Report Critiques U.S. Bureau of Labor Statistics Leadership Missteps

By Lucia Mutikani
WASHINGTON (Reuters) – A recent report attributed several missteps at the U.S. Bureau of Labor Statistics (BLS) to its leadership. The report criticized the agency for a lack of focus on economic data releases, inadequate communication with users, and insufficient training.

However, it emphasized that these shortcomings did not affect the quality or accuracy of the BLS’s core data work. No dishonest intentions were found within the agency. Following three incidents, including an early release of a portion of the Consumer Price Index (CPI) for April, Acting Labor Secretary Julie Su initiated an inquiry.

BLS Commissioner Erika McEntarfer expressed optimism, stating, "the investigation revealed a really excellent organization with a highly capable staff, deeply committed to their mission."

The BLS is responsible for compiling significant economic reports, including the monthly employment report and consumer price data.

In May, a subset of files was inadvertently uploaded to the BLS website 30 minutes before the scheduled release of April’s CPI and Real Earnings data. McEntarfer noted there was no significant market impact from this early release.

In a separate instance, a BLS economist shared undisclosed technical calculations from the CPI series with certain private-sector economists, leading to policy concerns. The sharing of this information was limited to one individual and halted when brought to attention.

Additionally, in August, the release of preliminary annual benchmark revisions for the nonfarm payrolls report was delayed over 30 minutes but leaked on social media prior to the official release.

The investigation revealed that underfunding hampered the BLS's technology and software modernization efforts, hindering its ability to keep processes aligned with technological advancements.

Use of Contractors

The investigative panel recommended comprehensive training for front-line staff, along with improved communication with users about methodology changes. They also advised revising contingency plans to handle potential untimely releases.

Jonathan Schwabish, a committee member, mentioned that BLS management emphasized accountability and raised performance standards. As a response to these incidents, BLS removed contractors from crucial roles, transferring those responsibilities to federal staff.