The Big Money Show panel discusses a significant downward adjustment in US employment figures.
This Wednesday, the Labor Bureau’s internal watchdog, the Labor Statistics Bureau (BLS), is facing scrutiny regarding its data collection methods for inflation and labor reports.
The Inspector General’s office has notified BLS Chairman William Wiertrowsky that they are “initiating a review of the challenges faced by the Labor Statistics Bureau as it monitors economic data closely.”
In the communication, the IG pointed out that BLS has reduced its data collection for the Consumer Price Index (CPI) and Producer Price Index (PPI). The BLS has acknowledged a “significant downward revision of our new employment estimates” in its monthly employment report.
After the July employment report was released, former President Donald Trump criticized the BLS Commissioner, Erica Mantelfer, for revising the employment numbers—specifically, cutting 258,000 jobs from the prior May and June reports—and labeled the report as politically motivated.
Former BLS Commissioner advocates for improved data collection methods for job reports
BLS frequently modifies job data, particularly due to declining response rates in initial surveys over the past couple of months. Each monthly job report sees changes; thus, fluctuations are expected when more accurate data becomes available.
Earlier this year, BLS disclosed that it had curtailed its data collection for inflation reports owing to limited resources.
Moreover, there are looming budget and staffing challenges. The Trump administration’s 2026 Labor Department budget proposal seeks to slash the BLS budget for employment statistics and inflation data by roughly 8% and similarly reduce the workforce.
Three reasons behind Department of Labor’s revisions of employment reports
In July, BLS announced a suspension of certain data collection activities to align its research with available resources. The CPI data collection was halted in areas like Buffalo, New York, Lincoln, Nebraska, and Provo, Utah, and approximately 15% of samples in 72 other locations were also stopped. To assess the impact of these suspensions, BLS conducted simulations dating back to 2018.
“We will continuously evaluate our survey operations and allocate resources for data collection efficiently to reduce CPI measurement errors overall,” the agency stated.
Trump administration halts labor statistics amid revisions
The Trump administration has criticized the BLS for the magnitude of the annual benchmark revisions to workforce data. The most recent reserve benchmark reduced employment figures from April 2024 to March 2025 by 911,000 jobs. The final estimates begin with the January 2026 job report, set to be released in February next year.
To enhance its estimates, BLS incorporates quarterly state unemployment statistics and more accurate business data into its annual benchmarking process, which helps correct reporting errors from monthly data collection.
Following the release of the benchmark revisions, Labor Secretary Lori Chavez Deremer stated, “The large downward adjustment raises doubts about the integrity of the data published by BLS.”
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“Broadcast leaders haven’t improved practices during the Biden administration, relying on outdated methods that aren’t entirely effective in a reliable system, which raises concerns about their motives for inaction. The Trump administration has put an end to years of negligence.”
Chavez-Deremer had previously shared BLS statistics on her official Labor X account, highlighting the Trump administration’s economic progress, including posts related to the July employment report before Trump dismissed the BLS chief.
