President Donald Trump has fired Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), following the release of a disappointing jobs report. The report indicated a slowdown in hiring for July, with significant downward revisions to the figures for May and June. Trump alleged that the data was manipulated for political reasons, a claim he made without providing any evidence.
In a post on his social media platform, Truth Social, Trump stated, "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified. We need accurate Jobs Numbers". He further added, "In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad".
The July jobs report revealed that the U.S. added only 73,000 nonfarm jobs, which is significantly lower than economists' expectations. Furthermore, the data for the previous two months was revised downward by a combined 258,000 jobs. Specifically, May's figures were adjusted from an initial 125,000 to just 19,000, and June's from 147,000 to 14,000. While revisions to employment reports are routine, the BLS acknowledged that the changes for May and June were "larger than normal". The unemployment rate saw a slight increase, moving from 4.1% to 4.2%.
McEntarfer, a labor economist, was nominated by former President Joe Biden in July 2023 and confirmed by the Senate in January 2024. Prior to her role as commissioner, she served as a senior economist on the White House Council of Economic Advisors, advising on the recovery from COVID-19. Following McEntarfer's dismissal, Deputy Commissioner William Wiatrowski will serve as acting commissioner while a replacement is sought. Wiatrowski previously held the position of acting commissioner for two years during Trump's first term.
Trump's decision to fire McEntarfer has been met with widespread condemnation. A group that included two former BLS commissioners, including William Beach, who was appointed by Trump, strongly criticized the move. They refuted the accusation of political manipulation and emphasized the importance of maintaining the credibility of federal economic statistics. "This rationale for firing Dr. McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers," stated the group, known as the Friends of BLS.
Economists have expressed concern that Trump's actions could undermine the perceived independence and reliability of U.S. economic data. For decades, this data has been regarded as a "gold standard" and largely accepted as free from political bias. Some experts suggest that these actions may be counterproductive to fostering a stronger economy.
The recent jobs report has raised concerns about a potential slowdown in the labor market. Some economists attribute this to factors such as trade wars and more restrictive immigration policies. For instance, factories cut 11,000 jobs last month, following similar declines in May and June. Reduced immigration is also believed to be contributing to labor strains by limiting the supply of available workers.
