Overview

• Preliminary BLS benchmarking reduced reported payrolls by 911,000 for April 2024–March 2025, the largest such cut in years, signaling a weaker labor market than earlier data showed.
• The Labor Department’s inspector general said it will examine challenges in collecting and reporting monthly employment figures as well as CPI and PPI, notifying acting BLS chief William Wiatrowski in a letter from Assistant IG Laura Nicolosi.
• BLS attributed part of the gap to divergences between its CES survey and more comprehensive QCEW tax records, with analysts also pointing to declining response rates and strain on the birth–death model for new businesses.
• Resource constraints have led BLS to suspend CPI collection in three cities and discontinue about 350 PPI indexes, raising concerns about the robustness of key inflation indicators.
• Political pressure on the agency has intensified after President Trump fired Commissioner Erika McEntarfer and nominated E. J. Antoni, as the White House argues for new leadership while economists warn against politicizing statistical work and markets weigh increased odds of Fed rate cuts.