Government shutdown will delay release of January jobs report

• The BLS will resume normal operations and update its release calendar once funding is restored
• A previous 43-day government shutdown from October 1 to mid-November also disrupted economic data releases
• Federal agencies furlough nonessential workers during shutdowns, impacting those tasked with gathering data and compiling monthly economic reports

Summary:

A partial government shutdown that began Saturday will delay the release of the January jobs report, originally scheduled for Friday. The Bureau of Labor Statistics (BLS) announced Monday that the report will be rescheduled once government funding is restored.

Emily Liddel, associate commissioner at BLS, stated that the agency will resume normal operations and update the public on the revised release calendar after funding is restored. The delay occurs because federal agencies furlough nonessential workers during shutdowns, including BLS staff responsible for data collection and economic report compilation.

This disruption follows a similar pattern from a previous government shutdown that lasted 43 days, spanning from October 1 through mid-November, which was the longest government shutdown in U.S. history. That shutdown also interrupted economic data releases.

Market Implications:

The delayed jobs report creates uncertainty for traders and investors who rely on employment data for insights into economic health and Federal Reserve policy decisions. The January jobs report is a critical indicator that influences:

• Interest rate expectations
• Stock market movements
• Currency valuations
• Bond yields

Market participants will lack timely labor market data, potentially increasing volatility and making it harder to assess economic conditions. The timing of the eventual release remains unknown, contingent on when Congress reaches a funding agreement to end the shutdown.

Key Entity: Bureau of Labor Statistics (BLS), a federal agency responsible for employment statistics

Status: Developing situation with no confirmed new release date for the jobs report.