Dr. Erika McEntarfer served as the head of the Bureau of Labor Statistics. The Wall Street Journal
President Donald Trump fired Erika McEntarfer, the head of the Bureau of Labor Statistics, on Friday. This happened just hours after the agency shared a jobs report showing a sharp slowdown in hiring.
Trump questions jobs data
Trump used his Truth Social account to announce the firing. He accused McEntarfer of being a political appointee who, in his words, “faked the jobs numbers” to help Vice President Kamala Harris. He said the country needs honest and accurate job data and claimed that McEntarfer could not be trusted to deliver that.
He added, “She will be replaced with someone more competent and qualified.”
A bureau spokesperson confirmed her removal. William Wiatrowski, the deputy commissioner, will now take over as acting head.
Markets react to weak hiring
The same day, the agency reported that the U.S. economy added only 73,000 nonfarm jobs in July. That number fell far short of expectations. On top of that, the agency revised the two previous months’ job totals and cut them by 258,000. The three-month average now sits at only 35,000 jobs added per month. That’s the slowest growth since early 2020.
The poor report caused financial markets to fall sharply. The Dow dropped over 500 points, and the Nasdaq lost more than 2%. Treasury yields also slid.
Criticism of the bureau grows
Trump and some Republican lawmakers have long doubted the accuracy of the Labor Department’s numbers. They have often pointed to large corrections in past job reports. In one instance last year, the department lowered its 12-month job gain total by 818,000.
Trump also included an 8% staff cut for the bureau in his latest budget plan. Critics say this could affect the agency’s ability to collect complete and accurate data.
Reactions to the firing
Many experts voiced concern about McEntarfer’s removal. Some warned that firing someone based on one report could harm the agency’s independence.
William Beach, who served as commissioner before McEntarfer and was appointed by Trump, called the firing “totally groundless.” He warned that it weakens the agency’s mission and sends a bad message about how data is handled in the government.
Peter Mallouk, an investment firm president, said the firing felt like satire. He stressed that removing someone over unfavorable numbers damages trust in government data.
Trump also targets Fed chair
Trump didn’t stop with McEntarfer. He also took aim at Federal Reserve Chair Jerome Powell, blaming him for not cutting interest rates. Trump accused the Fed of trying to sway the election by adjusting rates before the vote.
Despite Trump’s claims, the Fed has kept its interest rate steady since December. But after the disappointing jobs data, many investors now expect the Fed to cut rates in September.
