One of the key components of the monthly jobs report, the establishment survey, is highly regarded among economists for its accuracy and reliability. In contrast, the household survey, which offers more detailed demographic information and helps calculate the unemployment rate, is often viewed as more volatile due to its smaller sample size and decreasing response rates.
The Bureau of Labor Statistics (BLS) has announced plans to reduce the size of the household survey by 5,000 households, bringing the total to 55,000 starting in 2025. This decision was confirmed by the BLS commissioner during a recent meeting, citing challenges such as declining response rates and increasing collection costs.
A BLS spokesperson highlighted the ongoing struggle to maintain survey quality amidst budget constraints, stating that cost-cutting measures have been implemented in collaboration with the Census Bureau in recent years. However, due to the continued rise in costs, a reduction in sample size is deemed necessary for Fiscal Year 2025.
The spokesperson assured that formal notice would be provided before any changes are implemented, emphasizing the agencies' commitment to preserving the integrity of the data despite the need for adjustments.
