The quality of US economic data continues to deteriorate:

The Current Population Survey response rate, which the BLS uses to calculate the unemployment rate, is down to 64%, the lowest on record.

This is even lower than the brief drop seen during the 2020 pandemic.

Since the start of 2020, the response rate has fallen ~30 points.

To put this into perspective, the response rate was over 90% before 2012.

In other words, fewer people are answering the survey the BLS uses to measure unemployment, labor force participation, full-time and part-time jobs, and other key metrics.

As a result, labor market estimates are relying on less complete information and may be less accurate.

What is happening here?

#FedRateCutPrediction