Trump Fires Top Jobs Data Official Amid Tariff Turmoil and Market Drop
- The New York Editorial Desk - Arif
- Aug 2
- 3 min read
Tone & Political Bias: Strongly Right-Leaning
Why: The president’s actions and statements cast doubt on independent data and institutions, promote personal narratives over public trust, and attempt to reshape key economic messaging in line with political goals.
What Happened
President Donald Trump fired Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS), just hours after the release of disappointing job numbers that contradicted the administration’s economic messaging. McEntarfer was accused by Trump of "rigging" data to make him and the Republican Party "look bad".
The BLS reported that only 73,000 jobs were added in July—well below the expected 109,000—while revising down job growth for May and June by 250,000 positions combined.
Markets fell sharply as concerns mounted over Trump’s escalating tariff policies, which economists say are worsening labor market conditions.
The Numbers
Jobs added in July: 73,000
Forecast: 109,000
Revisions: May and June figures reduced by a combined 250,000
Tariff impact: Uncertainty is attributed as a major cause of declining job growth
Trump’s Justification
Trump announced the firing on social media, alleging that the jobs data were “phony” and manipulated to damage his image. He said the move was necessary to place “people we can trust” in key government roles.
“Why should anybody trust numbers?” Trump asked reporters Friday.
He also defended his decision by referring to past doubts he held about official data before his 2016 election, reiterating his belief that government statistics were inaccurate or intentionally misleading.
Political Reactions
Criticism came swiftly from both political leaders and economists:
Chuck Schumer, Senate Minority Leader, called Trump a “bad leader” who “shoots the messenger”.
Larry Summers, former Treasury Secretary, warned the move resembled authoritarian behavior, not democratic governance.
Michael Strain, American Enterprise Institute, said McEntarfer acted with “great integrity” and the president’s decision was “damaging the United States”.
Jed Kolko, Peterson Institute for International Economics, called the firing “five-alarm intentional harm” to U.S. economic data credibility.
Friends of BLS, an association that includes two former commissioners, warned the politicization of data would erode public trust in all government science.
Background on McEntarfer
Erika McEntarfer had worked in government for over 20 years and was nominated by President Joe Biden in 2023. Her Senate confirmation was nearly unanimous. Upon leaving, she described her role as “the honour of my life,” emphasizing the agency’s “vital and important” work.
Deputy Commissioner William Wiatrowski will serve as acting head of the BLS while the Labor Department searches for a replacement. The department has not publicly commented on the firing.
Market Reaction
U.S. stock markets closed sharply lower Friday following the job report and the continued uncertainty surrounding Trump’s trade policies.
Trump’s insistence on higher tariffs—from 10% to as high as 50% on various imports—has drawn concern from Wall Street. Economists say the tariff strategy is damaging manufacturing and small businesses, sectors particularly sensitive to trade policy and often slower to respond to economic surveys.
“The labor market is deteriorating quickly,” said Heather Long, chief economist at Navy Federal Credit Union.
Tariff Impact
Trump’s ongoing tariff expansions have raised the average U.S. import tax rate to about 17%, up from under 2.5% at the start of the year.
Earlier tariffs in April: Caused over 10% drop in U.S. markets within a week.
Recent strategy: Less extreme than initial proposals but still affecting global trade dynamics.
Business response: Numerous firms have reported rising costs and uncertainty tied to tariff policy.
Despite economic concerns, Trump believes his trade policies will ultimately benefit American workers and industries.
Fed in the Crosshairs
Alongside the firing of McEntarfer, Trump intensified criticism of Federal Reserve Chair Jerome Powell, whom he previously pressured to cut interest rates. Following the jobs report, Trump said Powell “should also be put out to pasture”. Adriana Kugler, a member of the Fed’s policy-setting committee, is stepping down early—giving Trump a chance to nominate her replacement.
Analysts Warn of Broader Risks
Economists across the spectrum expressed alarm that Trump’s actions signal a dangerous precedent: politicizing statistical agencies in service of political narratives. The BLS, long considered a gold standard in global labor data, now faces questions about its independence under pressure from the White House.
“When leaders of other nations have politicized economic data, it has destroyed public trust,” said a statement from former BLS commissioners.
As the White House moves forward with replacing leadership at the agency, questions remain about how government data will be handled during a contentious election season.
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