In response to the benchmark revision of employment data released today by the Bureau of Labor Statistics, the White House has claimed that large revisions are just the latest in “the long history of inaccuracies and incompetence at the BLS” and show the agency to be “broken.” Nothing could be further from the truth. The Bureau is one of the world’s most respected statistical agencies, well known for its commitment to producing high-quality data on the nation’s economy with full transparency. While the recent benchmark revisions are significant, they are likely the result of changes in the larger economy, as is widely recognized among people who follow labor-market data, rather than bias in the reporting of the data.
The administration views the recent revisions as evidence of political interference at the Bureau, and claims that the Bureau needs “new leadership to restore trust and confidence in the BLS’s data.” On the contrary, we have already witnessed the loss of trust and confidence that followed the removal of the BLS Commissioner on August 1 because the administration did not agree with the figures. Today’s claims regarding the Bureau are groundless and may cause further harm to the Bureau’s ability to carry out its work.
Our nation’s second largest statistical agency, the BLS has operated independently and in accordance with widely accepted principles and practices of federal statistical agencies. Benchmark data revisions are conducted annually as more comprehensive data are received, and previously released estimates are updated. These revisions are undertaken in a transparent, well documented manner so that stakeholders understand the basis for the revisions. To be clear, there is no substitute for federal economic data which are collected and reported objectively and free from political bias or favor.
COPAFS stands firmly behind the Bureau of Labor Statistics, its leadership, staff, and mission. It is essential that the BLS be afforded the independence it requires to maintain the trust and credibility it has earned over the past 140 years of operation. To suggest otherwise endangers the Bureau’s ability to continue to produce high quality data on the nation’s economy, to the detriment of all businesses, financial-market participants, policymakers, and households that rely on the insights it provides.