What's happened
Recent US labor market data shows a slowdown, with initial unemployment claims rising to the highest since October 2021. The Bureau of Labor Statistics (BLS) faces criticism after revising job creation figures downward by 911,000, raising concerns over data accuracy and political influence. The firing of BLS head McEntarfer highlights tensions over data integrity. Today's date & time: Thu, 18 Sep 2025 14:25:38 +0100.
What's behind the headline?
The recent downward revision of 911,000 jobs by the BLS exposes significant flaws in US economic data collection. This revision suggests that the labor market has been far weaker than previously reported, which has profound implications for monetary policy and economic forecasts. The firing of McEntarfer, amid accusations of data manipulation, underscores political interference and erodes trust in official statistics. The potential bias within the BLS, given its staffing and funding issues, raises concerns about the reliability of economic indicators that influence policy decisions. The Federal Reserve's recent signals of possible rate cuts are now based on data that may be fundamentally flawed, risking misjudged monetary policy that could either stifle growth or fuel inflation. The push for reform, including the appointment of E.J. Antoni, aims to restore credibility but highlights the ongoing struggle to maintain data integrity in a politicized environment. The broader consequence is a potential misalignment between economic reality and policy, which could hamper effective responses to economic challenges and undermine investor confidence.
What the papers say
The contrasting opinions from Bloomberg and the New York Post highlight the depth of controversy surrounding the BLS data. Bloomberg emphasizes the technical flaws and political implications, quoting experts who warn that the revisions 'suggest the economy is weakening' and that the data 'has been far less robust than reported earlier.' Conversely, the New York Post focuses on the political narrative, accusing the BLS of overestimating job growth to favor certain administrations and calling the revisions a 'national embarrassment.' Both sources agree that the revisions are significant, but Bloomberg presents a more analytical perspective on the systemic issues, while the Post frames it within a political controversy. This divergence underscores the ongoing debate about the integrity of US economic data and the influence of political motives on official statistics.
How we got here
The US labor market has experienced fluctuations over the past year, with initial claims and job reports showing signs of weakening. The BLS has revised its employment data downward, revealing that job growth was overstated by nearly a million in the year ending March 2025. These revisions follow political tensions, including the firing of BLS head McEntarfer after a disappointing jobs report, and raise questions about data integrity amid ongoing scrutiny of the agency's funding and methodology.
Go deeper
Common question
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Is the US Jobs Market Slowing Down?
Recent reports suggest that the US labor market might be cooling off, with rising unemployment claims and downward revisions in job creation data. But what's really happening behind the headlines? Are these signs of a slowdown, or is there more to the story? Below, we explore the latest data, political influences, and what it means for workers and the economy.
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Why Are US Job Numbers Being Revised Downward?
Recent revisions to US labor market data have sparked widespread interest and concern. The Bureau of Labor Statistics (BLS) has revised its job creation figures downward by nearly a million, raising questions about the accuracy and reliability of official economic data. These revisions come amid rising unemployment claims and political tensions surrounding the agency. Many wonder what these changes mean for the economy and how they might influence policy and markets. Below, we explore the key questions about these revisions and their implications.
More on these topics
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The Bureau of Labor Statistics is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics and serves as a principal agency of the U.S.
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The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Erika Lee McEntarfer is an American labor economist who served as the commissioner of labor statistics from 2024 to 2025.
McEntarfer graduated from Bard College with a bachelor's degree in social science and from Virginia Tech with a doctorate in economic