Labor Department Watchdog Probes Systemic Challenges In BLS Data Reporting

Last Updated:September 11, 2025, 00:27 IST

The BLS has faced years of underfunding and staffing shortages across multiple administrations.

The bureau recently suspended CPI data collection in three cities and discontinued about 350 indexes (News18)

The US Department of Labor’s Office of Inspector General (OIG) has launched a formal review into the challenges faced by the Bureau of Labor Statistics (BLS) in collecting and reporting key economic data. This move comes in the wake of significant downward revisions to confirm payroll figures and scaling back of inflation data collection efforts, according to a Reuters report published Wednesday.

In a letter addressed to acting BLS Commissioner William Wiatrowski, Assistant Inspector General for Audit Laura Nicolos outlined the scope of the review, which will focus on systemic data collection issues affecting both employment and inflation indicators. Specifically, the audit will examine how the BLS gathers and revises monthly job statistics, as well as how it collects data for the Consumer Price Index (CPI) and Producer Price Index (PPI).

“Our focus will be on the challenges and related mitigating strategies for (1) collecting PPI and CPI data, and (2) collecting and reporting, including revising, monthly employment data,” the letter stated.

The scrutiny comes after the BLS revealed Tuesday that it may have overstated US payroll numbers by approximately 911,000 jobs for the 12-month period ending in March. This followed earlier revisions in August, which cut 258,000 jobs from the previously reported figures for May and June.

The data discrepancies have sparked political controversy. President Donald Trump, angered by the revisions, dismissed BLS Commissioner Erika McEntarfer last month. Trump accused her, without providing evidence, of falsifying employment data. He has since nominated E J Antoni, a chief economist at the conservative Heritage Foundation, to take her place, a move that has raised concerns about the politicisation of economic reporting.

The BLS has faced years of underfunding and staffing shortages across multiple administrations. Widespread retirements, hiring freezes, and targeted government downsizing campaigns have further strained its capacity. As a result, the bureau recently suspended CPI data collection in three cities and discontinued about 350 indexes from its monthly PPI report, citing resource limitations.

These developments have raised questions about the reliability of core economic indicators that inform policymaking, financial markets, and public trust in government statistics.

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