US President Donald Trump has announced the dismissal of Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), following a disappointing jobs report that raised fresh concerns over the impact of his aggressive trade policies.
In a social media post on Friday, Trump accused McEntarfer, without presenting evidence, of politically manipulating employment data, saying: “We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY.”
The surprise announcement rattled financial markets and triggered a wave of condemnation from economists and policy experts, who warned that White House interference in the BLS, an agency historically independent from political influence, could erode trust in US economic data.
McEntarfer, who was unanimously confirmed by the US Senate in 2023 and has over 20 years of government service, responded by calling her tenure “the honour of my life,” while affirming the “vital and important” role of the agency.
The Labour Department said Deputy Commissioner William Wiatrowski will serve as acting head while a search for McEntarfer’s replacement is conducted. The department declined to comment further.
The move came just hours after the BLS released weaker-than-expected employment figures for July, showing only 73,000 jobs added and significant downward revisions to May and June data—shedding 250,000 jobs from previous estimates.
The S&P 500 fell 1.6%, the Dow Jones Industrial Average slipped 1.2%, and the tech-heavy Nasdaq plunged 2.2%. European and Asian markets also dipped sharply. Analysts attributed the volatility to rising fears over both the economy and the politicisation of official statistics.
“This is a step in a very bad direction,” said Ryan Sweet, chief US economist at Oxford Economics. “If there are questions about the integrity of the data, it’s going to create a lot of problems for businesses and investors.”
Trump’s decision came amid escalating trade tensions, as the administration announced plans to raise tariffs on goods from multiple countries to between 10% and 50%, pushing the average US tariff rate to 17%, up from 2.5% at the year’s start.
The policy shift reignited fears of a global economic slowdown. France’s CAC 40 dropped 2.9%, Germany’s DAX fell 2.6%, and South Korea’s KOSPI tumbled 3.8%.
Despite mounting criticism, Trump defended his tariff agenda, insisting it would restore American manufacturing and rebalance global trade. “I believe the numbers were phony,” he told reporters. “So you know what I did? I fired her. And I did the right thing.”
Economists from across the political spectrum expressed deep concern. Michael Strain of the American Enterprise Institute said McEntarfer had shown “great integrity” and warned that Trump’s move was damaging to the credibility of government statistics.
Jed Kolko of the Peterson Institute for International Economics was more pointed, calling the firing “five-alarm intentional harm” to the US statistical system.
The BLS regularly revises employment data as more information becomes available—a routine practice. Analysts suggested the latest revisions may reflect challenges facing small businesses, particularly those hit hardest by tariffs.
“This isn’t manipulation,” said Sweet. “Revisions are normal. They’re trying to get this right.”
Trump also renewed criticism of Federal Reserve Chair Jerome Powell, accusing him of being too slow to cut interest rates. Meanwhile, Fed governor Adriana Kugler announced her early resignation, potentially opening a seat for Trump to influence future rate decisions.
With tensions rising between the White House and the country’s economic institutions, observers warn the broader implications could be lasting.
“Undermining trusted data sources undermines policy, investment, and confidence,” said Kolko. “This could reverberate far beyond one jobs report.”
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