Labor Statistics Improvement Act - Establishes an independent Commission to Improve Labor Statistics.

Directs the Commission to: (1) examine and make an assessment of the process by which the Bureau of Labor Statistics (BLS) collects, processes, analyzes, and disseminates statistical data relating to unemployment rates, including the methods used for determining that an individual is considered to be looking for work; (2) formulate recommendations for any improvement to such process and methods, including proposals for any alternative measures of labor force participation, taking into account evidence that the official unemployment rate doesn't always accurately reflect labor market strength; and (3) develop a new method for determining and reporting underemployment that takes into consideration workers who are not in jobs that match their skill set or education and who are earning less than other workers in similar occupations or with similar skill sets and education.

Directs the Commission to transmit a report to the President and Congress within 180 days after all of its original members have been appointed. Terminates the Commission 60 days after it submits such report.