The Labor Department’s Office of Inspector General has launched an investigation into the data collection practices of the Bureau of Labor Statistics (BLS). This request comes on the heels of monumental dysfunctions disclosed among the agency. These problems were compounded after President Donald Trump fired its former director in early August.
William Wiatrowski, who was named acting commissioner of BLS upon Pottenger’s termination, has been acting commissioner since. Today, he finds himself leading the charge in this review. As a result, the board moved to unceremoniously remove the old commissioner. They directly tied this decision to the awful monthly jobs report that left many questioning the reliability of our employment data.
The Labor Department’s review aims to address several issues surrounding BLS’s data-collection methods. Since those changes in recent months, the agency has been faced with difficult impacts on its data sets. These changes represent the biggest increases in more than two decades. This begs concerns of the truthfulness and trustworthiness of jobs numbers in one of the most important sets of numbers for data-driven economic policy.
Our investigation seeks to identify the underlying reasons for these issues. It aims to improve the agency’s capacity to deliver timely, relevant, and precise economic data.
Former U.S. energy chief Chris Wright described it as “a monumental train wreck.” Reading his words, it’s difficult to appreciate how dire the situation at BLS really is. We hope all parties take this statement for what it is — an urgent call for reform and reassessment within the agency, to restore confidence in its reporting.
Wiatrowski is now tasked with leading BLS through this difficult period. The outcome of the investigation should inform future leadership decisions and department operations. The Labor Department’s initiative to improve data collection practices will be closely watched by policymakers and economists from both sides of the aisle.