NextFin news, The U.S. Labor Department's internal watchdog, the Office of Inspector General (OIG), announced on Wednesday that it has initiated an investigation into the Bureau of Labor Statistics' (BLS) processes for collecting and reporting jobs and inflation data. The announcement was made in Washington, D.C., where the Labor Department is headquartered.
The probe comes amid heightened scrutiny following a significant downward revision of employment data for the year ending March 2025, which showed 911,000 fewer jobs added than initially estimated—the largest such revision in over two decades. This revision was disclosed in a preliminary Labor Department report released on Tuesday.
The OIG's review will focus on challenges and mitigation strategies related to collecting data for the Consumer Price Index (CPI), Producer Price Index (PPI), and monthly employment figures, including the processes for revising these data. The investigation was prompted by both the recent job data revisions and BLS's decision to reduce data collection for key inflation metrics.
The letter initiating the review was addressed to William Wiatrowski, the acting BLS commissioner since August 1, when former Commissioner Erika McEntarfer was dismissed by President Donald Trump. McEntarfer's firing followed the release of a weaker-than-expected July jobs report and accusations from the Trump administration that the BLS data had become politically motivated and unreliable.
The OIG operates independently from political appointees, with acting deputy Inspector General Michael Mikulka currently leading the office. Assistant Inspector General for Audit Laura Nicolosi stated that the focus will be on the difficulties BLS faces in data collection and reporting, as well as the strategies employed to address these challenges.
The investigation also follows criticism from Labor Secretary Lori Chavez-DeRemer, who expressed concerns about the integrity of the data after the recent downward revisions, emphasizing the importance of accuracy and impartiality in economic statistics.
The probe has drawn attention amid ongoing debates over the reliability and politicization of economic data under the Trump administration, which has defended the dismissal of McEntarfer and called for modernization of the BLS. Meanwhile, some experts and Democrats have warned that political interference could undermine confidence in the agency's data, which is widely used by investors and policymakers.
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