Workforce Cuts Threaten Accuracy of Key Economic Data

Federal statistical data is increasingly at risk due to a shrinking workforce in key economic data-gathering agencies, according to Mark Zandi, chief economist at Moody’s Analytics. Zandi warns that workforce reductions at the Department of Commerce and the Bureau of Labor Statistics (BLS) threaten the accuracy and reliability of national economic data, which underpin both public policy and private investment decisions [1]. The problem is exacerbated by recent actions from the administration, including the abrupt removal of Erika McEntarfer, the BLS commissioner, shortly after the release of a revised and weaker July jobs report [1].

The July data showed only 73,000 new jobs, with job gains from May and June being revised downward by a combined 258,000. This brought the three-month average of monthly payroll growth to 35,000, a sharp decline from the 123,000 reported a year earlier [1]. Zandi attributes these large revisions in part to delayed data collection resulting from workforce cuts, which lead to late reporting and subsequent corrections. When government employment is stable, such lags may not matter as much, but during periods of decline—as seen in recent months—these delays become more visible and problematic [1].

The Bureau of Labor Statistics, which is responsible for producing key labor market indicators, has struggled with staffing shortages for some time. These constraints make it increasingly difficult to perform labor-intensive data collection activities, raising concerns about the accuracy and timeliness of core economic metrics [1]. Former government officials and independent analysts have called for congressional intervention to address what they see as a growing erosion of institutional integrity in federal data collection [5].

The broader implications of these workforce reductions extend beyond the Bureau of Labor Statistics. Understaffed statistical agencies are finding it harder to process and analyze data promptly, leading to larger revisions and a loss of confidence in the data’s reliability. Zandi emphasizes that investing in reliable data and the people who collect it is a foundation for smart decision-making and economic resilience [1].

Critics argue that the removal of McEntarfer sends a troubling signal about the administration’s commitment to impartial and trustworthy statistical processes [5]. The lack of a detailed plan to fill the BLS commissioner vacancy or to address the broader workforce challenges facing federal statistical agencies has left many in the economic community concerned. Until these issues are resolved, the reliability of the nation’s key economic data remains in jeopardy [5].

[1] https://fortune.com/2025/08/06/data-quality-at-risk-as-federal-workforce-shrinks-says-top-economist/

[5] https://www.theguardian.com/business/2025/aug/04/trump-firing-labor-statistics-chief-reactions