Trump initiates dismissal of labour official due to alleged manipulation of job statistics
The U.S. jobs market is showing signs of cooling, with employers adding only 73,000 jobs in July 2025, significantly below economists' expectations of 115,000 jobs. This slowdown and weaker job creation are attributed in part to the impact of President Trump’s tariff policies, which are believed to be weighing on economic growth and labor market hiring.
The unemployment rate rose slightly to 4.2% in July from 4.1% in June, and job growth in previous months was revised downward by a combined 258,000 jobs. This weaker-than-expected job additions have caused controversy between President Trump and economic officials.
Trump publicly criticized Federal Reserve officials, including Chair Jerome Powell, for not lowering interest rates following the softer jobs report and ongoing economic challenges. Trump has been pressing for rate cuts to stimulate growth despite inflation concerns. At the same time, economic analysts and the Labor Department suggest that Trump’s tariffs and trade policies are causing economic uncertainty and slowing the labor market.
The controversy between Trump’s political stance and the economic officials tasked with managing monetary policy has intensified. President Trump claimed that the jobs numbers were rigged to make him and the Republicans look bad. He ordered the reimposition of steeper tariffs on scores of economies, with these tariffs set to take effect in a week.
The National Association for Business Economics (NABE) condemned the firing of Heather McEntarfer, the head of the Bureau of Labor Statistics, accusing Trump of manipulating employment data for political reasons. The head of the Bureau, William Beach, warned that this sets a dangerous precedent and undermines the statistical mission of the Bureau.
The slowdown in the jobs market is evident across various sectors. The US space agency Nasa is expected to lose nearly 4,000 employees, 20% of its workforce. Many firms have faced higher business costs due to tariffs, with hiring figures for May and June being revised down significantly by the Labor Department.
Economic analysts warn that the longer the tariff whiplash lasts, the more likely this weak hiring environment turns into layoffs. Heather Long, chief economist at the Navy Federal Credit Union, called the July jobs report a "gamechanger," stating that the labor market is deteriorating quickly and 75% of the jobs growth was in the healthcare sector.
Both Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller argued that the inflationary effects of tariffs were temporary and that the bank should focus on fortifying the economy to avert further weakening in the labor market. Bowman warned that putting off an interest rate cut "could result in a deterioration in the labor market and a further slowing in economic growth."
Larry Summers, former US Treasury secretary under Democratic president Bill Clinton, criticized McEntarfer's firing, stating that it is what happens in authoritarian countries, not democratic ones. The numbers pile pressure on the central bank as it considers the best time to cut interest rates to shore up the economy.
In summary, the jobs market under Trump’s administration is facing a marked slowdown with weaker-than-expected job additions and rising unemployment, partly due to tariff-driven trade tensions. This divergence between Trump’s calls for lower interest rates and the cautious approach of economic officials has intensified the debate on the best course for supporting the U.S. economy.
- The controversy surrounding the U.S. jobs market extends to sports betting, with economists questioning the impact of tariffs on the broader business landscape, including the betting industry.
- Despite the slowdown in the job market, the entertainment sector has been resilient, showcasing a steady growth in job creation and revenue.
- News headlines in July 2025 were dominated by policy-and-legislation discussions surrounding tariffs and wars-and-conflicts, with president Trump's administration taking a hardline stance on international trade.
- Environmental groups and advocates for clean energy have called for action in the face of the slow job creation in the renewable sector, citing the potential for job losses in the near future.
- General-news outlets reported a surge in crime-and-justice stories, linking the slowdown in job growth to increased crime rates in certain urban areas.
- The Travel industry is struggling due to the uncertainty created by tariff policies and ongoing trade disputes, leading to declines in tourism revenue and job losses.
- Healthcare sector has experienced significant job growth, largely offsetting the overall slowdown in the job market, with experts predicting continued growth in healthcare-related jobs.
