(The Center Square) — Lawmakers are launching an inquiry into the Department of Labor’s Bureau of Labor Statistics after it significantly overestimated the number of jobs created last year, creating a far rosier picture of the U.S. economy than was actually the case.
The federal government announced earlier this year that its previous jobs data had far overestimated how many jobs the U.S. economy created last year. In fact, the federal data was revised down by a third, or roughly 800,000 jobs, the largest revision since 2009.
Education and the Workforce Committee Chairwoman Virginia Foxx, R-N.C., and Health, Employment, Labor, and Pensions Subcommittee Chairman Bob Good, R-La., sent a letter to Acting Labor Secretary Julie Su demanding answers.
The jobs data is crucial for the economy, driving decision-making for the stock market and the U.S. Federal Reserve, who bases interest rate decisions of the data.
“The Harris-Biden Administration has been caught fraudulently manipulating Job Statistics to hide the true extent of the Economic Ruin they have inflicted upon America,” Trump said in a statement after BLS revised the numbers, as The Center Square previously reported. “New Data from the Bureau of Labor Statistics shows that the Administration PADDED THE NUMBERS with an extra 818,000 Jobs that DO NOT EXIST, AND NEVER DID.
“The real Numbers are much worse than that and, if Comrade Kamala gets another four years, millions more Jobs will VANISH overnight, and Inflation will completely destroy our Country.”
Slight revisions are normal for federal data, but how the data could be so far off has raised concerns.
“It’s troubling to see the Dept. of Labor issue an unusually large correction to last year’s jobs report,” Rep. Adrian Smith, R-Neb., wrote on X on Aug. 21, formerly known as Twitter, after the significant revision. “As unemployment rises, American workers need pro-growth action, not the stale policies of the Biden-Harris admin.”
Foxx also raised concerns that BLS allegedly gave advance notice to Wall Street firms about data that significantly drives market movement.
“BLS scheduled the release of the Job Numbers for 10:00 a.m. Eastern Daylight Time on August 21,” the letter said. “However, BLS did not release them at this time. BLS instead released them 30 minutes later. While the public waited for the release, BLS provided the Job Numbers in advance of the public release to some Wall Street firms.
“As a result, rumors circulated on Wall Street, with some analysts able to report the correct Job Numbers confidently and others spreading incorrect information. Trading volumes spiked around BLS’s delay. At best, BLS’s botched release of the Job Numbers caused significant uncertainty and confusion and undermined confidence in the data. At worst, BLS’s actions may have provided an unfair advantage to several firms.”
By Casey Harper |Â The Center Square
