The widespread availability of data has significantly benefited businesses and consumers over the past five decades, improving understanding of the world, stabilizing markets, and advancing disaster planning and medicine. However, this data revolution is currently at risk, particularly concerning government-produced statistics that serve as foundational information for various industries.
A decline in this core information could lead to a less informed economic environment, potentially resulting in significant errors in decision-making by entities ranging from the Federal Reserve to individual households.
Bureau of Labor Statistics Faces Challenges
The Bureau of Labor Statistics (BLS), a key source of US jobs, prices, and other market data for over a century, has recently encountered difficulties. These include a stagnant budget, a reduction in survey responses from individuals and businesses, and a need to update data-gathering methods. The American Statistical Association concluded in a December 2025 report that these strains risk the nation's statistical data infrastructure, which is vital for sound policy and economic growth.
Concerns intensified for BLS users over the past year due to two notable events:
Commissioner Firing
In July, President Donald Trump dismissed BLS Commissioner Erika McEntarfer following revisions to that month's jobs report. Although revisions are a standard part of the BLS process and the adjustments were within historical norms, economists, including Jed Kolko of the Petersen Institute for International Economics and Skanda Amarnath of Employ America, voiced concerns about potential political interference with economic data and its impact on public trust.
Government Shutdown Impact
The 43-day government shutdown in October and November resulted in the unprecedented suspension of crucial employment and inflation surveys. This led to the first gap in the modern unemployment rate's history (dating back to 1948) and the consumer price index's first unpublished period since its modern form was devised in 1947.
While the private sector attempted to provide alternative data during this period, such as ADP's Employment Report, these sources were largely inadequate due to their limited reach and resources compared to federal agencies. Private surveys often rely on federal statistics as benchmarks, making their quality dependent on public data.
In January, Brett Matsumoto, a former BLS economist, was nominated as the new BLS commissioner. Economists generally welcomed this appointment, viewing it as a positive step towards addressing the agency's issues. However, significant challenges remain. The BLS workforce decreased by 13% between 2024 and early 2026. Additionally, the agency suspended Consumer Price Index (CPI) data collection in several cities, which could impact the precision of inflation figures, particularly for communities where prices differ from larger metropolitan areas.
Broader Government Data Concerns
The potential for a less-informed future extends beyond the BLS. Other federal agencies are also facing data challenges:
Commerce Department
In June, the Commerce Department disbanded 14 advisory committees, including three at the Census Bureau, which had assisted in modernizing data collection and planning for the 2030 decennial census.
Climate Change Data
Several government databases on climate change have been removed or suspended, potentially hindering access to critical information for sectors like agriculture and real estate.
The American Statistical Association's report identified dozens of discontinued or curtailed data sets from BLS and other federal agencies in the last two years. These include cuts to underlying tables for GDP calculations, the suspension of tracking over 350 products for the Producer Price Index, changes to the Survey of Income and Program Participation, and the end of the USDA's annual food insecurity survey. These cumulative reductions pose a risk of significant information loss.
Beyond federal agencies, proposals to change Securities and Exchange Commission (SEC) rules to require public companies to submit financial information semi-annually instead of quarterly could also lead to less timely information for investors and disrupt capital allocation.
Economic Implications of Data Degradation
The decline in data quality has broad economic consequences:
Federal Reserve
The Federal Reserve, which relies heavily on BLS data to manage employment and price stability, may face increased uncertainty in monetary policy decisions. The data gap during the government shutdown reportedly contributed to internal division at the Fed's October meeting. A less reliable data environment could hinder the Fed's ability to respond effectively to economic crises.
Businesses
A March 2025 survey by the Chicago Booth School of Business found that 90% of economic and business experts believe that lower quality economic data would substantially impair businesses' ability to forecast and plan.
Consumers
Individuals rely on economic data for career planning, such as job market conditions and expected wages. Less reliable data can distort public perception of the economy and complicate personal financial decisions.
The erosion of reliable information also contributes to a decline in public trust. An August 2025 Economist/YouGov poll indicated that 45% of respondents distrust federal economic data, with only 21% believing government unemployment figures are accurate.
A future with less data risks empowering misinformation and hindering the functioning of a well-informed capitalist economy. While the volume of data can be overwhelming, the solution is not to reduce data generation but to ensure its quality and accessibility.