“Politicizing federal statistics and questioning the integrity of those who produce them harms decision making in every sector.” Cecilia Rouse, President, Brookings Institution at "The Importance of Credible Government Economic Data to Business." September 18, 2025, https://www.brookings.edu/events/the-importance-of-credible-government-economic-data-to-business/.
Credible economic data is an incredibly relevant topic, vital not only for the business community but for all citizens. Indeed, when federal statistics are bent for politics, the cost ripples through every boardroom, newsroom, and household. Objective decision making relies on the best available data, especially federal data, to understand trends like employment and inflation, and to set expectations for the future. Thus, without trust in federal statistical reports and agencies, every decision relying on them suffers.
A Culture of Objectivity
The reliability and integrity of the Bureau of Labor Statistics (BLS), specifically, is critical.
The BLS has operated under a strict culture of objectivity. At a recent Brookings Institution event titled “the Importance of Credible Government Economic Data to Business,” former BLS Commissioner Erica Groshen recounted that even when the bureau faced a difficult budgetary environment during a sequester, the Obama administration allowed her to choose to a course of action with the goal of preserving the integrity of programs. She chose to eliminate three of the less central programs (Green Jobs, International Labor Comparisons, and Mass Labor Statistics), ensuring that the core measures remained untouched.
Furthermore at the event, former Commissioner William Beach emphasized that the process of generating frequent data is highly automated and "designed to be independent, to…not (have) even a place for interference." He reinforced this point with his own experience. When he once entered the jobs report room uninvited, as commissioner, the staff confronted him with “vile looks and pointed language” — a reaction that indicates just how fiercely they defend the data's independence.
Certainly, there hasn’t been, and shall not be, any room for political interference at the BLS and related statistical agencies.
The Threat of Decay
Currently, the federal statistical system is under immense strain. Since 2009, the BLS budget, adjusted for inflation, has decreased by 20%. The Trump administration has cut staffing down by
20% since February. Furthermore, a third of its top leadership positions are currently vacant. This lack of resources threatens the very modernization effort the Trump administration chases after.
Beach added to why this is so dangerous. The backbone of U.S. statistics, the probability sample survey, is collapsing. Today, initiation rates hover at only one in five people participating. Indeed, responses are lower than ever, even dipping below 30% in BLS surveys. With AI-generated phishing emails and fake “.org” websites on the rise, fears of fraud and identity theft discourage people from engaging through surveys.
Together, shrinking budgets, staff shortages, and collapsing response rates leave the statistical system struggling to keep up with a changing economy. Resources need to be restored to ensure the BLS’s legitimacy.
Private Data: A Complement, Not a Replacement
Some suggest that private sector data, generated by large companies, could replace government statistics. Yet federal data remain essential because they serve as a public good. By contrast, private data is usually designed to advance a company’s bottom line and often fails to capture the full economy, particularly its underrepresented sectors. Company data serves only the company’s interests. Unlike federal agencies, companies provide no assurance that their measures will be collected consistently or for the public interest.
And while it’s true that private data can be faster and add more detail/complement federal data, they absolutely cannot substitute for the official system.
Securing the Future of Data
To ensure the statistical system remains reliable, leaders must stop attacking the integrity of statistical employees. For those with a similar understanding as Cecilia Rouse and William Beach, the gravest danger is not underfunding but demoralization.
"It’s like attacking the captain of, of a sinking boat instead of fixing the hole in the boat, you’re all gonna sink" - William Beach, former BLS Commissioner, September 2025
Additionally, although it remains true that champions in Congress are needed, determined advocacy must also come from major donors and business elites. They are highly influential voices on Capitol Hill, and should also champion the federal statistical system by pushing for
modernization funding, resisting efforts to politicize civil service roles, and encouraging greater participation in surveys.
Concluding Thoughts
Tom Beers, head of the National Association for Business Economics, reminded the very same Brookings audience that statistics are not luxuries. “This is infrastructure for the economy. This is the plumbing of the economy.” Like pipes, they often go unnoticed — until they corrode. And when they do, every dependent system falters, from market forecasts to family budgets.
While the current federal statistical products are the best available, they could and should be much better, and continuous support for improvement is necessary.
The task is clear. Defend the data. Modernize the system. Treat economic statistics as the infrastructure they are. If leaders, businesses, and Congress fail to protect federal data’s reliability and integrity, the nation risks navigating its future with broken instruments. And as a final reminder, the consequences of this will reach far beyond Washington.