The Department of Labor’s internal watchdog is launching a review of the Bureau of Labor Statistics’ (BLS) approach to collecting and reporting economic data.
Laura Nicolosi, assistant inspector general for audit in the Labor’s Department’s Office of Inspector General, said in a September 10 letter to acting BLS commissioner William Wiatrowski that the watchdog will examine how the statistics bureau compiles and reports monthly inflation and jobs data.Ā
In the letter, Nicolosi pointed to the Labor Department recently announcing large downward revisions to its earlier estimates of payroll gains. BLS released figures on Tuesday showing that the U.S. labor market added more than 900,000 fewer jobs in the 12-month period ending March 2025 than had earlier been reported.
The BLS produces its monthly employment report by conducting separate surveys of households and businesses. The Labor Department also taps other measures of how the job market is faring, including state unemployment claims. The Labor Department frequently issues revisions to figures from prior months as more complete or accurate data is collected over time.
The internal review of BLS’ methods also will examine how it collects, reports and revises data used in two closely watched gauges of inflation ā the Producer Price Index and the Consumer Price Index ā Nicolosi said. Recent data show that inflation around the U.S. has risen this year.Ā
President Trump last month fired then BLS commissioner Erika McEntarfer and accused her of political bias after the Labor Department’s July employment report showed unexpectedly weak job growth and revised down payroll gains for the previous two months.Ā
“I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can’t be manipulated for political purposes,” the presidentĀ wroteĀ in an August 1 post on social media.Ā
The White House directed questions about the probe to the Labor Department, which didn’t immediately respond to a request for comment.Ā
A spokesperson for the OIG said the office is not able to provide any comments or release any information beyond what is available on its website.
McEntarfer has defended BLS’ data collection efforts. In a social mediaĀ postĀ on Tuesday, she said the bureau is filled with “dedicated statisticians and public servants working tirelessly to improve economic data in a climate of budgetary cuts to data collection.”
Mr. Trump’s move to oust McEntarfer and question the accuracy of federal labor data has sparked concern among economists and policy makers.
“If trust in official statistics is lost, financial markets and the U.S. economy could face serious consequences: heightened volatility, reduced business investment, higher borrowing costs and slower growth,” the National Association of Business Economists said in a statement this week expressing support for BLS. “The consequences would ripple through households, businesses and global markets.”
