Bureau of Labor Statistics (BLS): What It Is and How It Works

Key takeaways
* The BLS is the principal U.S. federal agency for labor-related statistics, producing widely used indicators on employment, wages, prices, productivity, and workplace trends.
* Its headline inflation measures are the Consumer Price Index (CPI) and the Producer Price Index (PPI).
* BLS releases (often monthly) are used by policymakers, businesses, researchers, and financial markets to assess economic conditions.

What the BLS does

The Bureau of Labor Statistics (BLS), part of the U.S. Department of Labor, collects, analyzes, and publishes data on the U.S. labor market and price movements. Its mission is to produce accurate, impartial, and accessible statistics that inform government policy, business decisions, academic research, and public understanding of the economy.

Major data products and indicators

• Consumer Price Index (CPI): Tracks price changes for a consistent “basket” of consumer goods and services; commonly used to measure inflation and cost-of-living changes.
• Producer Price Index (PPI): Measures average changes in selling prices received by domestic producers for their output—an early indicator of inflationary trends.
• Job Openings and Labor Turnover Survey (JOLTS): Reports openings, hires, and separations to show labor demand and turnover.
• Current Population Survey (CPS): A monthly household survey (conducted with the Census Bureau) that provides the national unemployment rate and other labor force statistics.
• Local Area Unemployment Statistics (LAUS): Produces localized measures of employment and unemployment.
• National Compensation Survey (NCS): Provides detailed data on wages, benefits, and compensation costs across industries.

How the BLS collects and presents data

The BLS uses multiple methods, including household surveys, employer surveys, administrative records, and censuses. Common features of BLS releases:
* Regular schedules—many key series are released monthly; others are quarterly, annual, or ad hoc.
* Tables and regional/industry breakdowns that allow detailed analysis.
* Visualizations (charts, maps) to illustrate geographic or sector patterns.
* Technical notes explaining survey methods, scope, and definitions (important for interpreting coverage and limitations, e.g., whether figures include only nonfarm payroll jobs).

A typical release (example)

A typical BLS press release summarizes headline figures (for example: job openings, hires, and separations), provides industry and regional tables, and includes charts and technical notes. The release highlights trends and points readers to the underlying tables and methodological documentation.

Measuring inflation

The BLS defines inflation as a rise in the general price level that reduces purchasing power. It measures inflation primarily through:
* CPI — tracks consumer-facing price changes and is used for cost-of-living adjustments and policy analysis.
* PPI — captures price changes at the producer level and can signal future consumer-price movements.

Why BLS data matter

BLS statistics are central to economic analysis: they inform monetary and fiscal policy, wage-setting, business planning, and academic research. Market participants often use BLS releases to update forecasts for inflation, employment, and economic growth.

Brief history

Established in the late 19th century, the BLS has evolved from an interior department branch to its current role within the Department of Labor. Over time it expanded its surveys and methods to produce the comprehensive labor and price statistics used today.

Conclusion

The BLS provides foundational, methodologically transparent data on labor markets and prices. Its regular releases—CPI, PPI, employment surveys, and turnover statistics—are among the most closely watched economic indicators and are essential for understanding and responding to changes in the U.S. economy.

Sources
* U.S. Bureau of Labor Statistics
* U.S. Census Bureau (Current Population Survey)