BLS Attributes Recent Errors to Leadership Rather Than Data Accuracy

The U.S. Bureau of Labor Statistics (BLS) has come under scrutiny due to a series of mistakes this year, with a report released on Tuesday attributing the issues to a lack of leadership. The report, prepared by a panel of government and private sector experts, criticized the BLS for not focusing enough on the publication of economic data, communication with users, and providing adequate training. Despite these findings, the report clarified that the quality and accuracy of the BLS's core data operations are not in question and that there is no evidence of dishonesty or underlying malicious intent.

Acting Labor Secretary Julie Su initiated the investigation following three incidents, including the early release of some Consumer Price Index (CPI) data for April. BLS Commissioner Erika McEntarfer attempted to reassure the public, stating, "My initial hope and expectation is that you will see a smooth data release process. We have already taken a number of steps to further mitigate the risks."

The BLS is responsible for compiling essential economic reports, including the monthly employment report and consumer price data. In May, the agency reported that files related to the April CPI and Real Earnings data were mistakenly uploaded early to its website. McEntarfer noted that this did not result in any noticeable movement in the U.S. Treasury market.

Previously, an incident was reported where a BLS economist had shared unpublished technical calculations from the CPI series with private sector economists. McEntarfer clarified that this action was limited to a single individual and ceased immediately upon being brought to the agency’s attention.

In August, another issue arose when the year-over-year revision of the non-farm payroll report was delayed and was seen on social media before being officially published by the BLS.

The report also emphasized that the BLS's efforts in technology and software modernization have been hindered by inadequate funding and a lack of multi-year funding, which has affected the agency's ability to keep pace with technological advancements.

The investigation panel recommended various measures, including redesigned corporate training for frontline staff, improved communication with users regarding survey methodology revisions, and updated contingency planning to prevent untimely data releases. Jonathan Schwabish, a member of the investigation committee and a senior member of the Urban Institute, stated that the BLS needs to enforce accountability at the supervisory and managerial levels and remove contractors from critical roles, limiting these functions to federal personnel moving forward.