U.S. Bureau of Labor Statistics: All operations will be suspended in the event of a government shutdown, and no economic data will be released during this period

The U.S. Department of Labor is preparing for a potential "shutdown" of news and data in the event of a government shutdown. If Congress fails to pass a budget before the end of the fiscal year on Tuesday, the risk of a government closure looms large.

According to an emergency plan released by the Department of Labor, the department is seeking to ensure that agencies can orderly suspend projects and operations in the event of a shutdown while continuing to carry out limited activities authorized to continue during the shutdown. The 73-page plan states:

The Bureau of Labor Statistics will suspend all operations. Any economic data scheduled for release during the shutdown will not be published.

While the Department of Labor's responsibilities cover many areas, the impact on data releases will be particularly urgent for investors. The Bureau of Labor Statistics (BLS) is part of the Department of Labor.

Some important upcoming reports that may be affected include: the non-farm payroll report due this Friday. The department also releases weekly data on initial jobless claims every Thursday. Previous data has shown that U.S. job growth has significantly slowed.

Additionally, the Consumer Price Index (CPI), a key inflation indicator and the last relevant data the Federal Reserve will receive before its meeting on October 28-29, will be released on October 15.

In addition to not releasing reports, the Department of Labor also noted that "all ongoing data collection activities for BLS surveys will cease," meaning that if the shutdown continues, other reports may also be delayed. The statement said: "During the shutdown, the BLS website will not update new content and will not recover in the event of technical failures."

The Bureau of Labor Statistics releases about 12 economic reports each month, including import and export prices, wages, and other data related to consumers and workers.

Several key reports soon to be released by the Department of Labor will provide important clues about the direction of the U.S. economy and serve as a basis for decision-making at the Federal Reserve's next meeting in October. If a prolonged government shutdown leads to delays in BLS data, the Federal Reserve may lack several key employment and inflation statistics before its next policy meeting on October 28-29.

Federal Reserve policymakers cut interest rates for the first time this year due to signs of a cooling labor market, and they are closely monitoring the latest economic data to determine whether further cuts to borrowing costs are necessary. Without official employment reports, the Federal Reserve will have to rely on narrower private data