Government Shutdown Looms: Labor Department Prepares for Data Blackout
The U.S. Labor Department is bracing for a potential shutdown, releasing a contingency plan Friday outlining a suspension of most programs and operations. A key consequence of this shutdown would be a halt to the release of critical economic data, impacting investors and Federal Reserve policymakers.
According to the 73-page plan, the Bureau of Labor Statistics (BLS) will suspend all operations, meaning scheduled economic reports will not be published. This is particularly meaningful as several important releases are imminent.
Specifically,the BLS is scheduled to release the monthly nonfarm payrolls report this Friday,a report closely watched given recent signs of slowing job growth. Weekly initial jobless claims, also released by the department, will also be paused. Perhaps most crucially, the Consumer price Index (CPI) – a key measure of inflation – is due on October 15th, representing the last inflation reading the Federal Reserve will receive before their October 28-29 meeting.
Beyond simply delaying releases, the BLS will also cease all data collection activities, potentially leading to further delays in future reports.The BLS website will not be updated or maintained during the shutdown,even in the event of technical issues.
The BLS typically publishes around a dozen economic reports monthly,covering areas like import/export prices,wages,and consumer activity. The suspension of these reports will create a significant details gap for those monitoring the health of the U.S. economy.
