• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
PoliticsDOGE

U.S. data quality has been declining for years. Now Trump’s cutbacks are leading economists to question its figures

Marco Quiroz-Gutierrez
By
Marco Quiroz-Gutierrez
Marco Quiroz-Gutierrez
Reporter
Down Arrow Button Icon
Marco Quiroz-Gutierrez
By
Marco Quiroz-Gutierrez
Marco Quiroz-Gutierrez
Reporter
Down Arrow Button Icon
June 13, 2025, 12:37 PM ET
President Trump has been a big driver of budget and staff cuts in the federal government.
President Trump has been a big driver of budget and staff cuts in the federal government.Anna Moneymaker—Getty Images
  • A key federal agency is increasingly publishing less accurate inflation data thanks in part to a hiring freeze issued by the Trump administration in January. The Bureau of Labor Statistics, which is part of the Labor Department, is increasingly relying on data collection methods that are less accurate than usual and has stopped tracking inflation figures in three U.S. cities.

Decades of declining quality and accuracy in federal statistics, exacerbated by President Donald Trump’s cuts, have economists questioning data that inform everything from the Federal Reserve’s decisions to Social Security payments for more than 70 million Americans.

Recommended Video

Since taking office in January, Trump has led efforts to cut down on the budgets and staff of government agencies. 

The Bureau of Labor Statistics, which collects data on hiring, inflation, and other areas, has faced a hiring freeze issued by the Trump administration in January, and an unclear reduction in staff. Additionally, Trump’s proposed 2026 budget would cut funding and staff at the BLS by a further 8%, Bloomberg reported.

The hiring freeze has already forced the agency, which creates the consumer price index that measures inflation, to cut back on the number of businesses where it checks prices, the Wall Street Journal reported, citing unnamed officials. In last month’s inflation report, which tracked April’s prices, the BLS said workers would no longer collect figures for three cities: Lincoln, Neb.; Provo, Utah; and Buffalo, N.Y. It also said it increasingly relied on less accurate data collection methods, or “different-cell imputation,” for the report.

The BLS collects data that inform its inflation report through field operators called enumerators, who go into brick-and-mortar stores to gather data on products and services. If the enumerators can’t find a specific product in a certain city, they record the price of a comparable product for a next-best estimate. Having fewer workers in the field means the BLS has to rely more than usual on its next-best estimates.

“BLS makes reductions when current resources can no longer support the collection effort. BLS will continue to evaluate survey operations,” the BLS wrote in a statement earlier this month.

The Labor Department, BLS’s parent agency, did not respond to a request for comment. 

Erica Groshen, a former BLS commissioner and current senior economics advisor at the Cornell University School of Industrial and Labor Relations, said Trump’s most recent cuts add to decades of the BLS struggling to publish accurate and detailed data despite budget cuts and political pressure. The agency’s budget is down by about 20% in real terms since 2009, she said.

“You have an institution that was already struggling a bit, and then you have this collateral damage on top of it,” Groshen told Fortune.

While the agency always strives to maintain accurate top-line numbers, such as the overall CPI number, more granular data could be drastically scaled back, to the detriment of those who rely on it. Inflation and employment data the BLS publishes affect everything from Social Security payments to business decisions to the availability of unemployment insurance benefits, she said.

“Social Security benefits are indexed to the current CPI,” Groshen told Fortune. “If the BLS makes a tenth-of-a-percentage-point mistake in the CPI, then Social Security beneficiaries will be overpaid or underpaid by a billion dollars.”

The ramifications of increasingly less accurate data could also be substantial for the Fed, wrote UBS Global Wealth Management chief economist Paul Donovan in a note. Although the central bank prefers to rely on the personal consumption expenditures index, it also monitors CPI and some employment numbers published by the BLS.

“Less understanding of U.S. inflation increases the chances of the Federal Reserve making a policy error (especially with the mantra of ‘data dependency’),” wrote Donovan.

Overall, Groshen said the BLS will likely continue to reduce the scope of its operations in order to maintain the quality of headline numbers such as CPI, yet this comes with a cost. The granularity of some statistics as well as programs that are useful for understanding causes and consequences of changes may be sacrificed.

“This is a choice that we as a country are making to fly blind, or to fly more blindly,” she said. “We could have a clearer windshield, but we are allowing it to be clouded.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Author
Marco Quiroz-Gutierrez
By Marco Quiroz-GutierrezReporter
LinkedIn iconTwitter icon

Role: Reporter
Marco Quiroz-Gutierrez is a reporter for Fortune covering general business news.

See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

The curse of Trump watching sports in person: the home team seems to always lose
Arts & EntertainmentDonald Trump
The curse of Trump watching sports in person: the home team seems to always lose
By The Associated Press and Will WeissertJune 10, 2026
15 minutes ago
‘I love the inflation’: Trump is ‘not concerned’ about inflation hitting 4% for the first time since 2023. ‘The numbers were great’
EconomyDonald Trump
‘I love the inflation’: Trump is ‘not concerned’ about inflation hitting 4% for the first time since 2023. ‘The numbers were great’
By The Associated Press and Christopher RugaberJune 10, 2026
2 hours ago
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI buildout
Future of WorkMeta
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI buildout
By Jacqueline MunisJune 10, 2026
3 hours ago
platner
PoliticsElections
Graham Platner easily prevails over attempts to derail progressive Senate candidacy in Maine
By Patrick Whittle, Kimberlee Kruesi and The Associated PressJune 10, 2026
7 hours ago
swiss
EuropeImmigration
Switzerland to cast world’s first ever vote on whether to cap population
By Jamey Keaten and The Associated PressJune 10, 2026
7 hours ago
A ‘MAGA Warrior’ Texas ag chief is publicly blasting the USDA over a flesh-eating pest threatening America’s beef supply
North AmericaUSDA
A ‘MAGA Warrior’ Texas ag chief is publicly blasting the USDA over a flesh-eating pest threatening America’s beef supply
By Marco Quiroz-GutierrezJune 10, 2026
11 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
23 hours ago
Current price of silver as of Tuesday, June 9, 2026
Personal Finance
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.