Why the Monthly Jobs Report Is Often Revised: Axios' Ben Berkowitz Explains
Ben Berkowitz, managing editor of business and markets at Axios, joined The Ryan Gorman Show to demystify the monthly jobs report and explain the recent uptick in significant revisions. Produced by the Bureau of Labor Statistics (BLS), the report is a crucial snapshot of employment in the U.S., based on surveys sent to approximately 120,000 businesses each month.
"The BLS is essentially the government's clearinghouse for employment data," Berkowitz said. "They ask basic but important questions like how many people are employed and what they’re being paid."
While best known for employment data, the BLS also compiles critical inflation and wage statistics that feed into the broader economic picture. The monthly jobs report, released the first Friday of each month, is based on a sample representing about five percent of U.S. businesses annually.
Berkowitz explained that the data is collected, analyzed by a panel of statisticians, and then compiled into the jobs numbers—such as total employment gains or losses and the unemployment rate. However, revisions are common because not all businesses respond on time. "They keep the window open to accept more responses, and as that data comes in, they go back and revise the original numbers," he said.
So why have the revisions been so large lately? According to Berkowitz, a combination of underfunding, outdated systems, and lingering effects of the pandemic are to blame. "There’s bipartisan consensus that the BLS needs more staff and resources. COVID made businesses even less responsive, which is a big reason behind some of the historic revisions we've seen."
To hear more about how jobs data shapes the economic narrative—and a surprising detail about just how outdated some BLS processes really are—listen to the full interview on The Ryan Gorman Show.