The Bureau of Labor Statistics has taken steps to address issues that led to the release of key economic data at improper times in 2024, though a watchdog said it has more work to do in establishing safeguards.
A report by the Labor Department's inspector general looked at a trio of incidents in which economic data was either released early or late, or methodology was shared externally before it was made available to the public. In each case, BLS leaders didn't learn of the situation until up to an hour after they occurred.
BLS data for key reports like CPI inflation data and the benchmark revisions to the employment data that underlies the monthly jobs reports carries a great deal of significance for economic decision-makers and financial markets, and untimely or unauthorized releases could give some traders an advantage over their peers.
The report explained that the watchdog had identified shortcomings in procedures around data release processes, and the BLS inadequately emphasized the importance of equitable access to information and safeguarding internally-restricted materials. The IG said that the BLS' deviations from policy in those cases "negatively affected its reputation and credibility."
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In May 2024, the monthly consumer price index (CPI) data was published 31 minutes before it was scheduled to be released, while in August 2024 the publication of BLS' preliminary benchmark revision to employment data was delayed for 34 minutes even though it was provided to some users who reached out to the agency.
Additionally, internal or inaccurate methodology information was shared externally three times that year before it was published.
"In response to these incidents, BLS closed gaps in IT safeguards, revised performance standards, strengthened management oversight, and training," the IG report said.
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"However, we identified additional improvements BLS could make to reduce the risk of improper disclosure of essential economic information," the inspector general added.
"BLS still needs to update its testing procedures, clarify its recently updated policies and procedures, and ensure staff's compliance by improving buy-in, understanding of expectations, and accountability," the IG explained, adding that it should also finalize its crisis communications plans and perform related exercises to ensure staff are prepared for such scenarios.
Acting BLS Commissioner William Wiatrowski included a letter responding to the report which said that the results of the audit are "generally consistent with the previous reviews" aimed at guarding against early or unauthorized disclosures.
Wiatrowski explained that the IG's report acknowledges several of the corrective measures the BLS has undertaken, saying that in some cases the report and its recommendations "fail to recognize the totality of corrective measures taken or clarifying documentation provided."
"The OIG conclusion does not recognize that BLS has already strengthened IT testing, updated customer service policies, procedures and training, updated and disseminated the BLS Crisis Communication Plan to all BLS staff with defined roles and those staff have exercised said plan," he added.
The report comes as the BLS is scheduled to release the June jobs report on Thursday, rather than the usual Friday due to the observance of Independence Day.
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Economists polled by LSEG are projecting that the economy added 110,000 jobs in June, a figure that would mark the fourth straight month of steady job gains despite representing a deceleration from growth seen in the last three months.