In a significant development for the US economy, critical jobs data that could provide insight into the labor market has not been published due to a federal government shutdown. Former officials from the Bureau of Labor Statistics (BLS) have expressed concerns that companies, consumers, and policymakers are now “flying blind” at a crucial moment. The scheduled jobs report was expected to be released on September 29, 2023, but its publication has been stalled.
Both Erica Groshen, who served as BLS commissioner during the Obama administration, and William Beach, who held the same position under both the Trump and Biden administrations, indicated that the data for September had already been collected. Beach stated, “The jobs report is likely written in final draft,” underscoring the readiness of the information that remains unpublished.
Impact on Economic Decisions
The absence of the jobs report comes at a time when employment growth has been slowing for several months. According to a separate report from the payroll processing company ADP, US firms experienced a loss of 32,000 jobs in September, which contradicts Wall Street expectations of a gain of 45,000 jobs. Additionally, ADP revised August’s job figures from a growth of 54,000 to a loss of 3,000.
Groshen emphasized the importance of the jobs report for various stakeholders, stating, “Without today’s jobs report and next week’s scheduled inflation release, the Federal Reserve, US Treasury, financial markets, businesses, and households will be flying blind.” The uncertainty comes as decisions regarding interest rates loom, which could significantly affect families across the country.
Democratic Senator Elizabeth Warren has called on the Trump administration to release the jobs report despite the ongoing shutdown. She remarked, “The jobs data scheduled to come out this Friday has undoubtedly been collected, and the President must release it.” Warren stressed that the Federal Reserve requires the complete picture to make informed decisions regarding interest rates, which have far-reaching implications for American families.
Government Shutdown and BLS Operations
Under the current shutdown, the BLS has activated its contingency plan, which involves furloughing all employees except for the acting commissioner. A spokesperson for the BLS noted that “in the event of a federal government shutdown, the Bureau of Labor Statistics will suspend data collection, processing, and dissemination.” The agency has pledged to resume normal operations once funding is restored, alongside notifying the public of any changes to the release schedule.
Adding to the complexities, Trump’s nominee to lead the BLS, EJ Antoni, withdrew his nomination earlier this week. His candidacy faced bipartisan criticism over concerns regarding his qualifications and perceived partisanship, further complicating the agency’s leadership during this critical period.
The lack of timely economic indicators like the jobs report creates an environment of uncertainty for businesses and investors. With vital economic metrics delayed, the path forward for the US economy remains unclear as stakeholders await clarity on employment trends and inflation data.
