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US funding lapse to halt Labor, Commerce departments’ data activities
Prolonged shutdown could impact third-quarter US GDP estimate
September jobs data, August trade and construction data among first shutdown casualties
Social Security Cost of Living Adjustment may be delayed if CPI report is postponed
By Lucia Mutikani
The employment report, crucial for decision-making by officials at the Federal Reserve, businesses and households, is scheduled for Friday. Government funding will expire at midnight on Tuesday unless Republicans and Democrats agree to a last-minute temporary spending deal.
The Labor Department identified the Bureau of Labor Statistics as among the key agencies whose activities would cease during a lapse in funding. President Donald Trump was due to meet with Republican and Democratic leaders on Monday.
While it would suspend some activities, the statistical agency said it would publish the August Metropolitan Area Employment and Unemployment report due on Wednesday.
Similarly, the Commerce Department said monthly economic indicators from the U.S. Census Bureau would not be available in the event of a government shutdown. The department’s Bureau of Economic Analysis would cease most services.
The Census Bureau is scheduled to release U.S. construction spending data for August on Wednesday and manufacturers’ shipments, inventories and orders for August on Thursday.
The two agencies are scheduled to release data on August international goods and services trade on October 7. A prolonged shutdown could impact the Bureau of Economic Analysis’ initial estimate of third-quarter gross domestic product due on October 30.
BLS also said a prolonged shutdown could delay the release of other data.
“Once funding is restored, BLS will resume normal operations and notify the public of any changes to the news release schedule on the BLS release calendar,” the agency said in a statement.
It was not clear whether the weekly jobless claims report would continue to be published. The data is collected by states, which run the unemployment insurance programs, but the BLS does the seasonal adjustment.
CONCERNS ARE RISING OVER DATA QUALITY
Possible delays publishing the employment report would come at a time when concerns are growing over the quality of government-produced economic data, long viewed as the gold standard.
The BLS warned “a reduction in quality of data collected might impact the quality of future estimates produced.”
The BLS has suffered years of underfunding under both Republican and Democratic administrations. That situation has been worsened by mass firings, voluntary resignations, earl
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