US Labor Department To Halt Key Jobs Data If Government Shuts Down

2025-09-29 03:16:01

(MENAFN- Live Mint) The US Labor Department said on Monday (September 29) its Bureau of Labor Statistics (BLS) will suspend the release of economic data - including the critical September employment report - if Congress fails to avert a government shutdown this week.

The monthly jobs report, a key gauge of labor market health used by the Federal Reserve, businesses, and households, is scheduled for release on Friday. However, government funding is set to expire at midnight on Tuesday unless lawmakers strike a last-minute deal.

Shutdown impact on data flow

The Labor Department identified the BLS as among the agencies whose activities would cease in a shutdown. The BLS confirmed it would suspend“data collection, processing, and dissemination” during a lapse in funding, though it plans to publish the August Metropolitan Area Employment and Unemployment report on Wednesday as part of contingency procedures. A prolonged shutdown could delay additional reports.

It remains unclear whether the weekly jobless claims report will continue. While data collection is handled by states, the BLS manages the seasonal adjustment.

Concerns over data quality

The potential disruption comes amid mounting concerns over the reliability of US economic statistics, which have long been considered the global gold standard. The BLS has faced years of underfunding under both Republican and Democratic administrations, a situation intensified by what officials describe as an unprecedented downsizing push by the Trump administration.

Mass firings, voluntary exits, early retirements, and hiring freezes have reduced staff capacity, forcing the agency to suspend some data collection, including portions of the consumer price index in certain regions. Response rates for the jobs report have also declined.

Broader consequences

If the September consumer price index report is delayed, it could prevent the Social Security Administration from announcing its annual Cost of Living Adjustment on time, potentially leaving retirees unable to plan their household budgets.

(With Reuters inputs)

Also Read | US government shutdown looms: What it means and what to expect from Trump's meet

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