IG to review how BLS compiles inflation and jobs data

The Labor Department’s inspector general said Wednesday it will launch a review of how the Bureau of Labor Statistics compiles and reports the nation’s headline inflation and jobs data, a move prompted by a record downward revision that cut 911,000 jobs from annual estimates and renewed scrutiny of the agency’s methods and resources. The audit, described in a letter to acting BLS commissioner William J. Wiatrowski, will examine challenges the bureau faces collecting and reporting consumer and producer price indexes and monthly employment figures, the inspector general’s office said.

The review follows the BLS’s annual revision released Tuesday that showed the economy added far fewer jobs in 2024 and early 2025 than previously reported. The initial monthly employment estimates are based on surveys of roughly 120,000 businesses; they are subsequently revised using employer payroll records filed quarterly with state unemployment tax offices. The inspector general’s memo cited recent cuts to data collection for inflation measures and large downward revisions to employment figures as reasons for the audit.

The inspection is unfolding amid a politically charged debate over the...