The revision of non-farm data is due to two main reasons, but not caused by manipulation by the previous government party.
Analysts pointed out that, including the July non-farm data, the deviation between the initial and final values of the labor market correction has indeed widened, and there are two main reasons behind this: one is the continuous shrinking of the budget of statistical agencies. According to media estimates, after adjusting for inflation, the BLS budget has been cut by 20% since 2010, and will be reduced by another 8% by 2026. This is a global phenomenon - cutting statistical funding poses the least political risk and is unlikely to trigger large-scale protests. The second reason is the decrease in survey response rates. Before the pandemic, the BLS employment survey response rate was about 60%, but now it is only slightly above 40%. While there are indeed issues with data quality, they are not caused by manipulation from the previous government party.
Latest
2 m ago