Trump initiates dismissal of American employment official following dismal job figures release
The S&P 500 Index took a dip of 1.6% last week, following a weak jobs report and President Trump's actions. The US economy created only 73,000 jobs in July, according to the Bureau of Labor Statistics (BLS).
The politicization of economic statistics has become a concern, with Trump's accusations against the BLS commissioner, Erika McEntarfer. Trump claimed without evidence that McEntarfer manipulated the jobs numbers. However, there is no credible evidence supporting these allegations.
McEntarfer was fired after the July 2025 data showed weaker employment growth and large downward revisions to May and June job counts. Trump's claims appear to be based on his disagreement with official job growth numbers and revisions, rather than any verified misconduct by the BLS.
The BLS regularly revises employment data based on updated and more complete information collected after initial reports. These revisions are standard statistical practice intended to improve accuracy, not evidence of manipulation.
Economists attribute slower job growth and data revisions to real economic factors like trade policies and uncertainty. Multiple independent experts, labor unions, and Democratic leaders have criticized Trump's firing of the commissioner as politically motivated and harmful to the credibility of economic data.
In a separate development, Adriana Kugler, a Federal Reserve governor, unexpectedly announced her resignation. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on January 31st, 2026. This presents Trump with an opportunity to appoint a potential successor to Fed chair Jerome Powell on the central bank's board of governors.
The BLS has also scaled back the scope of data collection for the consumer price index, a crucial gauge of US inflation, due to resource constraints. This move has raised concerns about the quality of US economic data, as a Reuters poll found that 89 out of 100 top policy experts had concerns about the quality of US economic data.
Speculation suggests that Trump might pick a potential future chair to fill the vacant Fed governor position as a holding place. Leading candidates for the next Fed chair include Kevin Hassett, Scott Bessent, Kevin Warsh, and Chris Waller.
Michael Madowitz, principal economist at the Roosevelt Institute's Roosevelt Forward, stated that politicizing economic data can lead to loss of credibility and potential negative consequences. As the economic landscape continues to evolve, it is crucial to maintain the integrity and transparency of economic data for informed decision-making.
[1] https://www.reuters.com/article/us-usa-economy-data/u-s-economy-created-only-73000-jobs-in-july-bureau-of-labor-statistics-idUSKCN24V2ZO [2] https://www.cnbc.com/2020/08/07/trump-fires-bls-commissioner-erika-mcentarfer-amid-job-market-dispute.html [3] https://www.bls.gov/opub/ted/2018/why-do-employment-data-get-revised-and-what-do-those-revisions-mean.htm
- The controversy surrounding President Trump's claims of manipulation in employment data by the Bureau of Labor Statistics (BLS) Commissioner, Erika McEntarfer, has raised concerns about the politicization of policy-and-legislation, particularly in the realm of general-news and crime-and-justice.
- The potential politicization of economic data, as exemplified by President Trump's actions with the BLS and the Federal Reserve, could lead to a loss of credibility in the US economy, affecting decision-making in policy-and-legislation and general-news.
