Labor Department watchdog launches probe into the Bureau of Labor Statistics

The Department of Labor’s internal watchdog is initiating a review of the Bureau of Labor Statistics’ (BLS) methods for collecting and reporting economic data. Laura Nicolosi, assistant inspector general for audit in the Labor Department’s Office of Inspector General, stated in a letter to acting BLS commissioner William Wiatrowski that the watchdog will assess how the statistics bureau gathers and presents monthly inflation and employment data.

Nicolosi highlighted the Labor Department’s recent announcement of significant downward revisions to its previous estimates of job growth. According to BLS data released on Tuesday, the U.S. labor market added over 900,000 fewer jobs in the 12-month period ending March 2025 than initially reported. The BLS compiles its monthly employment report through separate surveys of households and businesses, along with other indicators such as state unemployment claims. Revisions to previous month’s figures are common as more accurate data becomes available.

The internal review will also scrutinize how BLS collects, reports, and revises data for the Producer Price Index and Consumer Price Index, two key measures of inflation. Recent data indicates a rise in inflation across the U.S.

Former BLS commissioner Erika McEntarfer was dismissed by President Trump last month, who accused her of political bias following a weak July employment report and downward revisions to prior months’ job gains. The President’s decision to remove McEntarfer and question the accuracy of labor data has raised concerns among economists and policymakers.

McEntarfer has defended BLS’ data collection efforts, emphasizing the dedication of statisticians and public servants within the bureau. Economists and the National Association of Business Economists have expressed support for BLS, highlighting the importance of maintaining trust in official statistics to avoid negative impacts on financial markets and the economy.

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