Economists Turn To Alternative Data For 'Mosaic' Of Trends, As Government Shutdown Halts Official Jobs Report

Benzinga

With the shutdown freezing the Bureau of Labor Statistics’ jobs report, Wall Street is turning to private data from ADP, Indeed, and Revelio Labs. Economists warn prolonged delays will make alternative sources vital as inflation and retail sales reports are also pushed back. The labor market’s weakness has already prompted a Fed rate cut, giving private data firms greater influence.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Government shutdown has frozen the Bureau of Labor Statistics' monthly jobs report,

00:06forcing economists, investors, and policymakers to turn to alternative data.

00:10And according to the Wall Street Journal, payroll processor ADP, Jobsite Indeed,

00:15and newcomer Revealio Labs are among the most filling the void,

00:18offering snapshots based on payrolls, job postings, and networking platforms.

00:23J.P. Morgan economist Michael Ferroli said these data points can be pieced together into a mosaic

00:27to understand trends, though gaps remain.

00:30Podemus warned that the longer the shutdown continues, the more critical private sources will become,

00:35especially as upcoming reports on consumer prices and retail sales are also delayed.

00:39The market has already weakened enough to prompt a Fed rate cut,

00:42and alternative data providers are gaining influence as Wall Street adapts

00:45to a prolonged absence of official statistics.

00:48For all things money, visit Benzinga.com.

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