US Employment Report Cancelled for Second Month Due to Government Shutdown

This analysis is based on the Reuters report [1] published on November 7, 2025, which reported that the U.S. Labor Department will not publish the October employment report for an unprecedented second straight month due to the ongoing government shutdown.

The cancellation of consecutive employment reports represents an unprecedented disruption to U.S. economic data infrastructure. The shutdown, now in its second month and described as the longest in U.S. history, has effectively halted Bureau of Labor Statistics (BLS) field operations and data processing capabilities [1]. This creates a critical data vacuum that impacts multiple stakeholders across the financial ecosystem.

The timing is particularly significant as markets were already showing weakness, with major indices declining on November 6 (S&P 500 down 0.99%, NASDAQ down 1.74%, Dow Jones down 0.73%) [0]. The absence of official employment data compounds existing market uncertainty and may exacerbate volatility.

This marks the first time in modern U.S. history that consecutive employment reports have been cancelled due to a government shutdown. The lack of precedent makes it difficult to predict the full implications for economic analysis and market behavior.

The household survey component appears particularly vulnerable, with potential for permanent data loss for October [1]. This could create gaps in long-term economic trend analysis that may never be fully recovered.

The Federal Reserve faces increased uncertainty in monetary policy decisions without official employment data [1]. Policymakers will need to rely on less comprehensive private-sector data, potentially affecting the accuracy of economic assessments and policy responses.

The absence of this key economic indicator disrupts established trading patterns and risk management strategies that typically revolve around employment report releases.

• Extended Data Gap:
  If the shutdown continues into November, a multi-month data gap could emerge, severely impacting economic forecasting and business planning [1]
• Policy Uncertainty:
  The Federal Reserve and other government agencies must make decisions with incomplete data, increasing the risk of policy missteps
• Market Volatility:
  The data vacuum could lead to increased speculation and heightened market volatility around economic data release times
• Data Quality Concerns:
  Even when operations resume, questions may arise about the quality and completeness of recovered data

• Alternative Data Sources:
  Private-sector employment reports (ADP, Indeed, etc.) may gain increased relevance and influence
• Political Resolution:
  A key Senate vote scheduled for Friday could potentially end the shutdown and restore normal operations [4]
• Sector-Specific Analysis:
  Employment-sensitive industries may provide leading indicators of broader labor market conditions

The ongoing government shutdown has created an unprecedented disruption to U.S. economic data reporting, with the October employment report cancelled for the second consecutive month. This situation affects Federal Reserve policy decisions, market operations, and economic forecasting capabilities. The household survey data for October may be permanently lost, creating gaps in long-term economic trend analysis. Markets showed recent weakness prior to this announcement, potentially amplifying the impact of this data uncertainty. Stakeholders should monitor alternative employment indicators and watch for political developments that could resolve the shutdown and restore normal data collection operations.