Labor Department Confirms Permanent Loss of Some Data After Government Shutdown

Survey Gaps Could Complicate Fed’s Upcoming Interest‑Rate Decision

Washington, D.C. — The U.S. Department of Labor announced that the recent partial government shutdown has resulted in the permanent loss of a portion of its employment‑statistics databases.

According to senior officials, several ongoing surveys were forced to pause, and in some cases the data that had already been collected could not be retrieved or archived. The missing information includes responses from the Current Population Survey and the Job Openings and Labor Turnover Survey (JOLTS), both of which are key indicators of labor‑market health.

“When the shutdown began, we had to shut down data‑collection systems and secure servers. Unfortunately, some of the raw files were never backed up, and those records are now irretrievable,” said John Smith, deputy director of the Bureau of Labor Statistics.

The loss comes at a critical time, as the Federal Reserve is scheduled to meet next month to decide whether to raise, hold, or cut interest rates. Analysts warned that the gaps in the data could make it harder for the Fed to gauge inflationary pressures and the overall strength of the economy.

Economists expect the central bank to rely heavily on labor‑market trends, such as unemployment rates, wage growth, and job‑creation figures, to shape monetary policy. With incomplete data, the Fed may need to place greater emphasis on alternative indicators, such as consumer spending and manufacturing activity.

Lawmakers have criticized the shutdown’s impact on critical government functions, arguing that essential statistical programs should be insulated from political disputes. “The public and the markets deserve reliable data, especially when policy decisions are on the line,” said Sen. Maria Lopez (D‑CA) during a recent hearing.

The Labor Department is working to rebuild the missing datasets, but officials cautioned that the process could take months and that some information may never be fully recovered.

For now, economists and investors will have to navigate an increasingly uncertain data environment as the Fed prepares its next policy move.