Democratic Senator Elizabeth Warren is urging the Trump administration to publish the September jobs report on Friday, notwithstanding the current government shutdown. The monthly jobs report, represents a pivotal component of US economic data disseminated on a monthly basis. The significance of this issue has intensified, particularly in light of apprehensions regarding fragility in the labor market and the escalating unemployment rate. The labor data for September has been collected and is expected to be ready for release.
“Let’s be clear: the jobs data scheduled to come out this Friday has undoubtedly been collected and the President must release it,” Warren stated. “In the absence of this information, the Federal Reserve will lack the comprehensive understanding required to make informed decisions regarding interest rates this month, decisions that will affect every household nationwide.” The Federal Reserve’s upcoming two-day policy meeting is set for October 28 and 29. A contingency plan released earlier this week by the Labor Department indicates that significant economic data, particularly the crucial jobs report, will not be published during the government shutdown due to the BLS being inactive. Should the shutdown extend for a significant duration, it will consequently postpone both the collection and dissemination of two critical inflation reports scheduled for release in mid-October. On Tuesday, Warren addressed a letter to William Wiatrowski, the acting commissioner of the BLS, and Russ Vought, the budget chief under Trump, urging that the jobs report be released on Friday as originally planned.
“While the data has been processed and there was time to prepare for the data’s release in the event of a government shutdown, the Administration is choosing not to release Friday’s jobs report,” Warren articulated in a letter. Warren referenced remarks made by William Beach. Beach stated on Wednesday that the September data has “been collected and processed.” Beach stated that “The jobs report is likely in its final draft stage and may be released on Friday, contingent upon the agency’s reopening.” The White House attributed responsibility for the shutdown to the Democrats. “Businesses, families, policymakers, and markets depend on timely and accurate public data for their decision-making, and it’s unfortunate that Democrats are disrupting our economy by shutting down the government to advocate for benefits for illegal immigrants,” White House spokesman Kush Desai stated. While the Democrats are establishing a clear boundary regarding health care, it does not encompass undocumented immigrants.
The shutdown is creating an information void, disrupting essential government data that investors, economists, CEOs, and Fed officials depend on for decision-making. Alongside the monthly BLS data concerning employment and inflation, the Bureau of Economic Analysis, a federal entity within the Commerce Department, announced on Wednesday that it must halt operations until Congress allocates funding for the current fiscal year. The agency indicated that the suspension will hinder the dissemination of BEA economic data that was set to be published amid the shutdown. This encompasses import and export statistics scheduled for release on October 7, along with the potential announcement of gross domestic product and inflation figures at the month’s conclusion.
The shutdown may compel investors and Federal Reserve officials to depend on alternative data sources to glean insights regarding the state of the US economy. A report indicated that private-sector payrolls unexpectedly declined last month, implying that weakness in the job market persisted into September. Although the ADP report has historically shown a mixed ability to forecast the broader BLS report, the recent shutdown has compelled investors to assign greater significance to the ADP report. Warren stated, “Donald Trump has the power to ensure that the federal government can continue producing and releasing this critical information on Friday and beyond during his shutdown.”