National Review Online
Monday, August 04, 2025
‘How many people do you employ this month?” might sound
like the kind of question an employer can easily answer, but it’s not.
Especially for large businesses, the exact number of employees in a given month
is hard to pin down. The media report layoffs and hires in round numbers, but
for calculating total employment in the country, it really matters whether
“500” means 478 or 523, because those discrepancies multiplied across millions
of businesses make a huge difference.
The Bureau of Labor Statistics sends a survey to
employers each month to figure out how many people they employ, as part of the
jobs report. In the good old days before Covid, that survey had a response rate
of about 60 percent. From respondents’ guesses about how many people they
employ, the BLS had to guess about how many people are employed in this nation
of 340 million souls.
That’s a really hard job. The BLS employs some of the
best statisticians in the world, and they happen to be pretty good at it, often
getting within a tenth of a percent of the final workforce numbers.
Then, Covid happened, and the establishment survey
response rate dropped like a rock. It hasn’t recovered and currently sits at 43
percent. What was already hard at a 60 percent response rate is now even
harder.
The problem of falling response rates has been well known
for years, even before Covid. “The quality of data from household surveys is in
decline,” said a paper published in the fall 2015 issue of the Journal of
Economic Perspectives, because “households have become increasingly less
likely to answer surveys at all” and “those that respond are less likely to
answer certain questions.”
Within government, Donald Trump’s appointee as BLS
commissioner, William Beach, has been a leader in calling for modernizing the
surveys that statistical agencies rely on. As commissioner from 2019 to 2023,
Beach asked Congress for several million dollars in funding — peanuts, in
federal budget terms — to redo the survey along the lines of other countries
such as the U.K., which now uses an online-first methodology. It never came to
be.
Beach organized a letter to Congress and the executive
branch signed by numerous statistical experts in February of this year
outlining the long-running problems statistical agencies have been facing.
Budgets have not kept up with costs that are out of the agencies’ control, and
staff who were doing vital work have been cut. Neither Congress nor the
administration took action.
Beach has called Trump’s firing of his successor, Erika
McEntarfer, “totally groundless,” and he’s correct. The issues with jobs
reporting are not about politics or McEntarfer’s competence. In fact, they are
exactly the kind of thing that an administration committed to technological
modernization and government efficiency should find to be in its wheelhouse. And
there’s no reason to think this particular jobs report was any more flawed than
any other.
McEntarfer was not standing in the way of this
modernization. Trump was mad about the jobs report, so he fired her.
He made this abundantly clear in a Truth Social post less
than an hour after the one announcing McEntarfer’s firing, where he called the
jobs numbers “rigged” against Republicans. So biased, apparently, that Vice
President Vance was referring to them approvingly on social media mere hours
beforehand.
There’s no consistent partisan bias at work here, as was
demonstrated last year when the same BLS that Trump said was pro-Democrat for
issuing downward revisions of earlier jobs reports under Biden issued the
weakest jobs report of the year right before the presidential election. The job
is hard when done well, and it’s been getting harder to do well.
Trump is now claiming the downward revisions of earlier
jobs reports under Trump are a sign of political bias, even though that
means it was initially making him look better. He says so because he
wants the Federal Reserve to cut interest rates, and weakening job performance
makes that more likely.
No one should have to take these tantrums seriously, but
firing the BLS commissioner is serious. The integrity of United States
statistics is important not just for the government, but for the private sector
as well. And these reports are relied upon around the world, not just in the
U.S. The goal should be to get them right, not make them more favorable to the
president.
Trump is shooting the messenger of bad economic news, not
unlike when China discontinues inconvenient data series that make the Communist
Party look bad. The BLS will continue to do its work, but now under a justified
cloud of speculation that it is manipulating data to avoid Trump’s wrath. And
the economy itself is what it is, no matter how the statistics are reported.
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