BLS Commissioner Fired After July Jobs Report Shows Revisions to May and June Data

President Trump has fired the Commissioner of the Bureau of Labor Statistics, Erika McEntarfer, after the July jobs report showed a significant downward revision to job gains in May and June. The report revealed the US economy added only 73,000 jobs last month, with the unemployment rate rising to 4.2%. The revisions to the previous months' data were larger than usual.

President Trump has taken the unprecedented step of firing the Commissioner of the Bureau of Labor Statistics (BLS), Erika McEntarfer, following the release of the July jobs report. The report, which showed a significant downward revision to job gains in May and June, revealed that the US economy added only 73,000 jobs last month, with the unemployment rate rising to 4.2%. The revisions to the previous months' data were larger than usual, with a total of 258,000 jobs erased from May and June's figures [1].

The July jobs report has sparked a wave of concern among economists and Wall Street strategists. Sarah House, senior economist at Wells Fargo, described the report as a "dud," highlighting the broad-based hiring weakness in cyclically sensitive sectors like manufacturing, retail, and professional services. Steve Sosnik, chief strategist at Interactive Brokers, bluntly stated that the July numbers were "not good," while Veronica Clark, a Citi economist, noted that the revisions "definitely do look like a labor market that is weakening" [1].

The revised data has added urgency to calls for rate cuts from the Federal Reserve. The probability of a September rate cut surged to about 80% following the report, up from just 38% the day prior. Economists like Leslie Falcone at UBS Global Wealth Management anticipate that the Fed may start cutting rates in September, with consecutive cuts leading to about 100 basis points of cuts in total [1].

The market reaction to the report was swift and significant. The tech-heavy Nasdaq fell over 2% by mid-morning, the Dow shed nearly 600 points, and the S&P 500 dropped around 1.6%. Bond prices surged on increased rate cut bets, sending the yield on the 10-year Treasury down 11 basis points to around 4.2% [1].

The firing of McEntarfer comes as the labor market faces increasing scrutiny. The downward revisions to the job numbers have raised questions about the accuracy and reliability of the BLS data. Economists and market analysts have expressed concern that the revisions may indicate a more significant slowdown in the labor market than previously thought. The unemployment rate ticked up to 4.2%, but this increase was partly due to a decrease in the labor force participation rate, which some economists have linked to President Trump's immigration policies [1].

The implications of the July jobs report and the subsequent firing of McEntarfer are far-reaching. The report has underscored the fragility of the US labor market and the need for the Federal Reserve to act swiftly to support economic growth. The firing of McEntarfer, while potentially controversial, may signal a desire to ensure the accuracy and integrity of the BLS data in the face of mounting economic challenges.

References:
[1] https://finance.yahoo.com/news/a-gamechanger-economists-react-to-weak-july-jobs-report-as-rate-cut-bets-surge-161638670.html
[2] https://www.reuters.com/business/view-us-job-growth-sharply-slows-july-unemployment-rate-ticks-higher-2025-08-01/