The US Labor Department’s internal watchdog has initiated an investigation into the methods used for collecting jobs and inflation data, following criticism from the White House. The Labor Department’s inspector general’s office announced it would examine the challenges faced by the Bureau of Labor Statistics (BLS) in gathering and updating this information.
This investigation comes after a revision of job figures indicated that job growth over the past year was significantly lower than previously estimated. Recent reports revealed that the US economy had added approximately 911,000 fewer jobs than initially reported in the year leading up to March. In light of these developments, the inspector general’s office noted concerns about the BLS’s recent moves to reduce the collection of price information.
The scrutiny of the BLS intensified following President Donald Trump’s dismissal of the agency’s head, who was accused—without evidence—of manipulating job numbers. Additionally, some economists and Democrats have expressed concerns that the administration may be politicizing economic data. Trump’s nomination of economist EJ Antoni, known for his partisan views, as the new BLS commissioner has drawn criticism.
Moreover, economists have criticized the recent reductions in BLS panels that include outside experts and cuts to the collection of price data, which have been attributed to inadequate funding and staffing. The Trump administration has stated its intent to enhance the quality of the agency’s reporting and modernize its operations.
This is not the first review of BLS practices by the inspector general’s office; a 2023 report highlighted the decline in response rates to BLS surveys and suggested the agency could improve transparency regarding its data limitations and assumptions. The inspector general has previously looked into various aspects of the BLS’s data release processes.
Source: https://www.bbc.com/news/articles/cq5jgz75le7o?at_medium=RSS&at_campaign=rss