Government Shutdown Threatens Crucial Economic Data Release

The U.S. Labor Department warns of suspending economic data releases, including the pivotal September employment report, due to a potential partial government shutdown. This comes amid funding concerns and leadership changes that threaten data quality, essential for Federal Reserve and business decision-making.

The U.S. Labor Department announced on Monday that, should a government shutdown occur, it will suspend economic data releases, notably the crucial monthly employment report for September. This report significantly influences decision-making for the Federal Reserve, businesses, and households, and is typically released on a Friday.

With government funding set to expire at midnight on Tuesday unless Congress agrees on a stopgap spending deal, crucial activities at the Bureau of Labor Statistics would halt. On Monday, President Donald Trump met with Republican and Democratic leaders to discuss potential resolutions.

The possible delay in publishing the employment report arises during a period when the quality of government economic data is under scrutiny. The Bureau of Labor Statistics, faced with years of underfunding and staffing issues, is further troubled by the proposed appointment of E.J. Antoni, a Heritage Foundation economist criticized for being unqualified, to its leadership.

(With inputs from agencies.)