Bureau of Labor Statistics (BLS): What It Is and How It Works

What Is the Bureau of Labor Statistics (BLS)?

The Bureau of Labor Statistics (BLS) is a federal agency that collects and disseminates various data about the U.S. economy and labor market. Its reports include the Consumer Price Index (CPI) and the Producer Price Index (PPI), both of which are considered to be important measures of inflation. The BLS also produces the Import/Export Index (MXP), which tracks the price changes of goods bought and sold by the U.S.

Understanding the Bureau of Labor Statistics (BLS)

The primary purpose of the BLS, an arm of the U.S. Department of Labor (DOL), is to research, assemble, and publish a range of statistical data on the labor market, prices, and productivity. This government agency goes to great lengths to ensure the accuracy, impartiality, and accessibility of its reports and the statistics it produces are among the most influential economic indicators of the American economy.

BLS data is frequently cited by the media and relied on by businesses, academics, and policymakers to inform their decision-making. It's also closely watched by economists and market participants, who consult the bureau's releases to generate better and more accurate predictions for how the economy and markets will perform in the future.

Most Important Data Releases

Some of the most important statistical releases published by the BLS include:

• The Consumer Price Index (CPI): An aggregate of the prices of a relatively fixed basket of goods, which is used as a standard gauge of inflation and the cost of living.
• The Producer Price Index (PPI): A measure of the average prices American producers receive for their goods and services.
• Local Area Unemployment Statistics (LAUS): A range of localized data about labor efficiency and unemployment.
• The National Compensation Survey (NCS): Produces comprehensive aggregates of workers' earnings across a variety of sectors.
• Current Population Survey (CPS): Sponsored jointly with the Census Bureau, this is a monthly survey that seeks to determine the demographic characteristics and employment status of all individuals of a household who are of working age. Also known as the "household survey," the CPS includes the national unemployment rate and is the primary source for U.S. labor force statistics. 

History of the Bureau of Labor Statistics (BLS)

The BLS was first established as a branch of the Department of the Interior in 1884 with a mandate to research and compile information about economics and labor. For nearly 15 years, it subsequently operated as an independent department, before being incorporated into the short-lived Department of Commerce and Labor in 1903.

That move only lasted a decade. When the Department of Commerce and Labor was renamed the Department of Commerce (DOC) in 1913, the BLS, along with other bureaus and agencies concerned with labor, was then transferred into the newly-created DOL, a U.S. cabinet-level agency responsible for enforcing federal labor standards and promoting workers' wellbeing.

Example of Bureau of Labor Statistics Press Release

On Tuesday, Oct. 29, 2024, the BLS released its monthly state job openings and labor turnover statistics. The report was based on September employment numbers and stated that there was little change in job openings at 7.4 million from the previous month. Hiring numbers were also little changed at 5.6 million and separations were unchanged at 5.2 million.

Below is an overview of what the press release and the top of the report look like. Other BLS reports are similar in fashion. The BLS generally provides commentary on the statistics it collects.

The BLS also provides the summarized numbers to a variety of reports; in this case, the BLS has provided the employment figures by industry and region for the given month in a series of tables.

In addition, the BLS reports data in visualizations to help analyze the data; in this example, the BLS has provided a visual of a map of job opening rates by state along with relevant data within each state. Note that this is one month behind the reported tables above.

Last, within each press release, the BLS provides technical notes. These technical notes are meant to explain where the data points were collected from and the methodology of any survey. Understanding these technical notes is important as it lays the foundation for what information was actually collected, how it was collected, and who is represented in any given report. For example, in this labor report, the report only includes nonfarm jobs.

The Bottom Line

The BLS is a U.S. government agency responsible for collecting, analyzing, and disseminating data related to labor and economic conditions, including employment, wages, inflation, and productivity. Its data, provided through various surveys and reports, supports economic policy-making and offers insights into labor market trends and economic health.