Donald Trump just fired Erika McEntarfer from her job as director of the Bureau of Labor Statistics (BLS). This decision followed the release of a shocking jobs report exposing a dramatic slowdown in hiring. Instead, that report ended up coming in with a stunner of just 73,000 jobs added for July. What’s more, it made large downward revisions to the prior month’s job creation numbers in May and June. Trump claimed that the jobs statistics are being “fudged” in order to make him look bad. Consequently, firing McEntarfer was the only option.
That jobs report, which Trump has previously lambasted, would portend a sweeping new recessionary economic horizon unfolded under his presidency. The revisions showed that job gains in May were slashed from 125,000 to just 19,000, and June’s figures were cut from 147,000 to 14,000. Further complicating the rosy economic picture, the unemployment rate ticked up as well, increasing to 4.2 percent from 4.1 percent. Those disappointing numbers drove U.S. market indexes down about 1.5 percent on Friday.
Allegations of Data Manipulation
In fact, Trump even threatened the BLS on daily basis, loudly proclaiming that the data they released was fabricated to serve a political purpose. In a recent post, he stated, “In my opinion, today’s Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad.” His criticism cast a spotlight on how far backwards the administration has revised past hiring data, a practice he referred to as “unconscionable.”
The former president has systematically tried to sap this very institution and others that use data to evaluate the economic impacts of its power. Trump’s ire has extended beyond the BLS to include the Federal Reserve, indicating a broader strategy to challenge perceived biases in economic reporting. He stated, “No one can be that wrong? We need accurate Jobs Numbers,” emphasizing his belief in the importance of reliable economic data.
Political Implications of the Dismissal
After Trump announced his intention to fire McEntarfer, came the political pushback. Republican Representative Lori Chavez-DeRemer of Oregon cheered the decision. “I support the President’s decision to replace Biden’s Commissioner and ensure the American People can trust the important and influential data coming from BLS,” she remarked.
Democratic leaders lambasted Trump’s actions as a move to distract from taking responsibility for bad news pertaining to the economy. Chuck Schumer responded to the dismissal by stating, “What does a bad leader do when they get bad news? Shoot the messenger.” This politicized statement points to wider tensions around the use of economic data and the accountability of leadership.
Future of the Bureau of Labor Statistics
Erika McEntarfer was nominated to serve as BLS commissioner by President Joe Biden, confirmed by the Senate and took office in January 2024. The catch here is that while commissioners have four-year terms, they are political appointees and thus can be removed at will. Trump’s decision raises questions about the future direction of the BLS and its role in providing objective data on employment and economic conditions.
Given ongoing economic uncertainty, getting employment numbers right will be essential in helping policymakers and Americans better understand the state of the economy. With McEntarfer’s departure, Trump aims to appoint someone he believes will enhance the credibility of the agency’s data and ensure it is not swayed by political considerations.
