US Department of Labor Launches Review of BLS Amid Data Collection Challenges

The U.S. Department of Labor's Office of Inspector General (OIG) has initiated a comprehensive review of the Bureau of Labor Statistics (BLS) following significant challenges in collecting and reporting economic data. This action comes after the BLS revised its employment figures, revealing that the economy added 911,000 fewer jobs from April 2024 through March 2025 than previously estimated.

Assistant Inspector General for Audit Laura Nicolosi confirmed the review in a letter to Acting BLS Commissioner William Wiatrowski. The investigation aims to assess the obstacles and mitigation strategies related to gathering data for key economic indicators, including the Producer Price Index (PPI), Consumer Price Index (CPI), and monthly employment statistics.

The BLS has faced chronic underfunding and staffing shortages, leading to operational setbacks. These challenges have resulted in the cessation of CPI data collection in three cities and the discontinuation of approximately 350 PPI indexes.

The recent employment data revision indicates that job growth was slowing even before the implementation of President Donald Trump's tariffs. This substantial adjustment has raised concerns about the accuracy and reliability of employment data.

In August 2025, President Trump dismissed BLS Commissioner Erika McEntarfer amid unproven allegations of data fabrication. He has nominated E.J. Antoni from the Heritage Foundation as her successor. Antoni's nomination has been met with criticism due to perceived lack of qualifications and advocacy for suspending the employment report.

Erica Groshen, former BLS commissioner during the Obama administration, emphasized the importance of trust in statistical agencies, stating, "A statistical agency lives or dies by trust. Once trust is compromised, it's very hard to restore it."

BLS employees have responded to criticisms by emphasizing their commitment to reliable data, stating, "The numbers will remain accurate and nonpartisan."

The downward revision of 911,000 jobs indicates a weaker labor market than previously understood, potentially influencing Federal Reserve monetary policy and prompting considerations for interest rate cuts.

The dismissal of McEntarfer and nomination of Antoni reflect ongoing tensions and politicization surrounding economic data reporting and the perceived integrity of federal agencies.

The initiation of the OIG's review into the BLS underscores significant challenges in the collection and reporting of economic data, with far-reaching implications for policy decisions and public trust. The interplay of political actions, operational constraints, and data integrity issues necessitates a comprehensive examination to restore confidence in the nation's economic indicators.