The Reds are fifth in the Premier League table - three points outside of the top four and 12 behind league-leaders Manchester City.
But after returning to the Champions League this season and topping their group thus far - Owen thinks there is evident progress since the German took over the reins in 2015.
“Jurgen Klopp is doing a good job, I think he is very popular," Owen told Omnisport.
"The problem with Liverpool at the moment is in defence. I think Jurgen Klopp knows it and he tried to remedy that problem over the summer but couldn't get the one or two targets that he had.
"And that's unfortunately been the problem - in defence, they have conceded far too many goals and now there is a bit of a gap from the top, from Manchester City to Liverpool.
GETTY
Michael Owen praised the job Jurgen Klopp has done at Liverpool.
Jurgen Klopp will definitely try to strengthen in the winter with defensive players because in attack Liverpool are very exciting.
Michael Owen speaking about Liverpool's progress under Jurgen Klopp
"Jurgen Klopp will definitely try to strengthen in the winter with defensive players because in attack Liverpool are very exciting."
Only City and Manchester United have scored more goals than Liverpool this season.
But Owen, who played over 200 games for the Reds, thinks the squad assembled is much stronger than the Anfield faithful have been watching in recent years.
GETTY
Klopp guided Liverpool back into the Champions League.
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"I think we have been very disappointed in recent years with our Premier League in the Champions League," he said.
"But this year, I think this is the strongest set of teams that we have had for a long time. Manchester City are really playing well, a more attacking team, but then we have got Chelsea and Manchester United who are more defensive and solid, Tottenham as well.
"And then we have got Liverpool, who are a good attacking team. So we have got a variety of different teams, but this year much stronger than last year."
