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4d ago

Labor Watchdog Probes BLS After Record-Sized 911,000-Job Downgrade

Citing a sweeping payroll revision and recent cuts to inflation surveys, the Labor Department’s inspector general opened a review of how the bureau collects and reports key data.

United States Department of Labor logo and U.S. flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Karoline Leavitt in the Brady Briefing Room of the White House on Sept. 9, 2025.

Overview

  • The Office of Inspector General notified acting BLS commissioner William Wiatrowski that it is reviewing challenges in collecting CPI and PPI data and in compiling, reporting, and revising monthly employment figures.
  • The BLS’s preliminary benchmark indicates 911,000 fewer jobs for the 12 months through March 2025, with a final revision due in February 2026 after reconciliation with state unemployment tax records.
  • The downward adjustment reflects differences between the CES employer survey and the more complete QCEW payroll data, with analysts noting declining survey response rates complicate measurement.
  • Resource strains have led BLS to suspend consumer price collection in three cities and discontinue about 350 producer‑price indexes, reductions highlighted in the watchdog’s review announcement.
  • The scrutiny follows President Trump’s August dismissal of BLS Commissioner Erika McEntarfer and his nomination of E. J. Antoni; economists say the weaker jobs picture could increase pressure on the Federal Reserve to cut interest rates.