Review of BLS Economic Data Compilation Underway

The Labor Bureau’s internal watchdog is starting to evaluate how the Labor Statistics Bureau (BLS) compiles its economic data.

A letter from Labor Bureau aide Laura Nicolosi, sent on Wednesday, indicated that the review will focus on the monthly consumer price index (CPI), producer price index (PPI), and the processes used to collect and report employment data.

This correspondence was directed to William Wiertrowski, who has taken over leadership of the agency following the firing of former BLS commissioner Erica Mantelfer by President Trump last month.

In recent months, the BLS has scaled back its data collection efforts, affecting both the CPI and various categories of PPI. This reduction appears to stem from limited resources available for gathering product information.

The CPI and PPI are essential for calculating inflation; CPI reflects changes in the average price of selected consumer goods, while PPI addresses changes in the average price across the marketplace for raw goods and services.

The watchdog’s letter also confirmed a recent announcement by the BLS that stated the U.S. economy had added 911,000 jobs over the past year, a revision that was greater than initial reports.

Labor Secretary Lori Chavez Deremar commented that this revision raises additional doubts about the reliability of the data published by the BLS.

“We are dedicated to resolving these issues, which includes enhancing transparency and modernizing our methods to provide more precise and timely data for American businesses and workers,” she stated.

It’s important to note that Labor Bureau inspectors operate independently from the agency and are tasked with conducting audits to assess the effectiveness, efficiency, economy, and integrity of all Department of Labor programs and operations.

Michael Mikulka, the General Deputy Sub-Inspector of the Labor Bureau, is leading this department since accepting the position in July.

Last month, Trump directed the firing of Mcentarfer due to concerns about revisions to BLS job numbers for May and June.

In Mcentarfer’s stead, Trump appointed Eji Antoni, who has previously made headlines for his controversial statements on social media and cable news. This appointment will require Senate confirmation.

The Hill has reached out to the Labor Department and BLS for comments regarding the letter.