U.S. Labor Department Launches Review of Bureau's Economic Data Collection

The Office of the Inspector General at the U.S. Department of Labor has initiated a review focusing on the challenges faced by the Bureau of Labor Statistics in collecting and publishing key economic data. This review, announced in a letter dated Wednesday, will concentrate on the collection of CPI and PPI information, as well as issues related to the collection, release, and revision of monthly employment data.

The Department of Labor oversees the Bureau of Labor Statistics. This review comes on the heels of the Bureau's release of its annual employment data revision, which showed that the U.S. had added 911,000 fewer non-farm jobs than initially reported over the past year, ending in March. The July employment report, released on August 1, included the largest downward revision to previous months' employment data since the start of the pandemic. The same day, the President announced the removal of the Bureau's director.

When asked for comment, a Department of Labor spokesperson referred to a statement issued by the department following the release of the benchmark revision. The Secretary of Labor, Lori Chavez-DeRemer, stated on Tuesday that this data revision "further erodes the public's trust in the data released by the Bureau."

Like many government agencies, the Bureau is currently grappling with funding constraints and staffing shortages, issues that predated the current administration but have worsened during its tenure. The nominee for the new director is awaiting a confirmation hearing in the Senate, while one-third of the Bureau's senior positions remain vacant.

While the employment data revision has garnered the most attention, the Bureau has also had to suspend parts of its PPI and CPI data collection due to resource limitations in recent years. This review by the Inspector General's office aims to address these challenges and ensure the accuracy and reliability of the economic data published by the Bureau.