In a bold move, President Trump has ordered the removal of Erika McEntarfer, the Commissioner of Labor Statistics. This decision came after the July jobs report revealed a significant drop in job growth, along with a troubling downward adjustment to the previous months’ numbers for May and June.
Taking to social media, Trump stated, “How can someone get it so wrong? We need reliable job numbers. I’ve told my team to fire this political appointee from Biden’s administration right away.” He emphasized the need for accurate data, ensuring that it should never be altered for political reasons.
The President was particularly alarmed by the weak figure of just 73,000 jobs added in July, which he referred to as “a shock,” while also calling the correction that reduced the earlier job gains by 258,000 a “serious error.”
Despite Trump’s concerns about data integrity, historical precedent indicates that the Bureau of Labor Statistics routinely makes adjustments to past numbers as new information comes to light. It’s common for previous months’ statistics to be revised both upwards and downwards, while the adjustments made in the June report actually resulted in increases for April and May’s figures.
McEntarfer’s dismissal hasn’t gone unnoticed; it has drawn criticism from several economists and policy advocates, who argue that this action casts doubt on the credibility of economic data from a respected federal agency.
Lily Roberts, managing director for Inclusive Growth at the Center for American Progress, stated, “Trump is shooting the messenger for presenting job numbers that highlight the damage his policies have inflicted on the economy,” advocating that the statistics are produced by long-standing nonpartisan professionals.
Heather Long, chief economist at the Navy Federal Credit Union, remarked that Mr. Trump’s termination of McEntarfer is largely unprecedented and signals potential concerns about the integrity of U.S. economic data in the future. The BLS is responsible for vital indicators like inflation, wages, and productivity, which are closely watched.
Additionally, concerns about the firing have been echoed by some Republican lawmakers. Senator Cynthia Lummis of Wyoming told CBS News, “The statistics remain what they are; blaming the statistician for accurate numbers isn’t justifiable.”
Meanwhile, Labor Secretary Lori Chavez-DeRemer supported the dismissal, stating that Deputy Commissioner William Wiatrowski will step in as acting commissioner. Via social media, she expressed that recent significant revisions have raised doubts about the decision-making process under the Biden-appointed Labor Commissioner.
Erika McEntarfer took office as the 16th commissioner of Labor Statistics in January 2024 after President Biden nominated her in 2023. Her resume includes two decades of service in various federal capacities, like the U.S. Census Bureau and the Treasury, highlighting her extensive experience.
The Job Market’s Standstill
Trump’s decision to fire McEntarfer follows a July jobs report that indicates a stagnating labor market, partly due to employer hesitance stemming from uncertainties regarding the administration’s trade policies.
This data correlates with feedback included in the Federal Reserve’s most recent “beige book,” which notes many businesses are postponing hiring until the economic outlook stabilizes.
Laura Ullrich, Indeed’s director of economic research, observed, “I expected a stagnant job report based on recent employer feedback, and that’s what we have today.”
