BLS Data Collection Review: US Watchdog Launches Investigation
- The US Labor Department's Inspector General is investigating the Bureau of Labor Statistics (BLS) following White House criticism and a meaningful revision to jobs data.
- On September 10, 2024, the Office of the Inspector general (OIG) for the US Labor Department announced it had launched an examination into the Bureau of Labor Statistics...
- This action followed a revision to previously released jobs figures by the BLS.
Labor Department Watchdog Investigates data Collection Practices at BLS
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The US Labor Department’s Inspector General is investigating the Bureau of Labor Statistics (BLS) following White House criticism and a meaningful revision to jobs data. The probe will focus on the challenges the BLS faces in gathering and updating economic facts.
Last updated: September 11, 2024, 01:50:43 AM PDT
What happened?
On September 10, 2024, the Office of the Inspector general (OIG) for the US Labor Department announced it had launched an examination into the Bureau of Labor Statistics (BLS).Reuters reported the investigation will examine the “challenges” the BLS encounters when collecting and updating data related to jobs and inflation.
This action followed a revision to previously released jobs figures by the BLS. The BBC reported that the revision indicated economic growth in the previous year was considerably lower than initially estimated.
Context: White House Criticism and Data Revisions
The investigation comes amid heightened scrutiny of the BLS from the White House.Concerns were raised after the BLS revised its initial estimates for job growth in 2023. The revisions, published on September 9, 2024, showed that job gains were significantly less robust than originally reported. This prompted criticism from governance officials who rely on the BLS data to inform economic policy.
In 2023, a report from the agency itself acknowledged concerns about declining initial response rates to BLS surveys. The report, as reported by Roll Call, concluded the BLS could “do more” to identify the limits of its data and be transparent about its assumptions. The agency has also been examining the BLS for issues related to its data release procedures.
What Data Does the BLS Collect?
The Bureau of Labor Statistics (BLS) is the principal fact-finding agency for the US government in the field of labor economics and statistics.It collects and analyzes a wide range of data, including:
- Employment and Unemployment: Monthly data on the labor force, including employment levels, unemployment rates, and labor force participation rates.
- Consumer Price Index (CPI): Measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
- Producer Price Index (PPI): Measures the average change over time in the selling prices received by domestic producers for their output.
- Job Openings and Labor Turnover Survey (JOLTS): Provides data on job openings, hires, and separations.
- Employment Cost Index (ECI): Measures the change in the costs of labor, including wages and benefits.
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