The Deterioration of US Economic Data Collection: A Deep Dive

The Importance of Economic Data

• 💡 Official economic data is crucial for decision-making in markets and the broader economy, yet its collection process is often overlooked.
• 📌 The Bureau of Labor Statistics (BLS) produces vital reports like the jobs report and CPI, which are essential for understanding economic activity.

Challenges in Data Collection

• 📉 Response rates for key surveys like the Current Population Survey (CPS) and Jolts have significantly declined, impacting data quality.
• ⚠️ Factors contributing to this decline include survey complexity, respondent fatigue, and a general decrease in public willingness to participate in government surveys.
• 🌍 This is not solely a US problem, with similar trends observed in countries like the UK and New Zealand.

Rising Costs and Operational Strain

• 💰 The cost of conducting surveys, particularly the household survey, has increased substantially due to inflation and rising wage bills for skilled interviewers.
• 📊 The BLS budget has remained stagnant for years, making it difficult to cover escalating operational costs and invest in modernization.
• 💸 Efforts to find