BLS data slipups are becoming a pattern
This can’t keep happening. With trust in government already ebbing, there’s yet one more reason to question the integrity of the office that distributes key data about jobs and prices. The problems at the Bureau of Labor Statistics need to be addressed quickly for the good of financial markets, the economy and public confidence in the state.
The Aug. 21 employment data release was already likely to cause consternation, especially amid a presidential campaign. That’s because it showed that an earlier estimate of how many jobs were created in the year through March was probably too high by 818,000, the biggest revision in 15 years. But such corrections do happen.
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The real problem was how the BLS distributed this extremely sensitive and market-moving data. The scheduled 10 a.m. public release was delayed, unexpectedly, until after 10:30. But during the delay BLS officials provided the still-unreleased numbers to select analysts who called the bureau. Market participants said they were stunned by such mismanagement.
The bureau has promised that its inspector general will investigate and pledged to make several procedural changes to avoid any future mishaps. But that’s of little solace given the increasing frequency with which such problems have been occurring. A full investigation was also promised after a bungled release of consumer price data in May. E-mail records and unusual price movements have raised suspicions that key statistics are being released selectively. The latest snafu adds to the impression that there’s a culture of leaks inside the department.
Making matters worse, the bureau still hasn’t fully implemented four outstanding recommendations that the inspector general made last year to ensure that its data collection and survey techniques are fair and transparent.The BLS, which traces its history to 1884, has become one of the most powerful actors in the economy. Markets watch its every move, while analysts meticulously parse its releases for insight. So there’s little excuse for the sloppy execution of its core business of safeguarding and releasing data.
The White House needs to ensure that the bureau’s leadership, and Acting Secretary of Labor Julie Su, make it a top priority to determine what went wrong. Congress should probe whether the bureau has deeper dysfunctions that need to be addressed. And the BLS itself should be transparent with the markets — and the broader public — about what it’s doing to ensure such slipups don’t continue.The bureau has an enormously important job. Mistakes happen. But they can’t become a pattern.
— Bloomberg Opinion
