Labor Department cancels full October jobs report due to the federal shutdown

Key Takeaways:

• A 43-day government shutdown prevented the Labor Department from gathering full October jobs data.
• Only partial data for October will be released alongside November’s full report on December 16.
• September’s delayed report is now under greater scrutiny as the Fed meets in December.
• Former BLS Commissioner Erika McEntarfer was fired by President Trump following a disappointing July report.
• The October household survey, which determines unemployment rates, cannot be done retroactively.

The Shutdown’s Impact on October Data Collection

The Labor Department announced that it will not release a complete October jobs report, citing the 43-day federal government shutdown as the cause. During the shutdown, staff responsible for gathering key information were furloughed, making it impossible to conduct the household survey that typically measures unemployment and workforce participation. The department emphasized that this survey cannot be performed retroactively, leaving a critical gap in the nation’s labor statistics.

Partial October Figures—What to Expect

Although there will be no unemployment rate or other household-based data for October, some information will still be available. According to the Labor Department, employers did manage to submit their payroll numbers, so the total number of jobs added or lost in October will be merged with November’s data. This combined report is scheduled for release on December 16—later than it would normally be published—giving economists and policymakers a limited view until then.

Heightened Scrutiny on September’s Numbers

With no October unemployment rate and only partial payroll data, Thursday’s September jobs numbers have taken on added importance. The September report, originally intended for release on October 3, was also delayed by the shutdown. As the Federal Reserve approaches its December 9-10 meeting, these older figures will be some of the only complete labor-market data available in determining whether to adjust benchmark interest rates for the third time this year.

Political Tensions and the BLS

Job market data has been a contentious topic in recent months. President Donald Trump fired Bureau of Labor Statistics commissioner Erika McEntarfer shortly after the July jobs report fell short of expectations. In response to the announcement that the October household survey could not be completed, McEntarfer dismissed any speculation of a cover-up. “No conspiracy here, folks,” she posted on Bluesky. “BLS was entirely shutdown for six weeks. … This is just a straightforward consequence of having all field staff furloughed for over a month.”

Looking Ahead to December

Washington’s schedule of official labor-market updates has been turned upside down by the shutdown, leaving both economists and the general public with fewer facts. The Labor Department’s newly scheduled December 16 release will combine key job creation figures for both October and November, as well as the usual calibration of the unemployment rate. Whether this consolidated data presentation will affect market confidence—or influence the Federal Reserve’s decisions—remains to be seen.