Editorial: Job market revisions shows BLS needs a shake-up

The Bureau of Labor Statistics appears to be auditioning for a new magic show on the Vegas Strip Its show-stopping trick is making nearly million jobs disappear On Tuesday the bureau disclosed its annual revision to yearly employment information From April to March the economic activity added fewer jobs than previously revealed That means the market system gained only around jobs during that time That s more than a reduction from previous estimates The agency had a major miss last year as well In its annual revision lowered the number by A few level of change is normal For its monthly statistics the bureau relies on employment surveys which have a response rate challenge Also the monthly statistics uses assumptions regarding businesses that opened and closed The annual figures is based on information from state unemployment offices But misses of this magnitude are remarkable It represented a - adjustment Over the past decade the absolute value of the average annual adjustment has been As a percentage this was the biggest miss since Having accurate employment figures remains vital Companies need reliable information to identify the best stake opportunities It gives individual voters a picture of how the broader market system is performing potentially informing their personal employment decisions It s a factor the Federal Reserve considers when setting interest rates Employment information is often used by elected administrators as a proxy for the success of their economic policies or the failure of their opponents plans It should be noted that Joe Biden was president during the bulk of this period This new facts shows the Biden business activity was even weaker than previously thought The agency s defenders claim it necessities more funding and staffing Given how Biden blew out the federal budget in so a large number of areas that s not a satisfying explanation This revision shines a different light on President Donald Trump s firing of the former BLS director Erika McEntarfer At the beginning of last month he removed her after a overview established a slowdown in hiring At the time several condemned the move as political and that was a legitimate concern It looks more justified now But pointing out a concern and fixing it are two different things Time will tell if Trump s nominee to lead the bureau E J Antoni who has been critical of the agency can turn things around But there should be little disagreement that an overhaul is necessary Las Vegas Review-Journal Tribune News Operation Editorial cartoon by Gary Varvel Creators Syndicate