Trump dismisses head of US labour statistics following disappointing jobs data release
In a move that has raised eyebrows and sparked concern, President Donald Trump ordered the firing of Dr. Erika McEntarfer, Commissioner of the Bureau of Labor Statistics (BLS), on August 1, 2025. The dismissal comes after the agency released a jobs report that showed slower hiring than expected and revised downward job creation numbers for May and June.
McEntarfer, a nonpartisan career civil servant appointed by President Biden and confirmed unanimously by the Senate, served a fixed four-year term to ensure the BLS's autonomy. The BLS is a crucial statistical agency that operates independently within the Department of Labor, providing reliable labor market data (jobs, wages, inflation) essential for policymakers, businesses, and the public.
The firing has been met with significant backlash from former colleagues, federal employees, and labor unions, who view it as unprecedented political interference meant to silence inconvenient truths rather than a justified personnel change. Critics fear that this could threaten the neutrality and integrity of the BLS, potentially politicizing economic statistics and damaging democratic governance and public trust.
The National Association for Business Economics (NABE) has condemned McEntarfer's dismissal, attributing large revisions in jobs numbers to dwindling resources, not manipulation. Heather Long, chief economist at the Navy Federal Credit Union, deemed the July jobs report a "gamechanger." According to Long, the labor market is deteriorating quickly, with 75% of the jobs growth in July coming from the health care sector.
The employment data piles pressure on the Federal Reserve as it considers the best time to cut interest rates to support the economy. The sharp weakening in the labor market could push the Fed towards slashing interest rates sooner. However, both Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller argue that the inflationary effects of tariffs are temporary and emphasize the need to fortify the economy to avert further weakening in the labor market.
The US added 73,000 jobs in July, according to the Department of Labour, a figure that has been revised from the initially reported 144,000 to 19,000 for May and 147,000 to 14,000 for June. These revisions have caused concern, with many questioning the motives behind McEntarfer's firing.
Tariff levels have been climbing since the start of the year, affecting various countries and sector-specific products. Many firms have faced higher business costs due to these tariffs, leading to a cautious approach in hiring and investment. President Trump has ordered the reimposition of steeper tariffs on multiple economies, which are set to take effect in a week.
The unemployment rate in the US rose to 4.2% in July, with the labor market showing challenges. Notably, Larry Summers, former US Treasury secretary under Democratic president Bill Clinton, has criticized the firing, stating it resembles authoritarian practices, not democratic ones.
The controversy surrounding McEntarfer's firing continues, with concerns about the future politicization of economic statistics and its impact on democratic governance and public trust. William Beach, former McEntarfer's post holder, has criticized the firing as setting a dangerous precedent and undermining the statistical mission of the Bureau.
- The controversy surrounding Dr. Erika McEntarfer's firing from the Bureau of Labor Statistics has raised concerns about the future politicization of economic statistics, potentially threatening democratic governance and public trust.
- The National Association for Business Economics (NABE) has attributed large revisions in jobs numbers not to manipulation, but to dwindling resources.
- According to Heather Long, chief economist at the Navy Federal Credit Union, the labor market is deteriorating quickly, with 75% of the jobs growth in July coming from the health care sector, putting pressure on the Federal Reserve to consider cutting interest rates to support the economy.
