Editor's Note
The government shutdown has halted operations at the Bureau of Labor Statistics (BLS), delaying the release of crucial economic data at a time when job growth is already faltering, Newsweek October 1 reports.
The BLS confirmed it will suspend all data collection and reporting during the shutdown, including its closely watched “Employment Situation” report. That release, which had been scheduled for October 3, was expected to show another month of sluggish job growth and steady unemployment at 4.3%. Forecasts had projected just 50,000 new jobs in September, a modest improvement over August’s disappointing 22,000 but still well below historical averages. Recent revisions have further highlighted labor market weakness, with June figures adjusted downward into negative territory.
The jobs report is a critical benchmark for markets and the Federal Reserve, shaping monetary policy decisions. Analysts told Newsweek that another soft reading would deepen concerns about a persistent slowdown in employment conditions, which has already weighed on consumer confidence. The Conference Board recently reported that households are increasingly anxious about deteriorating job prospects.
The impact of the shutdown extends beyond labor data. The Department of Commerce confirmed economic indicators from the Census Bureau will be delayed, while the Bureau of Economic Analysis will halt operations altogether. Depending on how long the shutdown lasts, the Consumer Price Index, a key inflation measure due October 15, could also be postponed.
Past shutdowns provide some precedent. During the 16-day shutdown in 2013, BLS operations were suspended, resulting in weeks of delays, though data quality ultimately remained intact. In contrast, the 2018–2019 partial shutdown allowed the Department of Labor to continue releasing most reports because it had secured prior funding. No such appropriations bills were passed this time, leaving the BLS fully shuttered.
The political stakes are high. Weak labor data has already created challenges for President Donald Trump, and Brendan Greeley of the Financial Times told MSNBC the monthly jobs report is “the single most important piece of economic information that we get,” both for markets and for the public. The suspension of such data, he added, interrupts a vital signal for policymakers and investors alike.
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