Economists like me rely on data from federal data collection agencies like the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA). They provide critical data on GDP, or gross domestic product, unemployment, productivity, wages, inflation and more. But over the years, economists have noted that some key data points are no longer available due to “budget constraints.”

First, let’s take a look at costs associated with these federal agencies. In fiscal year 2023 the Bureau of Labor Statistics budget was $698 million and the Bureau of Economic Analysis budget was $141 million. Together, they accounted for .014% of the total federal budget, which was $6.1 trillion that year.

Both agencies are part of “discretionary spending,” which at $1.7 trillion is a relatively small part of the total U.S. budget. The two main economic agencies account for a still minute .049% of that smaller expenditure category. The discretionary outlays are not classified as “mandatory.” Those mandatory expenditures account for the lion’s share of the budget, which includes Medicare and Social Security.

This is not a new thing. Adjusting for inflation, the Bureau of Labor Statistics — the larger of the two agencies — had a 5% reduction in its budget from 2015 to 2023. Staffing levels fell 12% at the Bureau of Labor Statistics from 2003 to 2023. This is despite more people in the U.S., more data to collect, and greater statistical complexity. The Bureau of Economic Analysis’ budget and personnel have held relatively steady over the last 20 years, inflation adjusted.

And just this past week, a federal hiring freeze was enacted, which will further erode these and other agencies. An economist friend of mine who works for our state told me that the federal agency in D.C. he was working for several years ago was strategically relocated to another state. Roughly 80% of those workers were displaced as it was tough for them to move, so they didn’t. That department essentially shut down — and that was the intent.

While I am all for efficiency, these two economic reporting agencies account for less than 14 cents out of every $1,000 that are spent by the U.S. government. And yet they provide the critical information that helps decision-makers make sound, data-driven decisions that impact our economic well-being. It’s really hard to make good decisions without good information.

Tatiana Bailey is executive director of the nonprofit Data-Driven Economic Strategies. For other Gazette articles and DDES monthly economic dashboards, go to ddestrategies.org.