Key Facts
• U.S. Bureau of Labor Statistics (BLS) revised July employment data on August 1, 2025.
• Non-farm payroll growth for May and June was revised down by 260,000 jobs.
• July job growth fell below expectations, signaling labor market volatility.
• 40% of revisions stemmed from state and local public education sectors.
• Initial survey response rates dropped below 60%, compared to pre-pandemic levels of over 70%.
• Economists cite declining public trust and survey fatigue as key factors.
• Inflation Insights President noted lower response rates increase data revision risks.
• BLS reported no clear link between response rates and data revisions.
• Trump criticized the revisions, calling them a “serious error” and proposed firing BLS Director.
• Federal Reserve Board member cited expected data revisions in opposing a recent rate hold.
• BLS announced 15% of Consumer Price Index (CPI) samples were not collected in July.
• Budget cuts and staffing shortages have worsened data collection challenges since the Trump administration.
Summary
The U.S. Bureau of Labor Statistics (BLS) announced significant downward revisions to employment data for May and June 2025, marking the largest adjustments since the COVID-19 pandemic. July job growth also fell short of expectations, highlighting labor market instability. Economists attribute these revisions to declining survey response rates, which have dropped below 60%, compared to over 70% pre-pandemic. Public education sectors accounted for 40% of the adjustments. Experts warn that lower response rates and resource constraints, exacerbated by budget cuts, could lead to greater data volatility. Former President Trump criticized the revisions, calling for the dismissal of the BLS Director. The BLS also reported challenges in collecting Consumer Price Index (CPI) data, with 15% of samples left uncollected. These issues underscore broader concerns about the reliability of economic data amid declining public trust and government resource limitations.
