The BLS took action after the improper data release but the watchdog wants more
Economist Steve Moore discusses the latest May jobs report, the strength of the US economy and the impact of President Donald Trumps pro-business policies on Maria Bartiromos Wall Street.
The Bureau of Labor Statistics has taken steps to address problems that led to the release of important economic data at inappropriate times in 2024, although the watchdog said it has more work to do in establishing safeguards.
The Labor Department’s inspector general’s report looked at three cases where economic data was released early or late, or methodology was shared outside before it was available to the public. All the while, BLS leaders didn’t learn about the situation until an hour after it happened.
BLS data on key reports such as CPI inflation data and benchmark revisions to employment data under the monthly jobs report are of great importance to economic and financial market decision makers, and timely or untimely releases can give certain vendors an advantage over their peers.
The report explained that the watchdog found deficiencies in procedures regarding data release procedures, and that the BLS insufficiently emphasized the importance of equal access to information and protection of restricted material. The IG said BLS’s deviation from policy in those cases “harmfully affected its reputation and credibility.”
INFLATION RETURNED IN MAY AS CONSUMER ENERGY PRICES INCREASED.
The BLS mistakenly released early inflation data and a key employment report for late 2024, in addition to conditions for sharing internal data with external sources. (Joe Raedle/Getty Images)
In May 2024, monthly consumer price index (CPI) data was published 31 minutes before it was due to be released, and in August 2024 the publication of the BLS’s first benchmark update of employment data was delayed 34 minutes despite being provided by some users who reached out to the agency.
Additionally, internal or inaccurate methodological information was shared externally three times that year before it was published.
“In response to these incidents, BLS closed gaps in IT security, revised operational standards, strengthened management oversight, and training,” the IG report said.
TRUMP ORDERS END JOBS STATISTICS AFTER JOBS REPORT AND LOW REVIEWS
The Bureau of Labor Statistics said it has revised its policies and procedures to prevent the unauthorized release of economic data. (Anna Moneymaker/Getty Images)
“However, we have identified additional improvements that the BLS can make to reduce the risk of inappropriate disclosure of important economic information,” the inspector general said.
“BLS still needs to review its inspection procedures, clarify its recently updated policies and procedures, and ensure employee compliance by improving buy-in, understanding expectations, and accountability,” explained the IG, adding that it should also finalize its critical communication programs and conduct related tests to ensure that employees are prepared for these situations.
BLS Acting Commissioner William Wiatrowski also filed a letter in response to the report saying the audit findings are “generally consistent with previous reviews” aimed at monitoring premature or unauthorized disclosures.
TRUMP VISITS MACK TRUCKS PANT IN BATTLEGROUND PENNSYLVANIA DISTRICT TO PUSH OUT ECONOMIC AGENDA AS HE IS IN LOOM
Economic data is of great importance to financial markets and economic decision makers, raising issues of untimely or unauthorized release. (Reuters/Jeenah Moon)
Wiatrowski explained that the IG’s report acknowledges several corrective actions the BLS has taken, saying that in some cases the report and its recommendations “fail to recognize the substance of the corrective actions taken or to specify the documentation provided.”
“The OIG’s conclusion does not recognize that BLS has already strengthened IT audits, updated customer service policies, procedures and training, updated and distributed the BLS Crisis Communication Plan to all BLS employees with defined roles and that those employees have implemented the said plan,” he added.
The report comes as the BLS is scheduled to release its June jobs report on Thursday, instead of the usual Friday due to the Independence Day holiday.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Economists interviewed by LSEG report that the economy added 110,000 jobs in June, a figure that would mark the fourth month in a row of stable job gains despite representing a slowdown in growth seen in the previous three months.
