Trump dismisses labour statistics chief following disappointing employment data release
The U.S. job market is currently facing significant challenges, with subdued job creation and major downward revisions to recent months' employment figures. The latest data from the Bureau of Labor Statistics (BLS) reveals that the employment growth in July 2025 was anaemic, adding only 73,000 jobs, far below expectations.
The unemployment rate slightly increased to 4.2% from 4.1% in June. More notably, the Labour Department revised May and June job gains sharply downward—from initially reported gains of 144,000 and 147,000 jobs respectively, to just 19,000 and 14,000 job additions. This means employment growth over these two months was 258,000 lower than first reported, signaling a much weaker labor market than previously believed.
These revisions are characterized as unusually large and have raised concerns about the robustness of job market data. They may reflect reduced labor supply factors, such as tighter immigration enforcement leading to fewer foreign-born workers participating in the workforce. The Federal Reserve has emphasized focusing on the unemployment rate rather than just job growth numbers, since both labor supply and demand affect these statistics.
Regarding allegations of data falsification linked to the BLS, no credible reports indicate any verified claims or evidence of intentional data falsification. The large revisions appear to stem from the normal data updating process as more comprehensive employment reports are received and seasonal adjustments are recalculated.
Eugenio Alemán, chief economist at Raymond James, stated that the downward revision trend has the potential to bring July's employment reading into negative territory. The BLS has lowered month-earlier numbers each month this year, with the latest revision affecting July's employment data. The total downward revision in employment numbers by the BLS for the year is -461,000.
The downward revision trend, as indicated by the BLS, has been consistent throughout 2021. The market expectations for an increase in jobs were more than 100,000, but the actual figure was lower, continuing the pattern of underperformance. Alemán added that the revision to July's number is not guaranteed to be negative but cautioned that the BLS has revised 2025 employment numbers by -461,000 so far this year, which is not a positive sign for the Federal Reserve and markets going forward.
The bleak jobs picture emerged as a blow to Trump's positive outlook on the economy, following US Gross Domestic Product expansion by 3% in the second quarter. US President Donald Trump ordered the commissioner of the US Bureau of Labour Statistics, Erika McEntarfer, to be fired, alleging data falsification. However, no credible reports indicate any verified claims or evidence of intentional data falsification.
The employment growth in the previous month (July) was below the expected increase, with a gain of merely 73,000 non-farm jobs, according to the latest BLS data. Economists and policymakers are closely monitoring these developments as potential indicators of economic slowdown or recession risk.
[1] BLS Report [2] Federal Reserve Statement [3] Raymond James Analysis [4] CNBC Coverage
- The Federal Reserve might need to reassess its policy-and-legislation regarding the economy, given the consistent underperformance of the job market as indicated by the bleak jobs picture and the large revisions in employment numbers reported by the Bureau of Labor Statistics (BLS).
- The general news about the economy has recently been dominated by discussions on crime-and-justice, particularly allegations of data falsification linked to the BLS, despite the repeated denials by the commissioner of US Bureau of Labour Statistics, Erika McEntarfer.
