Understanding of Economics and Economic Statistics’, ESCoE Occasional Paper Series, ESCoE OP-03

Rebecca Riley (Chair), Johnny Runge (presenter & panellist), Jonathan Athow and Chris Giles (panellists) ‘Public Understanding of Economics and Economic Statistics’, ESCoE webinar and panel, 7 December 2020

‘Media coverage of ESCoE’s Public Understanding of Economics and Economic Statistics paper’ ESCoE website, 27 November 2020

Runge, J. ‘Public understanding of economics and economic statistics’ ESCoE Blog, 25 November 2020

Hill, R. ‘Better communication needed to tackle gaps in understanding of economic statistics’ FullFact website, 25 November 2020

‘Survey reveals gaps in understanding of economic figures’ Royal Statistical Society website, 24 November 2020

ESCoE Visit to The Charter School North Dulwich  https://www.escoe.ac.uk/video-escoe-visit-charter/