Some of America's Most Important Economic Data Is Decaying

This episode explores the challenges facing the collection of high-quality economic data, specifically focusing on the declining response rates and rising costs associated with surveys conducted by the Bureau of Labor Statistics (BLS). Against the backdrop of decreasing response rates in surveys like the Current Population Survey (CPS) and the Job Openings and Labor Turnover Survey (JOLTS), the discussion highlights the increasing difficulty and expense of obtaining data, particularly for the Household Survey, which involves extensive in-person interviews. More significantly, the rising costs, primarily due to increased wages for skilled interviewers, are straining the BLS's budget, forcing them to reduce sample sizes and potentially compromise the detail and accuracy of published data. For instance, the cost of the Household Survey increased by nearly $5 million between 2019 and 2023. The conversation then pivots to potential solutions, such as modernizing data collection methods through increased use of electronic surveys and integration of internet data, while acknowledging the limitations of relying solely on readily available online information. Ultimately, the episode underscores the critical role of accurate economic data in informing policy decisions and market activity, emphasizing the need for innovative solutions and increased funding to prevent the deterioration of this crucial public good.