financetom
Economy
financetom
/
Economy
/
Report blames US Labor Department's statistical leadership for data missteps
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Report blames US Labor Department's statistical leadership for data missteps
Dec 10, 2024 12:36 PM

WASHINGTON (Reuters) - The U.S. Bureau of Labor Statistics' leadership was to blame for a series of missteps this year that put the agency under scrutiny, a report said on Tuesday, noting that its shortcomings included being insufficiently focused on economic data releases, communication with users and providing adequate training.

But the report from a team of experts made up of government and private sector members said none of the incidents were related to the quality or accuracy of the agency's core data work.

No dishonest or nefarious underlying motives had been found, the report added. Acting Labor Secretary Julie Su ordered an inquiry after three incidents, including the early release of a portion of the Consumer Price Index for April.

"I want to emphasize that throughout their conversations with me, the team emphasized that overall, their investigation revealed a really excellent organization with a highly capable staff, deeply committed to their mission and their agency," BLS Commissioner Erika McEntarfer told reporters.

"My first hope and expectation is that you will see a seamless data release process. We've already taken a number of steps to further mitigate risk."

The BLS compiles economic reports such as the closely followed monthly employment report and consumer price data.

In May, the BLS reported that a subset of files had been inadvertently loaded to its website approximately 30 minutes prior to the scheduled 8:30 a.m. ET release for April's CPI and Real Earnings data. McEntarfer said there was no noticeable movement in the U.S. Treasury market on the day some of the CPI data was released early.

Months earlier, a BLS economist was reported to have been sharing undisclosed technical calculations underlying some of the data from the CPI series with private-sector economists who were dubbed super-users.

"It was an idiosyncratically collected group of emails of people who had been asking him questions that he put together against policies and procedures that BLS outlined, so, yeah, it was limited to one person and ceased at the moment its attention was brought to the agency," McEntarfer said.

In August, the release of the preliminary annual benchmark revision for the nonfarm payrolls report was delayed for more than 30 minutes after its scheduled 10 a.m. release time, but it still found its way onto social media platforms before the agency posted it.

The investigation found that the agency's technology and software modernization had been hampered by underfunding and a lack of multi-year funding to enable it to ensure its processes and systems kept pace with technological advancements.

USE OF CONTRACTORS

The panel of investigators recommended among other things that the BLS re-imagine enterprise training for front-line staff, communicate earlier and more frequently with users about upcoming revisions to survey methodologies in a manner that is appropriate for both expert and more general users, and revise contingency planning to mitigate the risk of untimely releases.

"BLS management mandated accountability at the supervisory and manager levels, and added standards for those two levels in performance management plans," said Jonathan Schwabish, a member of the committee that conducted the inquiry into the BLS' procedures and practices.

Schwabish, who is a senior fellow at the Urban Institute, also said the BLS had removed contractors from critical roles and limited those functions to federal staff.

"So prior to these incidents, certain releases either had input or help from federal contractors, and so BLS, after these incidents, removed the contractors from those roles."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed's Collins leans against December rate cut in CNBC interview
Fed's Collins leans against December rate cut in CNBC interview
Nov 21, 2025
BOSTON (Reuters) -Federal Reserve Bank of Boston President Susan Collins said on Friday that monetary policy is in the right place amid a resilient economy, in comments that suggest she remains skeptical of the need to cut interest rates again at next month's monetary policy meeting. Given where inflation currently stands, restrictive policy is very appropriate right now, and the...
November S&P Global US Flash Manufacturing, Services Measures Both Indicate Expansion
November S&P Global US Flash Manufacturing, Services Measures Both Indicate Expansion
Nov 21, 2025
09:56 AM EST, 11/21/2025 (MT Newswires) -- The November flash reading of manufacturing conditions from S&P Global fell to a four-month low reading of 51.9 from 52.5 in October, compared with an expected increase to a reading of 52.0 in a survey compiled by Bloomberg as of 7:45 am ET. The index still indicates expansion in the sector which follows...
Fed's Logan calls for holding rates steady 'for a time'
Fed's Logan calls for holding rates steady 'for a time'
Nov 21, 2025
(Reuters) -Dallas Federal Reserve President Lorie Logan on Friday called for leaving the policy rate on hold for a time while the central bank assesses how much of a brake the current level of borrowing costs is putting on the economy, with soaring stock prices one reason to think it may not be much. In remarks in Zurich, she repeated her...
Fed's Jefferson: AI-related stock gains unlikely to be dot-com boom replay
Fed's Jefferson: AI-related stock gains unlikely to be dot-com boom replay
Nov 21, 2025
(Reuters) -Federal Reserve Vice Chair Philip Jefferson on Friday said he feels the current surge in stocks related to artificial intelligence is unlikely to be a replay of the late 1990s dot-com stock boom that ended in a bust, in large part because AI-related firms are well established and have actual earnings. A recent Fed report showed some 30% of...
Copyright 2023-2026 - www.financetom.com All Rights Reserved