Trump instigates dismissal of U.S. employment bureaucrat following disappointing job figures report
In a move that has raised eyebrows, US President Donald Trump has fired Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), on Friday. This decision comes amidst concerns about the politicization of economic statistics and its potential impact on the credibility of America's economic data.
The response rate for the government surveys used to compile the employment report has declined from 80.3% in October 2020 to about 67.1% in July, raising questions about the accuracy of the data. However, there is no credible evidence supporting Donald Trump's accusation that the BLS manipulated or rigged US job market data. Trump claimed that BLS Commissioner Erika McEntarfer "faked the Jobs Numbers" to influence election outcomes and called the reports "phony," but he has not provided any proof for these claims.
The politicization of economic statistics is a concern, as it can damage the credibility of America’s economic data. Experts and former officials have dismissed Trump's allegations. For example, top economists explain that revisions to job data are normal and part of BLS’s effort to balance timeliness and accuracy. These revisions do not indicate manipulation but rather an ongoing process to improve data quality. Additionally, a former Trump-appointed BLS commissioner called the firing of McEntarfer “totally groundless” and stated it undermines the agency’s mission.
Adriana Kugler, a Fed governor, unexpectedly announced her resignation on Friday afternoon. Kugler's resignation opens the door for Trump to make an imprint on the Federal Reserve. The firing came after a weak jobs report in the US economy, with only 73,000 jobs created in July. More jobs were revised downward, showing 258,000 fewer jobs had been created in May and June than previously reported.
The BLS has already reduced the sample collection for consumer price data and the producer price report due to resource constraints. The BLS has scaled back the scope of data collection for the consumer price index due to headcount reductions. This reduction in data collection could potentially impact the accuracy of the consumer price index, one of the most important gauges of US inflation, watched by investors and policymakers worldwide.
The politicization of economic statistics is a concern, as it can damage the credibility of America’s economic data. A Reuters poll found that 89 out of 100 top policy experts had concerns about the quality of US economic data. Most experts also expressed concern that authorities are not addressing the issue urgently enough. Some speculate that Mr. Trump might pick a potential future chair to fill the vacancy as a holding place.
The White House and independent fact-checkers have found no evidence that revisions to job reports were politically motivated or rigged, labeling Trump’s claims as unfounded. The firing of McEntarfer was criticized by some as politically motivated, as she was appointed by former president Joe Biden. A governor filling an unexpired term may then be reappointed to a full 14-year term. Mr. Trump will now get to select a Fed governor to replace Ms. Kugler and finish out her term, which expires on January 31st, 2026.
In summary, the accusation of data manipulation by the BLS in US job market reports is unsupported by available evidence and contradicted by expert analysis and the normal statistical practices of the agency. The politicization of economic statistics is a concern, as it can damage the credibility of America’s economic data. The firing of Erika McEntarfer and the resignation of Adriana Kugler further fuel these concerns.
The politicization of economic statistics, as evident in the firing of BLS Commissioner Erika McEntarfer and the resignation of Fed Governor Adriana Kugler, can damage the credibility of America’s economic data. In light of this, policy and legislation regarding the independence and integrity of these statistical agencies become crucial in general news and crime and justice discussions. Experts advise that authorities should address concerns about the quality of US economic data more urgently.
