Labor Department Inspector General Initiates Review of BLS Data Collection Methods
The U.S. Labor Department's Office of Inspector General has launched a review into the Bureau of Labor Statistics' data collection and reporting methods following significant downward revisions in employment figures and recent leadership changes.
The U.S. Labor Department's Office of Inspector General (OIG) has initiated a review of the Bureau of Labor Statistics (BLS) to assess its methods for collecting and reporting economic data. This action follows substantial downward revisions in employment figures and recent leadership changes within the BLS.
In a letter dated September 10, Assistant Inspector General for Audit Laura Nicolosi informed Acting BLS Commissioner William Wiatrowski of the review. The OIG aims to evaluate the challenges and mitigation strategies in gathering data for key economic indicators, including the Producer Price Index (PPI), Consumer Price Index (CPI), and monthly employment statistics.
The review was prompted by the BLS's recent announcement of a significant downward revision, revealing that the U.S. labor market added 911,000 fewer jobs in the 12-month period ending March 2025 than previously reported.
This development comes after President Donald Trump dismissed BLS Commissioner Erika McEntarfer on August 1, following a July employment report that showed unexpectedly weak job growth and revised down payroll gains for the previous two months. President Trump alleged, without evidence, that McEntarfer had manipulated employment data for political purposes.
In response to McEntarfer's dismissal, President Trump nominated E.J. Antoni from the Heritage Foundation to lead the BLS. Antoni's nomination is pending Senate confirmation.
The BLS has faced challenges due to budget constraints, leading to reduced data collection efforts. For instance, the agency has halted CPI data collection in three cities and ceased publication of approximately 350 PPI indexes.
Economists and policymakers have expressed concern that undermining trust in official statistics could have serious consequences, including heightened market volatility and reduced business investment.
The OIG's review aims to ensure the integrity and accuracy of the BLS's data collection and reporting processes amid these challenges.