The Labor Department’s internal watchdog says it is initiating a review of how the Bureau of Labor Statistics (BLS) compiles economic data.
In a letter dated Wednesday, Laura Nicolosi, an assistant inspector general for the Labor Department, said the investigation will focus on how the bureau collects and reports the monthly consumer price index (CPI), producer price index (PPI) and employment data.
The letter was addressed to acting BLS Commissioner William Wiatrowski, who has led the agency since President Trump fired former BLS Commissioner Erika McEntarfer last month, alleging without evidence she had “faked” jobs numbers.
In recent months, the BLS has curtailed its data collection activities for the CPI in certain regions and the PPI in some categories of products, citing a lack of resources for collecting the information.
The CPI and PPI are used to calculate inflation, with the former averaging price changes for select products and the latter averaging price changes for the entire domestic market of raw goods and services.
The watchdog’s letter this week also acknowledged BLS’s Tuesday announcement that the U.S. economy added 911,000 fewer jobs for the year through March than it initially reported.
On Tuesday, Labor Secretary Lori Chavez-DeRemer said in a statement the revisions give the public “even more reason to doubt the integrity of data” published by the BLS.
“We’re committed to finding solutions to these problems, including by modernizing to improve transparency and deliver more accurate and timely data for American businesses and workers,” Chavez-DeRemer added.
The Labor Department’s inspector general is independent of the agency and “conducts audits to review the effectiveness, efficiency, economy, and integrity of all DOL programs and operations,” according to its website.
The acting deputy inspector general of the Labor Department, Michael Mikulka, is heading the department, according to its website. Mikulka assumed the post in July.
Trump last month ordered McEntarfer’s firing, citing BLS’s revisions of job numbers from May and June.
As her replacement, Trump nominated E.J. Antoni, a MAGA loyalist with a history of provocative comments on social media and cable news, according to multiple reports. Antoni’s nomination is subject to Senate confirmation.
The Hill has reached out to the Labor Department and BLS for comment on the letter.
