Trump dismisses supervisor in charge of employment statistics following dismal job figures report
President Donald Trump removed the head of the Bureau of Labor Statistics (BLS), Erika McEntarfer, on Friday, a move that was roundly condemned by a group that included two former BLS commissioners.
The jobs report for July showed a disappointing figure, with only 73,000 jobs added last month. This dismal figure was a revision from an initially reported 139,000 jobs for May and a further revision down to 19,000 jobs in the latest update. The jobs report for June was also revised down to 147,000 jobs from an initially reported 147,000.
Trump accused the BLS of manipulating the jobs data for political reasons and called for McEntarfer's replacement. However, there is no verified historical evidence that the U.S. government has politically manipulated the official monthly jobs figures. The monthly jobs data, primarily produced by the BLS, is widely regarded as methodologically rigorous and is subjected to extensive checks and revisions to ensure accuracy and objectivity.
Trump provided no evidence for his charge. Vice President JD Vance was among the yea votes in the Senate, where McEntarfer's appointment was confirmed with a vote of 86-8.
William Wiatrowski, the deputy commissioner, is serving as the acting director of the BLS. The charge that the data was altered for political reasons was seen as threatening to undercut the political legitimacy of the U.S. government's economic data. The removal of McEntarfer, who was nominated by President Joe Biden in 2023 and became the Commissioner of the BLS in January 2024, has raised concerns about the independence of the BLS.
McEntarfer's removal comes amidst a broader trend of political interference in federal statistical agencies. The BLS, along with other agencies like the Census Bureau, has faced criticism for perceived politicisation under the Trump administration. The BLS has hundreds of career civil servants dedicated to maintaining the integrity of the jobs data.
The disappointing jobs report caused U.S. market indexes to drop about 1.5% on Friday. As the U.S. economy continues to navigate the impacts of the COVID-19 pandemic, the accuracy and objectivity of economic data remain crucial for policymakers and investors alike.
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