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.
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