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    Friday’s Jobs Report Will Be Confusing. Here’s How to Make Sense of It.

    The Labor Department’s January survey will include revisions making data for previous months look stronger in some cases and weaker in others.The Labor Department’s latest monthly report on hiring and unemployment will include revisions for previous months that should give a more accurate picture of the U.S. job market — but that could also sow confusion.When the data is released on Friday, one major measure of employment will be revised up. Another will be revised down. Some historical numbers will be revised, but others won’t. And the updates, though part of a routine process, will be taking place in a political environment where both sides have at times expressed skepticism of government economic statistics.“There is going to be a massive amount of confusion,” said Wendy Edelberg, director of the Hamilton Project, an economic policy arm of the Brookings Institution.Here is what economists say you will need to know about the revisions to make sense of the numbers.The revisions are part of a longstanding annual process.The monthly job figures are based on two surveys, one of employers and one of households. Those surveys are generally reliable — they involve a number of interviews far larger than a presidential election poll, for example — but they aren’t perfect. And so, once a year, the government reconciles the numbers with less timely but more reliable data from other sources. Similar processes are in place for revising other government statistics, like gross domestic product and personal income.“Revisions are how statistical agencies achieve both timeliness and accuracy,” said Jed Kolko, who oversaw economic statistics at the Commerce Department during the Biden administration. “Near-real-time data like the jobs report later get revised to match other data sources that are more accurate but take longer to collect and publish.”The revisions being released on Friday were scheduled far in advance and will use methodologies that were announced ahead of time, allowing economists, including Mr. Kolko and Ms. Edelberg, to publish detailed forecasts of what the new figures will show.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Everybody Loves FRED: How America Fell for a Data Tool

    From Facebook political debates to college classrooms, the St. Louis Fed’s data tool has gained a major following.Fans post about him on social media. Swag bearing his name sells out on the regular. College professors dedicate class sessions and textbook sections to him. Foreign government officials have been known to express jealousy over his skills, and one prominent economist refers to him as a “national treasure.”Meet FRED, a 33-year-old data tool from St. Louis, Mo., and the economics world’s most unlikely celebrity.Even if you have not interacted with FRED yourself, there is a good chance you’ve encountered him without knowing it. The tool’s signature baby blue graphs dot social media and crop up on many of the world’s most popular news websites. (Paul Krugman, an opinion writer for The New York Times, has referred to FRED as “my friend.”)Many people feel that way about FRED. The website had nearly 15 million users last year, and it is on track for even more in 2024, up from fewer than 400,000 as recently as 2009. Their reasons for clicking are diverse: FRED users are coming for freshly released unemployment data, to check in on egg inflation or to find out whether business is booming in Memphis.The Federal Reserve Bank of St. Louis building.Kate Munsch for The New York TimesThat appeal crosses political lines. Larry Kudlow, who directed the National Economic Council during the first Trump administration, has tweeted and retweeted FRED charts. Groups as disparate as the spending-focused Alaskans for a Sustainable Budget and the pro-worker advocacy organization Employ America have used its charts to back up their arguments. It is even occasionally used by professional and White House economists, who tend to have access to sophisticated data tools, for quick charts.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    BLS Data on Jobs and Consumer Prices Faces a Test of Trust

    The Bureau of Labor Statistics, which tracks prices and employment, faces scrutiny after several missteps. Some questions have gone unanswered.It has been a rough year for the Bureau of Labor Statistics.The agency — which produces key numbers on inflation, unemployment and other aspects of the economy — has made a series of missteps in recent months, including a premature release of the Consumer Price Index.That has prompted questions about how the bureau, which is part of the Labor Department, shares information and whether it has been giving an unfair advantage to Wall Street insiders who can profit from it. The agency’s inspector general is looking into the incidents. So is at least one congressional committee.At the same time, the bureau — like other statistical agencies in the United States and around the world — is facing long-running challenges: shrinking budgets, declining response rates to its surveys, shifting economic patterns in the wake of the pandemic and increased public skepticism of its numbers, at times stoked by political leaders including former President Donald J. Trump.Economists and other experts say the bureau’s data remains reliable, and they praise the agency’s efforts to ensure its numbers are accurate and free of political bias. But they say the recent problems threaten to undermine confidence in the agency, and in government statistics more broadly.“A statistical agency lives or dies by trust,” said Erica Groshen, who served as commissioner of the Bureau of Labor Statistics during the Obama administration. Once that trust is lost, she added, “it’s very hard to restore it.”The agency recognizes that threat, its current leader says, and is taking it seriously.“We are under more scrutiny because the environment around the agency has changed,” Erika McEntarfer, the commissioner of the bureau, said in an interview.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    While the Public Awaited Jobs Data, Wall Street Firms Got a Look

    A report was delayed on the Bureau of Labor Statistics website, but some investors got it in the meantime, raising new questions about agency practices.For more than half an hour on Wednesday morning, economists and investors were stuck repeatedly refreshing their browsers, looking for a delayed report on the U.S. job market from a government website.Not everyone had to wait that long.A number of Wall Street investment firms obtained details about the report — which showed a large downward revision to job growth in 2023 and early 2024 — at least 15 minutes before the information was posted on the Bureau of Labor Statistics website. That head start could, at least in theory, have given in-the-know investors an opportunity to profit on the information before the public at large.It isn’t clear how many people got early access to the data, or whether anyone actually traded on it. Markets seemed to react little to the revision in jobs data either before or after the general release. But the episode was the latest in a series of incidents in which the agency provided information to investors that wasn’t available to the general public.In February, an employee of the labor bureau sent information about housing inflation — at the time, an issue of intense interest to many investors — to a group of “super users” that included a number of hedge funds. The information turned out to be inaccurate, but even if that had not been the case, agency leaders said, it was inappropriate to share information selectively.Then, in May, the agency said it had inadvertently posted data on the Consumer Price Index — one of the highest-profile monthly economic reports — 30 minutes before the scheduled release time. The files in question are closely monitored by Wall Street firms but not by less sophisticated users.Taken together, the incidents raise concerns about the agency’s handling of sensitive information, said Julia Coronado, founder of MacroPolicy Perspectives, a research firm with Wall Street clients.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. Added 818,000 Fewer Jobs Than Reported Earlier

    The Labor Department issued revised figures for the 12 months through March that point to greater economic fragility.The U.S. economy added far fewer jobs in 2023 and early 2024 than previously reported, a sign that cracks in the labor market are more severe — and began forming earlier — than initially believed.On Wednesday, the Labor Department said monthly payroll figures overstated job growth by roughly 818,000 in the 12 months that ended in March. That suggests employers added about 174,000 jobs per month during that period, down from the previously reported pace of about 242,000 jobs — a downward revision of about 28 percent.The revisions, which are preliminary, are part of an annual process in which monthly estimates, based on surveys, are reconciled with more accurate but less timely records from state unemployment offices. The new figures, once they’re made final, will be incorporated into official government employment statistics early next year.The updated numbers are the latest sign of vulnerability in the job market, which until recently had appeared rock solid despite months of high interest rates and economists’ warnings of an impending recession. More recent data, which wasn’t affected by the revisions, suggests job growth slowed further in the spring and summer, and the unemployment rate, though still relatively low at 4.3 percent, has been gradually rising.Federal Reserve officials are paying close attention to the signs of erosion as they weigh when and how much to begin lowering interest rates. In a speech in Alaska on Tuesday, Michelle W. Bowman, a Fed governor, highlighted “risks that the labor market has not been as strong as the payroll data have been indicating,” although she also said the increase in the unemployment rate could be overstating the extent of the slowdown.This year’s revision was unusually large. Over the previous decade, the annual updates had added or subtracted an average of about 173,000 jobs. Still, substantial updates are hardly without precedent. Job growth for the year ending March 2019, for example, was revised down by 489,000, or about 20 percent.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Reliability of U.S. Economic Data Is in Jeopardy, Study Finds

    A report says new approaches and increased spending are needed to ensure that government statistics remain dependable and free of political influence.Federal Reserve officials use government data to help determine when to raise or lower interest rates. Congress and the White House use it to decide when to extend jobless benefits or send out stimulus payments. Investors place billions of dollars worth of bets that are tied to monthly reports on job growth, inflation and retail sales.But a new study says the integrity of that data is in increasing jeopardy.The report, issued on Tuesday by the American Statistical Association, concludes that government statistics are reliable right now. But that could soon change, the study warns, citing factors including shrinking budgets, falling survey response rates and the potential for political interference.The authors — statisticians from George Mason University, the Urban Institute and other institutions — likened the statistical system to physical infrastructure like highways and bridges: vital, but often ignored until something goes wrong.“We do identify this sort of downward spiral as a threat, and that’s what we’re trying to counter,” said Nancy Potok, who served as chief statistician of the United States from 2017 to 2019 and was one of the report’s authors. “We’re not there yet, but if we don’t do something, that threat could become a reality, and in the not-too-distant future.”The report, “The Nation’s Data at Risk,” highlights the threats facing statistics produced across the federal government, including data on education, health, crime and demographic trends.But the risks to economic data are particularly notable because of the attention it receives from policymakers and investors. Most of that data is based on surveys of households or businesses. And response rates to government surveys have plummeted in recent years, as they have for private polls. The response rate to the Current Population Survey — the monthly survey of about 60,000 households that is the basis for the unemployment rate and other labor force statistics — has fallen to about 70 percent in recent months, from nearly 90 percent a decade ago.

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    Current Population Survey response rate
    Source: Bureau of Labor StatisticsBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    New Questions on How a Key Agency Shared Inflation Data

    A government economist had regular contact with “super users” in finance, records show, at a time when such information keenly interests investors.The Bureau of Labor Statistics shared more information about inflation with Wall Street “super users” than previously disclosed, emails from the agency show. The revelation is likely to prompt further scrutiny of the way the government shares economic data at a time when such information keenly interests investors.An economist at the agency set off a firestorm in February when he sent an email to a group of data users explaining how a methodological tweak could have contributed to an unexpected jump in housing costs in the Consumer Price Index the previous month. The email, addressed to “Super Users,” circulated rapidly around Wall Street, where every detail of inflation data can affect the bond market.At the time, the Bureau of Labor Statistics said the email had been an isolated “mistake” and denied that it maintained a list of users who received special access to information.But emails obtained through a Freedom of Information Act request show that the agency — or at least the economist who sent the original email, a longtime but relatively low-ranking employee — was in regular communication with data users in the finance industry, apparently including analysts at major hedge funds. And they suggest that there was a list of super users, contrary to the agency’s denials.“Would it be possible to be on the super user email list?” one user asked in mid-February.“Yes I can add you to the list,” the employee replied minutes later.A reporter’s efforts to reach the employee, whose identity the bureau confirmed, were unsuccessful.Emily Liddel, an associate commissioner at the Bureau of Labor Statistics, said that the agency did not maintain an official list of super users and that the employee appeared to have created the list on his own.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Email ‘Mistake’ on Inflation Data Prompts Questions on What Is Shared

    Traders are closely watching once-obscure economic data, prompting more scrutiny of how widely the government distributes the information.One afternoon in late February, an employee at the Bureau of Labor Statistics sent an email about an obscure detail in the way the government calculates inflation — and set off an unlikely firestorm.Economists on Wall Street had spent two weeks puzzling over an unexpected jump in housing costs in the Consumer Price Index. Several had contacted the Bureau of Labor Statistics, which produces the numbers, to inquire. Now, an economist inside the bureau thought he had solved the mystery.In an email addressed to “Super Users,” the economist explained a technical change in the calculation of the housing figures. Then, departing from the bureaucratic language typically used by statistical agencies, he added, “All of you searching for the source of the divergence have found it.”To the inflation obsessives who received the email — and other forecasters who quickly heard about it — the implication was clear: The pop in housing prices in January might have been not a fluke but rather a result of a shift in methodology that could keep inflation elevated longer than economists and Federal Reserve officials had expected. That could, in turn, make the Fed more cautious about cutting interest rates.“I nearly fell off my chair when I saw that,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics, a forecasting firm.Huge swaths of Wall Street trade securities are tied to inflation or rates. But the universe of people receiving the email was tiny — about 50 people, the Bureau of Labor Statistics later said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More