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Consumer price indexes

Government Shutdown Forces Bureau of Labor Statistics to Recall Employees to Produce Consumer Price Index Data

Strategic Insights

— 2 min read

The government shutdown is forcing the Bureau of Labor Statistics to recall a limited number of workers to produce the Consumer Price Index for September, in order to calculate the annual cost-of-living adjustment for Social Security beneficiaries. The data is crucial for determining the adjustment, which is based on inflation data from the third quarter. The Bureau of Labor Statistics has stopped all operations during the lapse in funding, but is recalling employees to release the consumer price data for September, which will be used to determine the adjustment. The decision to release the data is tied to the annual process of adjusting Social Security benefits to account for changes in the cost of living.

Key Takeaways:

  • The Bureau of Labor Statistics is recalling a limited number of workers to produce the Consumer Price Index for September, despite the federal government shutdown.
  • The data is necessary to calculate the annual cost-of-living adjustment for Social Security beneficiaries, which is based on inflation data from the third quarter.
  • The shutdown already delayed the release of the closely watched monthly jobs report last week.
  • The inflation report was expected to be the next casualty before the statistical agency began calling back some employees back to work to produce the report.
  • Employees called back to work include economists and information technology specialists.
  • Data collection will remain suspended, which could lead to a delay in the next month's C.P.I. report.
  • The cost-of-living adjustment will be severely affected if the Consumer Price Index data is not collected and released by Nov. 1.
  • Social Security payments continue during the shutdown, but accurate payments depend on the release of the C.P.I. data.
  • The recalled B.L.S. employees will work only on the September inflation release.
  • The statistical agency is currently led by William J. Wiatrowski, the deputy commissioner, who took over on an acting basis after President Trump fired his Senate-confirmed commissioner.

Statistics:

  • The recall of a limited number of workers is focused on producing the Consumer Price Index for September.
  • The data is necessary to calculate the annual cost-of-living adjustment for Social Security beneficiaries, which affects over 62 million people.
  • The inflation report was expected to be delayed, but the recall of employees has ensured its release.
  • The raw price data used in the report has already been collected but must still be processed and analyzed.
  • The Bureau of Labor Statistics is recalling employees to release the consumer price data for September, which will be used to determine the adjustment.
  • The annual cost-of-living adjustment is based on inflation data from the third quarter.
  • Social Security payments continue during the shutdown, but accurate payments depend on the release of the C.P.I. data.

Sources:

  • Administration sources familiar with the plan
  • An administration official, who was not authorized to speak publicly
  • Tony Romm, contributor to the article
  • The Department of Labor, published contingency plan
  • The Bureau of Labor Statistics, led by William J. Wiatrowski, the deputy commissioner

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