Bureau of Labor Statistics

Definition

The Bureau of Labor Statistics (BLS) is a U.S. government agency responsible for collecting and analyzing labor market data. It provides essential information on employment, wages, inflation, and productivity that influence economic policies and financial decisions.

5 Must Know Facts For Your Next Test

1. The BLS publishes the Consumer Price Index (CPI), which measures inflation and impacts interest rates.
2. Employment data from the BLS can affect market expectations regarding Federal Reserve policies.
3. Wage statistics provided by the BLS are crucial for understanding income trends and purchasing power.
4. The Producer Price Index (PPI) released by the BLS tracks changes in selling prices received by domestic producers, influencing business cost structures.
5. BLS productivity metrics help assess efficiency improvements in the economy, affecting growth forecasts.

Review Questions

• What role does the Consumer Price Index (CPI) published by the BLS play in economic policy?
• How can employment data from the BLS impact financial markets?
• Why are wage statistics from the BLS important for understanding macroeconomic trends?

Related terms

Consumer Price Index (CPI): A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Producer Price Index (PPI): An index measuring the average change over time in selling prices received by domestic producers for their output.

Federal Reserve: The central banking system of the United States, which regulates monetary policy including interest rates.