Government Shutdown Delays Full October Jobs Report, Federal Reserve to Rely on September Numbers

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The US Labor Department has announced that it will not release a full jobs report for October due to the 43-day federal government shutdown. The shutdown disrupted data collection, making it impossible for the department to calculate the unemployment rate and other key numbers. However, the department will release some of the October jobs data, including the number of jobs created last month, along with the full November jobs report on December 16. The monthly jobs report typically includes two key components: a survey of households that determines the unemployment rate, and an establishment survey that tracks job creation, wages, and labor market health. Unfortunately, the household survey for October could not be conducted and cannot be done retroactively. On the other hand, the department was able to collect hiring numbers from employers, which will be released with the full November report. The delay in the October jobs report has significant implications for the Federal Reserve, as they will rely on the September numbers when deciding whether to cut their benchmark interest rate for the third time this year. The jobs numbers have been contentious lately, with President Donald Trump firing the Bureau of Labor Statistics commissioner in July after a disappointing jobs report. Bureau of Labor Statistics commissioner Erika McEntarfer has dismissed any conspiracy theories surrounding the announcement, stating that the household survey cannot be conducted retrospectively and that the payroll data from firms can be collected for October. The department's field staff were furloughed for over a month due to the shutdown, resulting in the delay of the October jobs report.