Trump Fires BLS Head Over Revised Jobs Report Fallout

President Donald Trump has announced the removal of Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS), in response to a recent weak jobs report that showed a sharp decline in hiring. The report indicated a mere 73,000 jobs added in July, with previous months revised downward by nearly 260,000, reducing the three-month average to 35,000—the lowest since the pandemic [2]. Trump accused the BLS of rigging the data, claiming it was manipulated to harm Republicans and his political standing, a claim for which no evidence has been provided [2].

Vice President JD Vance and Labor Secretary Lori Chavez-DeRemer initially defended the data, highlighting positive aspects of the report. Vance shared a graphic emphasizing a rise in native-born workers and a decline in foreign-born employment, suggesting the results reflected the impact of Trump’s immigration policies [1]. Chavez-DeRemer, in an earlier interview on Bloomberg TV, argued that despite the downward revisions, job growth was still on the “right path” and noted the administration had created “nearly half a million jobs” since Trump’s return to the White House [1]. However, there is no data to support this assertion [1].

Chavez-DeRemer later aligned with Trump, stating on social media that she agreed with the president that jobs numbers must be “fair, accurate, and never manipulated for political purposes,” even as she had previously defended the BLS data [1]. Her shift in position underscores the internal tension within the administration regarding the interpretation of economic data.

The BLS confirmed McEntarfer’s removal and appointed William Wiatrowski, the deputy commissioner, as acting head of the agency [2]. McEntarfer’s predecessor, William Beach, who was appointed by Trump in 2017, criticized the firing as “groundless,” warning that it set a dangerous precedent and undermined the agency’s statistical mission [2].

Trump has long expressed dissatisfaction with BLS data, particularly large downward revisions. Last year, the BLS revised down the 12-month payroll total by 818,000 jobs for the period ending in March 2024 [2]. In his latest budget proposal, Trump proposed an 8% staff reduction at the BLS, raising concerns about the agency’s capacity to produce reliable labor and economic data [2].

The market reacted swiftly to the release of the weak jobs report, with the Dow Jones falling over 500 points and the Nasdaq dropping more than 2%. Treasury yields also declined in response [10]. The administration’s recent actions have intensified scrutiny over the politicization of federal data and the independence of agencies like the BLS.

Trump’s criticism extended to Federal Reserve Chair Jerome Powell, who has resisted lowering interest rates until the impact of Trump’s tariffs on inflation is clearer. Powell’s stance has drawn repeated ire from the president, who continues to push for aggressive rate cuts [10].

Sources:

[1] JD Vance Praised Jobs Report That Trump Now Says Was ... (https://newrepublic.com/post/198737/jd-vance-praised-jobs-report-trump-says-hoax-labor-statistics)

[2] Trump Fires Jobs Numbers Chief, Raising Fears That ... (https://www.democracydocket.com/news-alerts/trump-fire-bureau-labor-statistics-commissioner-mcentarfer-negative-jobs-report/)

[10] Live updates: Trump tariffs and jobs report send markets ... (https://www.nbcnews.com/politics/trump-administration/live-blog/trump-gaza-trade-deals-tariffs-deadline-live-updates-rcna221379)