U.S. Senators Susan Collins (R-ME) and Bill Cassidy (R-LA) have raised concerns regarding the Bureau of Labor Statistics (BLS) and its frequent inaccuracies in reporting national jobs data. They pointed out that during the Biden-Harris administration, the BLS revised its monthly jobs data 43 times, with 53% of these revisions indicating less job growth than initially reported. The average monthly revision amounted to 101,114 jobs, and between March 2023 and March 2024, the BLS revised annual job figures downward by 818,000, marking the largest downward adjustment since 2009 [6e9c0ba3].
In contrast, during the Trump administration, the BLS's revisions averaged 73,681 jobs per month, with 57% reflecting higher job numbers. This stark difference has prompted Senators Collins and Cassidy to seek answers from the BLS, with a deadline set for November 28, 2024, to address these discrepancies [6e9c0ba3].
The BLS has recently faced scrutiny due to several missteps, including the premature release of the Consumer Price Index (CPI) in May and an email incident involving 'super users' in February. These events have raised concerns about the agency's data-sharing practices and potential favoritism towards Wall Street firms. Investigations by the agency's inspector general and congressional committees are currently ongoing to assess the implications of these incidents [1919ad69].
Austan Goolsbee, president of the Chicago branch of the Federal Reserve, has emphasized the need for substantial data before making decisions on interest rate cuts. His comments reflect a cautious approach to monetary policy, particularly in light of the recent challenges faced by the BLS [a7ce553f].
Despite the challenges, experts maintain that BLS data remains reliable. However, the agency's Commissioner, Erika McEntarfer, has acknowledged the increased scrutiny and the need for improved data management practices to restore public trust [1919ad69].
The Biden administration has also implemented changes to the waiting period for White House officials to comment on economic indicators, reducing it from one hour to 30 minutes. This change has raised concerns about potential political interference and confusion in financial markets [6f48817c].