Uproar as President Trump Fires BLS Leader after Rocky Jobs Data
A firestorm is growing in Washington and Wall Street after President Trump fired Bureau of Labor Statistics (BLS) Director Erika McEntarfer after a lackluster July jobs report and downward revisions to the jobs report for May and June.
Without evidence, the president accused McEntarfer of manipulating the job numbers for political purposes, writing on Truth Social that the “Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad.”
The U.S. jobs report showed that 73,000 jobs were created in July. BLS revised the May and June jobs report lower by a combined 258,000 positions, suggesting that the economy has weakened under President Trump.
The White House defended the firing, suggesting that data from the U.S. Labor Department, long a gold standard for economists, has become “very unreliable.”
“To make sure that the data are as transparent and as reliable as possible, we’re going to get highly qualified people in there that have a fresh start and a fresh set of eyes on the problem,” National Economic Council Director Kevin Hassett told CNBC.
Concerns About Data Integrity
The firing prompted concerns about the integrity of economic data going forward.
“Anything that undermines that or even the perception of that high standard is deeply worrisome,” Mark Zandi, chief economist at Moody’s Analytics told CNN. “I’ve never seen anything even close to this.”
“This rationale for firing Dr. McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers,” wrote Friends of BLS, a group of former BLS leaders and employees who advocate for the bureau.
“The totally groundless firing of Dr. Erika McEntarfer, my successor as Commissioner of Labor Statistics at BLS, sets a dangerous precedent and undermines the statistical mission of the Bureau,” wrote William Beach, who served as BLS Commissioner during President Trump’s first term and is a member of Friends of BLS leadership.
However, acting BLS commissioner William Wiatrowski wrote to employees that the work will carry on.
“Our mission is unchanged — to provide high quality data to the nation,” said Wiatrowski.
McEntarfer also sent a farewell note to employees.
“BLS produces some of the most closely watched economic data in the nation,” she wrote. “Our data moves markets because it is some of the most timely and accurate information on economic conditions that businesses and policymakers have.
Hassett, the president’s economic director, said the president “wants his own people there” and is said to be searching for a new permanent commissioner, with a new nominee to be named in a matter of days.