Labor Department watchdog launches probe into the Bureau of Labor Statistics

The Department of Labor’s internal watchdog is reviewing the Bureau of Labor Statistics (BLS) to examine how it collects and reports key economic data, including monthly inflation and jobs reports.

Laura Nicolosi, assistant inspector general for audit, announced the review in a September 10 letter to acting BLS commissioner William Wiatrowski, citing recent large downward revisions to payroll estimates as a primary concern.

The BLS produces employment data through surveys of households and businesses, supplemented by state unemployment claims, and frequently revises prior months’ figures as more complete information becomes available.

The review will also scrutinize the BLS’s handling of inflation data, including the Producer Price Index and Consumer Price Index, amid recent U.S. inflation increases, CBS News has reported.

Former BLS commissioner Erika McEntarfer was fired by President Trump in August, who accused her of political bias following weaker-than-expected job growth and revised payroll figures; she has defended the bureau’s work, highlighting dedicated staff and challenges due to budget cuts.

Economists have warned that undermining trust in federal statistics could harm markets, investment, and economic growth, with ripple effects on households, businesses, and global markets.