The tenure of Erika McEntarfer as the Biden-appointed Commissioner of the Bureau of Labor Statistics (BLS) has been marked by a series of significant missteps, leading to a dramatic decline in public confidence in this crucial governmental agency. The BLS is responsible for providing key employment data that inform critical decisions by policymakers and businesses alike. However, under McEntarfer’s leadership, the agency’s reputation has suffered due to consistent inaccuracies and lack of transparency.
During her time at the BLS, McEntarfer oversaw a pattern of optimistic job reports that were later revised downward — often with little fanfare:
- Today, the BLS announced a downward revision of May and June job figures, cutting a combined total of 258,000 jobs. This initial overstatement of employment figures enabled the Federal Reserve to maintain an aggressive policy of high interest rates, a decision that many economists now question.
- On June 6, The New York Times reported that a strong May jobs report had bolstered the Federal Reserve’s position to delay interest rate cuts.
- Similarly, on July 3, The New York Times indicated that the June job numbers supported the Federal Reserve’s stance of not rushing to lower borrowing costs.
- Last year, the BLS revised its benchmark payroll growth for the year ending March 2024 downward by a staggering 818,000 jobs — the second-largest revision in history.
- The Daily Caller noted: “Including monthly revisions, the Biden administration overstated job growth in the U.S. by 1.18 million in the year through March, which accounted for approximately 36% of the originally reported 3.24 million jobs.”
- In July 2024, the BLS revised the jobs added in May downward by 54,000 and those for April by 57,000.
- In April 2024, the BLS revised the jobs added in February further downward in the following month.
- In February 2024, the BLS revised the job growth figures for December down by 43,000 and for January down by 124,000.
- Bloomberg, 11/15/24 reported that two prominent Senate Republicans criticized the BLS for its significant revisions, stating the agency’s “continued failures” in producing essential economic data. A preliminary annual revision in August suggested that job growth over the previous 12 months would see a downward adjustment of more than 800,000 — the largest such revision since 2009.
- Bloomberg, 6/6/24 observed that data from the BLS indicated payroll growth might have been about 60,000 jobs less per month than the previously stated average of 250,000.
- The Heritage Foundation, 5/3/2024 highlighted a discrepancy in the BLS’s reporting, noting a substantial drop in private payrolls despite an earlier report suggesting a significant increase.
McEntarfer’s leadership also witnessed a series of technical issues and data leaks that raised further concerns:
- The Washington Post, 8/28/24 reported that a technical glitch resulted in delayed releases of jobs data, which is vital for economic forecasting and political strategies. This incident was not isolated; it was one of several blunders in the year that critics argue could damage the agency’s credibility.
- According to the same source, this lapse occurred when the Federal Reserve was signaling a potential shift in its interest rate policy, further emphasizing the stakes involved in the accurate dissemination of employment data.
- Reports indicated that significant revisions to job numbers were posted on a government website significantly later than scheduled, raising concerns that select financial firms received the information before it became public — a serious breach of the agency’s commitment to equal access to information.
- House Committee on Education and the Workforce, 12/10/24 noted several incidents:
- In March 2024, it was revealed that a BLS economist had shared unpublished information with Wall Street firms.
- On May 15 2024, the BLS mistakenly published data files on its website 30 minutes ahead of their scheduled release.
- On August 21 2024, select Wall Street firms gained access to job numbers before they were made public, raising ethical concerns about fairness in data accessibility.
- On August 26 2024, congressional leaders criticized the administration for exaggerating job growth, as revisions indicated a significant overestimate.
- On September 25 2024, the House Committee sought accountability for the BLS’s inability to ensure timely and uniform data releases.
- On October 25 2024, following a lack of response from the BLS, the Committee renewed its oversight inquiry into the agency’s operations.
