Falling response rates push Census Bureau to test new ways of collecting data

The Census Bureau wants to expand its research on new ways to collect data across its business surveys. In a new request to the Office of Management and Budget, the bureau says business survey results have declined over the years, and it wants to explore how to enhance data collection by gathering information directly from businesses via automated methods. 

“The Census Bureau hopes to develop and refine these alternative reporting methods, enhance data collection and reduce reporting burden. These improvements aim to streamline data submission processes for companies, increase data accuracy and produce more timely and relevant business statistics,” the bureau wrote in the request. 

The request also says the research is taking place over three phases. During the first stage, which is already underway, the bureau talked with over 100 companies to explain the program and assess interest. Over half of the companies sent test files to the Census to review. Some companies sent enough information that the Census excused them from the regular survey. 

Phase two will start in the coming months. The Census will conduct follow-up research on data quality, reporting burden and what steps remain for the bureau to process the files sent. Phase three will start in 2027 and invite more companies to use the file uploads or use the bureau’s reporting portal Centurion. The bureau says the research could lead to developing automated data collection from companies. 

Data Foundation President Nick Hart told Federal News Network in a statement that phased approach — testing, learning what works and using that to build in safeguards before scaling — is the best way to modernize.  

“Reducing the burden on people and businesses when the government collects data is the right goal, and Census is going about it the right way. The proposal is well-grounded, and piloting it first is a best practice for deploying these methods responsibly,” said Hart.  

The response rate for surveys is falling across the federal statistic agencies. Numbers from the Census Bureau and the Bureau of Labor Statistics’ joint Current Population Survey show participation dropped from 90% to 70% in the past decade. Additionally, the American Community Survey which is an annual, mandatory demographics survey saw response rates drop from 82% in 2024 to 74% in 2025. The decrease in response rates in 2025 was also partly driven by the government shutdown in October and November 2025. 

Howard Fienberg, co-director of the Census Project, told Federal News Network that the new data collection methods could help supplement budget constraints. Fienberg added that the more agencies deliver data with accuracy and timeliness, the more trust federal data could garner.  

“I cross my fingers that this works, because I do think it will mean a lot of efficiency for these statistical agencies. They’re always being told to do more with less, this is a way they actually could do that,” said Fienberg. 

The Census will share its findings of the process with other federal statistical agencies to help improve data collection across the government. Comments on the bureau’s approach are open until Nov. 28.

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