BLS's Repeated History of Error and Ineptitude Uncovered
The Bureau of Labor Statistics (BLS) has been under scrutiny due to a series of job report revisions during the tenure of former Commissioner Erika McEntarfer.
In a controversial move, the BLS initially reported payrolls increased by 640,000 in the third quarter of the previous year. However, the Business Employment Dynamics report showed a drop in private payrolls of 192,000 for the same period, resulting in a difference of 832,000 jobs.
This pattern of reporting overly optimistic job numbers, followed by substantial revisions downward, has been a source of criticism. For example, the May and June job reports were revised down by a combined 258,000 jobs, a move that some argue misled policymakers such as the Federal Reserve and affected monetary policy decisions.
Media reports have highlighted discrepancies and questioned the reliability of BLS data during McEntarfer's tenure. Despite these criticisms, McEntarfer was removed from her position amid allegations of deliberately reporting false numbers, though these accusations were strongly denied by supporters of the BLS’s method and staff integrity.
Defenders of the BLS argue that its processes are decentralized, transparent, and designed to prevent manipulation of data. They emphasize that the Commissioner reports what the data show rather than determining the outcomes. However, there is no public information about a formal, ongoing investigation into technical errors or leaks of sensitive information linked to McEntarfer’s tenure.
The controversy continued into 2024, with the BLS revising down the jobs added in May and April of that year by 54,000 and 57,000 jobs, respectively. The benchmark payroll growth for the year ending in March 2024 was revised down by 818,000 jobs.
Two key Senate Republicans criticized the BLS for its large-scale revisions to initial employment data, citing continued failures in producing accurate economic data. The revised job reports also fortified the Federal Reserve's case that it does not need to be in a hurry to lower borrowing costs in June, as the June jobs report further reinforced this stance.
In February 2024, the BLS revised the jobs added in December of the prior year down by 43,000 jobs and the jobs added in January of that year down by 124,000 jobs. These revisions have added to the ongoing debate about the accuracy and reliability of BLS job reports during McEntarfer's tenure.
[1] Source: The Daily Caller [2] Source: Various media reports
- The controversy surrounding the Bureau of Labor Statistics (BLS) and the accuracy of its job reports during former Commissioner Erika McEntarfer's tenure has been a topic of debate in both general-news and policy-and-legislation discussions, with sources like The Daily Caller and various media outlets highlighting the discrepancies.
- The BLS has been under scrutiny for a series of job report revisions, including the reduction of previously reported jobs in the May and June months of a certain year, which some argue misled policymakers such as the Federal Reserve and affected monetary policy decisions.
- In the realm of education, it is crucial to understand the historical context of the BLS controversy, as the issue of data reliability is integral to the process of understanding national economic health.
- The ongoing debate regarding the accuracy and reliability of BLS job reports during McEntarfer's tenure has extended into politics, with key Senate Republicans criticizing the BLS for its large-scale revisions to initial employment data, affecting not only economic policy but also monetary policy decisions.
