The Office of the Inspector General at the U.S. Department of Labor has initiated a formal review into the difficulties faced by the Bureau of Labor Statistics (BLS) in gathering and publishing key economic indicators. The audit, confirmed by spokesperson Laura Nicolosi, will focus on the agency’s processes for measuring inflation and employment—two critical metrics closely monitored by policymakers, investors, and the public.
This move follows a series of significant downward revisions to previously reported job figures. In its latest annual update, the BLS revealed that 911,000 fewer jobs were created in the year ending March 2025 than initially estimated. This substantial adjustment suggests the labor market weakened earlier and more sharply than previously understood. The initial estimates are based on surveys of around 120,000 businesses, while final figures rely on actual payroll data submitted to state unemployment offices.
The credibility of the BLS has come under increased scrutiny, particularly after President Donald Trump criticized the agency and dismissed its commissioner last month. The large revision has also influenced expectations for monetary policy, increasing pressure on the Federal Reserve to consider lowering interest rates to stimulate hiring and economic activity.
Funding constraints may be contributing to data challenges. A July report from the American Statistical Association found that inflation-adjusted funding for federal statistical agencies has dropped by 16% since 2009. White House press secretary Karoline Leavitt emphasized the need for renewed leadership at the BLS to restore trust among financial markets, businesses, and households that depend on accurate economic data for decision-making.
The review aims to assess whether current methodologies and resources are sufficient to maintain the integrity and timeliness of the nation’s labor statistics.
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Inspector General to review ‘the challenges that Bureau of Labor Statistics encounters’ collecting economic data
A spokesperson for the department’s Office of the Inspector General said Wednesday that it is launching a review of “the challenges that Bureau of Labor Statistics encounters collecting and reporting closely watched economic data.” n nThe audit will focus on the agency’s reports on inflation and employment, a Wednesday letter to BLS acting commissioner William Wiatrowski said. Both reports are considered definitive measures of those two key aspects of the U.S. economy. The letter was from Laura Nicolosi, assistant inspector general for audit at the Labor Department’s inspector general. n nThe audit is the latest example of increasing scrutiny of the BLS as its recent jobs reports have shown a sharp slowdown in hiring over the summer. The agency has also made steep downward revisions in previously-published estimates of jobs and hiring, causing President Donald Trump to denounce the agency and to fire its commissioner last month. n nOn Tuesday, the BLS released annual revisions to its employment figures that showed there were 911,000 fewer jobs created in the year ending in March 2025, a deep reduction that suggested the job market was much weaker in 2024 and earlier this year than previously thought. n nThe initial data is compiled based on surveys of about 120,000 companies, and the revisions are then made based on actual job rolls employers then submit quarterly to state unemployment tax offices. n nU.S. government statistical agencies have seen an inflation-adjusted 16% drop in funding since 2009, according to a July report from the American Statistical Association. n nThe large downward revision has increased pressure on the Federal Reserve to reduce its key interest rate, in hopes that cheaper borrowing costs will help revive the growth and job gains. n n“This is exactly why we need new leadership to restore trust and confidence in the BLS’s data on behalf of the financial markets, businesses, policymakers, and families that rely on this data to make major decisions,” White House press secretary Karoline Leavitt said Tuesday.