The White House announced on Wednesday (November 12) that due to the longest government shutdown in U.S. history, the collection of economic data has been frozen, and the employment and inflation data for October may never be compiled and released.
During the shutdown, the Bureau of Labor Statistics (BLS) of the Department of Labor’s work was mostly put on hold, leaving the agency potentially unable to catch up on the data that should have been released, as it was not collected during the shutdown.
The government shutdown started on October 1 and lasted until the evening of November 12, setting a record for the longest government shutdown in U.S. history. The prolonged shutdown obstructed the release of the employment reports for September and October by the Bureau of Labor Statistics.
While the shutdown was ongoing, the Bureau briefly reopened to compile the Consumer Price Index (CPI) inflation report for September, which is crucial for determining the cost-of-living adjustment (COLA) for 2026, affecting the retirement benefits that social security beneficiaries can receive.
The Consumer Price Index report for October was originally scheduled for release on Thursday, but Leavitt stated on Wednesday that this report may never see the light of day.
“Democrats may have permanently damaged the federal statistical system, and the October CPI and employment reports may never be published,” Leavitt said. “All economic data released will be permanently compromised, leaving our policymakers at the Federal Reserve to act blindly at a critical time.”
Both the monthly employment report and the consumer price index report rely on extensive nationwide surveys and on-the-ground data collection networks, many of which may be difficult or even impossible to accurately collect after the relevant period has passed.
The six-week-long government shutdown affected the release of many crucial economic data points, including the monthly nonfarm payroll numbers and the consumer price index, both sourced from the Bureau of Labor Statistics. Affected data also includes retail sales, trade figures, as well as consumer spending and income levels.
Most economists on Wall Street have been expecting that despite delays, all data would eventually be released. However, Leavitt’s remarks cast doubt on whether this expectation will become a reality.
Leavitt stated, “The shutdown caused by the Democrats is making it difficult for economists, investors, and policymakers at the Federal Reserve to access key government data.”
She added that the government shutdown could lead to a reduction of up to 2 percentage points in the U.S. fourth-quarter economic growth rate.