The Big Money Show Panel discusses a large -scale amendment in American jobs data.
The internal guards of the labor department announced to face challenges on Wednesday Bureau of Labor Statistics (BLS) in collecting data for its inflation and labor market reports.
The Inspector General of Labor Department wrote to BLS Acting Commissioner William Wiatrovsky to inform the agency that the IG’s office is “starting a review of challenges that bureau of labor statistics and look closely on economic data.”
In the letter, the IG stated that BLS announced to reduce data collection activities for the Consumer Price Index (CPI) and manufacturer Price Index (PPI). It states that BLS “recently released a large amendment of its estimates of new jobs in the monthly employment status report.”
chairman Donald Trump BLS Commissioner Erica McNarfra was weakened by 258,000 jobs in May and June after the July job reports and weakened by the revised employment. Trump claimed that the report was “rigged” and accused McNar of political bias.
Former BLS Commissioner says that there are better ways to collect data for jobs reports
Inspector General’s Labor Department’s office is checking BLS’s data collection challenges. (J. David AK / Getty Images)
BLS regularly Revise jobs data It publishes for the pre -two months with the report of each monthly jobs as it comes in more sample. The reaction rates of the initial survey have declined over years, which can cause instability when amended based on more full data.
The BLS announced earlier this year that it withdrew its data collection to report inflation due to lack of resources.
It also faces the possibility of further budget and staffing cuts – Trump administration The financial year 2026 for the Labor Department will deduct the BLS budget for about 8% for the budget request jobs and inflation data, while the agency will deduct the workforce with an equal amount.
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In July, BLS announced that “to align survey charge with resource levels, BLS suspended data collection for parts consumer price Index Sample in select areas across the country, “which began in this spring.
The BLS stated that it suspended the CPI data collection completely in Buffalo, New York Lincoln, Nebrasca, and Provo, Utah, while about 15% of the samples in other 72 areas across the country suspended. The agency stated that in 2018 it conducted a statistical analysis of the impact of suspension by running a simulation dating, which found that it reduced the CPI estimates to reduce the percentage points from 1/100th of the percentage point.
It states that it will “continue to evaluate the survey operations and efficiently assign available resources for data collection in a way that reduces overall CPI measurement error.”
Trump’s order after Job Report and Downward Amendment End of Labor Statistics Officer
Labor Secretary Lori Chavez-Dimer criticized the annual benchmark amendment of BLS from April 2024 to March 2025. (Chip Somodeville / Getty Images)
The Trump administration has also criticized BLS for the size of its annual benchmark modification for its labor force data. BLS’s initial benchmark amendment reduced employment from April 2024 to March 2025 Bottom down by 911,000 jobs And the agency will include the final estimate starting with the January 2026 Jobs report released in February next February.
The BLS quarterly state goes through the annual benchmarking process to include state unemployment data as well as more accurate records about commercial births and deaths in its estimates-one process that helps reduce reporting and non-reaction errors that accumulate through its monthly data collection.
After the release of initial benchmark amendment, Labor Secretary Lullaby Chavez-Demer “Large -scale amendment gives even more reasons to American people to doubt the integrity of data published by BLS.”
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“Bureau leaders failed to improve their practices during Biden administration, using old methods, once completely ineffective and questioning the motivation behind their inaction. The Trump administration has stopped for years,” said the Chavez-Demer.
Chavez-Dimer has earlier shared the BLS statistics posted on the official labor department ex-account for progress in the economic agenda of Trump Administration on its official X account, which includes a post related to the July job report before Trump took out the BLS chief.
