🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

BLS faults leadership for recent missteps, not data accuracy

Published 10/12/2024, 20:18
© Reuters.

The U.S. Bureau of Labor Statistics (BLS) has come under scrutiny for a series of missteps this year, with a report released on Tuesday attributing the issues to leadership shortcomings. The report, compiled by a panel of government and private sector experts, criticized the BLS for insufficient focus on releasing economic data, communication with users, and providing adequate training. Despite these findings, the report clarified that the quality and accuracy of the agency's core data work were not in question, and no dishonest or underlying nefarious motives were discovered.

Acting Labor Secretary Julie Su initiated the investigation following three incidents, including an early release of part of the Consumer Price Index (CPI) data for April. BLS Commissioner Erika McEntarfer reassured the public, stating, "My first hope and expectation is that you will see a seamless data release process. We've already taken a number of steps to further mitigate risk."

The BLS is responsible for compiling essential economic reports, including the monthly employment report and consumer price data. In May, the agency reported an inadvertent early upload of files related to April's CPI and Real Earnings data to its website. McEntarfer noted that this did not cause any noticeable movement in the U.S. Treasury market.

Earlier, an incident involving a BLS economist was reported, where undisclosed technical calculations from the CPI series were shared with private-sector economists. McEntarfer clarified that the action was limited to one individual and ceased immediately once brought to the agency's attention.

Another issue arose in August when the preliminary annual benchmark revision for the nonfarm payrolls report was delayed and subsequently appeared on social media before the official release by the BLS.

The report also highlighted that the BLS's technology and software modernization efforts have been hindered by underfunding and a lack of multi-year funding, affecting the agency's ability to keep up with technological advancements.

The investigating panel recommended several measures, including re-imagined enterprise training for front-line staff, improved communication with users about survey methodology revisions, and updated contingency planning to prevent untimely data releases. Jonathan Schwabish, a senior fellow at the Urban Institute and member of the inquiry committee, mentioned that the BLS has mandated accountability at supervisory and managerial levels and has removed contractors from critical roles, limiting these functions to federal staff going forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.