In the event of a U.S. government shutdown, the Department of Labor (DOL) is prepared to implement a widespread data and news blackout, according to a contingency plan released Friday.
The plan details an “orderly suspension of programs and operations,” with significant consequences for investors and Federal Reserve policymakers who rely on the department’s economic reports. The Bureau of Labor Statistics (BLS), a DOL agency, would “suspend all operations,” and “economic data that are scheduled to be released during the lapse will not be released.”
This suspension would impact several critical upcoming reports. The monthly nonfarm payrolls report, a key indicator of a weakening job market, and the weekly initial jobless claims report would both be withheld.
Also affected would be the Consumer Price Index (CPI), a vital inflation gauge scheduled for release on October 15. This would be the last major inflation reading available to the Federal Reserve before its policy meeting on October 28-29.
The shutdown’s effects could extend beyond the immediate halt of publications. The plan states that “all active data collection activities for BLS surveys will cease,” potentially delaying future reports even after the government reopens. During the lapse, the BLS website will not be updated with new content or restored in the case of a technical failure.
Each month, the BLS releases about a dozen economic reports covering areas such as import and export prices, wages, and other crucial data on consumers and workers.
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