Many are discovering that the Bureau of Labor Statistics updates past estimates, but some have been misled to believe that the recent correction to jobs numbers was politically motivated. For the New York Times, Ben Casselman, with graphics by Keith Collins and Christine Zhang, explains why updates to the data are a regular thing.
There is a fundamental tension inherent in all economic data: accuracy vs. timeliness.
Policymakers, investors and businesses want information as quickly as possible so it can inform their decisions. But the most complete data is often based on tax returns, Social Security filings or other records that aren’t available until months or years later.
Revisions are the imperfect solution to this problem. Statistical agencies release preliminary estimates of job growth, inflation, gross domestic product and other measures, then revise them as more complete data becomes available.
Reduced funding, agency layoffs, and uncertainty in the economy don’t help with the accuracy.
