Delays in US jobs data weaken the quality of US policymaking – FXStreet

Report on the Disruption of US Labor Market Data and its Implications for Sustainable Development Goals

Institutional Failures and Data Transparency: A Setback for SDG 16 and SDG 17

The unprecedented cancellation of the October jobs report by the U.S. Bureau of Labor Statistics, a direct consequence of a government shutdown, highlights significant challenges to the resilience and effectiveness of public institutions. This event directly contravenes the principles of Sustainable Development Goal 16 (Peace, Justice and Strong Institutions), which calls for effective, accountable, and transparent institutions at all levels. The subsequent decision to merge October’s data into a combined November report compromises the granularity and timeliness of crucial economic information.

• Reduced Transparency: The lack of a standalone October report obscures a clear view of the nation’s progress towards SDG 8 (Decent Work and Economic Growth).
• Compromised Data Availability: The disruption undermines SDG 17 (Partnerships for the Goals), specifically Target 17.18, which emphasizes the need for high-quality, timely, and reliable data to guide development policy.
• Increased Market Risk: Such data gaps increase the risk of market mis-pricing, potentially jeopardizing the stable economic environment required to advance all SDGs.

Impact on Economic Governance and Progress Toward SDG 8

The delay in labor market data presents a formidable obstacle for policymakers responsible for steering the U.S. economy. Evidence-based policymaking, a cornerstone of achieving SDG 8, is severely hampered when primary data sources are unavailable or delayed. The Federal Reserve and other fiscal authorities are left to make critical decisions without the most relevant information, potentially undermining efforts to foster sustained, inclusive, and sustainable economic growth and full and productive employment.

1. The November employment report is scheduled for release on December 16th.
2. This date is more than a week later than originally planned.
3. Crucially, this release will occur after the Federal Reserve’s next policy decision on December 10th, forcing the institution to rely on alternative or incomplete data sets.

Analysis of Delayed Labor Market Data and SDG Linkages

Retrospective Analysis of the September Jobs Report

The belatedly released September jobs report offers a dated snapshot of the labor market, providing a delayed measure of progress toward SDG 8 targets. While the data suggests a labor market that was stronger than anticipated two months prior, its relevance for current policy is limited. The data is essential for monitoring not only job creation but also for assessing progress on SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities), as employment is a primary vehicle for poverty reduction and equitable opportunity.

• Job Creation: Employers added 119,000 jobs, a positive indicator for SDG 8.
• Labor Force Participation: An increase in the size of the workforce was noted.
• Unemployment Rate: The unemployment rate increased to 4.4% from 4.3%, indicating persistent challenges in achieving full employment.
• Data Revisions: Payrolls for July and August were revised downward by 33,000, complicating the long-term assessment of decent work creation.

Conclusion: Data Integrity as a Foundation for Sustainable Development

The disruption to the release of official employment statistics represents a significant impediment to the effective monitoring and achievement of the Sustainable Development Goals. The reliance on state-level or private-sector data is a temporary and inadequate substitute for comprehensive national statistics. This episode underscores that the integrity, timeliness, and accessibility of official data are fundamental prerequisites for sound economic management and for tracking progress toward a sustainable and equitable future as envisioned in the 2030 Agenda.

SDGs Addressed in the Article

• SDG 8: Decent Work and Economic Growth

  The article’s primary focus is on the labor market and economic health, which is central to SDG 8. It discusses key employment metrics such as jobs added, the unemployment rate, and the size of the workforce. The cancellation of the jobs report is presented as a problem because it obscures “the health of the American economy,” directly connecting to the goal of promoting sustained, inclusive, and sustainable economic growth and full and productive employment.

• SDG 16: Peace, Justice and Strong Institutions

  This goal is addressed through the article’s emphasis on the role and failure of a key government institution, the US Bureau of Labor Statistics. The cancellation of the jobs report is described as a move that “reduces the transparency around the health of the American economy,” which relates to the need for effective, accountable, and transparent institutions (Target 16.6). Furthermore, the text highlights how data delays “confound and undermine the quality of policymaking,” touching upon the need for responsive and informed decision-making (Target 16.7).

• SDG 17: Partnerships for the Goals

  The article implicitly connects to SDG 17 by highlighting the critical importance of reliable and timely data for monitoring economic progress. Target 17.18 calls for increasing the availability of high-quality, timely, and reliable data. The article’s core theme is the negative consequence of the opposite: the cancellation and delay of crucial economic data series, which hampers the ability of institutions like the Federal Reserve to make informed decisions.

Specific SDG Targets Identified

1. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The article directly relates to this target by discussing the key metrics used to measure employment. The mention of “employers added 119,000 jobs,” a rise in “the size of the workforce,” and the “unemployment rate” are all fundamental components for assessing progress towards full and productive employment.

2. SDG 16: Peace, Justice and Strong Institutions

   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. This target is identified when the article states that the cancellation of the jobs report “reduces the transparency around the health of the American economy.” This action by a government agency (US Bureau of Labor Statistics) is presented as a failure in institutional transparency and effectiveness.
   • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels. The article points to this target by explaining how the lack of data affects decision-makers. It notes that “for decision makers responsible for steering the US economy… such data delays confound and undermine the quality of policymaking,” specifically mentioning the Federal Reserve’s upcoming decision.

3. SDG 17: Partnerships for the Goals

   • Target 17.18: By 2020, enhance capacity-building support… to increase significantly the availability of high-quality, timely and reliable data. The entire article serves as a case study on the importance of this target. The problems arising from the “cancellation of the October jobs report” and the “belated release of the September jobs report” underscore the necessity of having timely and reliable data for economic governance and market stability.

Indicators for Measuring Progress

1. SDG 8: Decent Work and Economic Growth

   • Indicator 8.5.2: Unemployment rate. The article explicitly mentions this indicator: “The unemployment rate, nevertheless, edged up to 4.4% in September from 4.3% a month before.” This is a direct, quantitative measure used to track progress towards full employment.
   • Implied Indicators (related to employment levels): The article mentions several data points that serve as indicators for employment levels, such as “payrolls,” “employers added 119,000 jobs,” “initial jobless claims fell to 220,000,” and “continuing claims rose.” These figures are used to measure the strength of the labor market.

2. SDG 16: Peace, Justice and Strong Institutions

   • Implied Indicator (related to institutional transparency): The article implies a qualitative indicator for Target 16.6. The very act of the “US Bureau of Labor Statistics” cancelling a jobs report “for the first time ever” serves as an indicator of a breakdown in institutional transparency and reliability.

3. SDG 17: Partnerships for the Goals

   • Implied Indicator (related to data availability): The article points to the timeliness and regularity of statistical releases as a key indicator. The “cancellation of the October jobs report,” the delay of the “October inflation report,” and the fact that the “November employment report is to be published only on 16 December, more than a week later than originally scheduled” all serve as negative indicators for the availability of timely and reliable data as called for in Target 17.18.

Summary Table of SDGs, Targets, and Indicators

Source: fxstreet.com