On 1/8, former President Donald Trump announced the dismissal of Erika McEntarfer, commissioner of the BLS, a part of the US Department of Labor. This action followed the release of the July jobs report, which included substantial downward revisions to job creation numbers for the two preceding months.

The BLS report revealed that the US economy added only 73,000 jobs in July, falling short of the 115,000 projection. The BLS also revised job creation figures for May and June, down from 144,000 to 19,000 and from 147,000 to 14,000, respectively. This resulted in a total downward revision of 258,000 jobs for those two months.

"How can anyone be so wrong? We need accurate job numbers. I have directed the immediate firing of this politically motivated Biden appointee," Trump posted on Truth Social, referring to McEntarfer.

Erika McEntarfer. Photo: US Department of Labor

Erika McEntarfer. Photo: US Department of Labor

President Joe Biden nominated McEntarfer to head the BLS in 7/2023, and the Senate confirmed her appointment in 1/2024 with a majority vote. The position is crucial, as the BLS is a nonpartisan agency that provides monthly data used by the federal government and businesses for investment, hiring, spending, and other decisions.

The BLS has revised its jobs reports before, primarily due to data collection methods rather than individual errors. The initial BLS report relies heavily on information from large companies, which tend to respond to surveys earlier. Smaller companies, often more affected by economic downturns, tend to respond later. The BLS adjusts its figures when this later data is incorporated.

However, the magnitude of the revisions for May and June was startling, according to Diane Swon, chief economist at KPMG.

The revised report showed the worst three-month period for US job growth since the start of the Covid-19 pandemic in 2020. Democrats quickly seized on the report to criticize the Trump administration's economic management.

US job growth over the past 12 months. Graphic: CNN

US job growth over the past 12 months. Graphic: CNN

This fueled Trump's belief that the BLS had political motives for the revisions. "In my opinion, the job numbers have been distorted to make the Republican Party and me look bad," he wrote on Truth Social. "The same thing happened in the first half of the year, always in a negative direction. The US economy is booming under Trump."

He also accused McEntarfer of manipulating 2024 job numbers to bolster Democratic presidential candidate Kamala Harris. "They had great numbers during the 2024 presidential election. They were 'eliminated' on 15/11/2024, right after the race for the White House, with job figures revised down by over 818,000 – a scam," Trump continued.

The BLS explained at the time that it had "overcounted 818,000 jobs for 12 consecutive months."

According to a Trump administration official, economic data always has some margin of error, but the White House was dissatisfied with the recent revisions and the slow survey response rates. "These are issues that have been simmering for years but have not been addressed. The market, businesses, and the government need accurate data, and we don't have that," the official told Reuters.

US Labor Secretary Lori Chavez-DeRemer expressed concern about McEntarfer's "series of significant recent adjustments." "I support the president's replacement of the Biden-appointed BLS commissioner and ensuring that the American people can trust the data from this agency," Chavez-DeRemer announced, adding that Deputy Commissioner William Wiatrowski would lead the BLS in the interim.

Former US President Donald Trump addresses the press at the White House on 1/8. Photo: AP

Former US President Donald Trump addresses the press at the White House on 1/8. Photo: AP

The decision to fire the BLS commissioner drew immediate criticism from economists and political figures who argued that Trump was threatening the transparency and credibility of economic data from a federal agency.

"Former President Trump is lashing out at the messenger simply because he doesn't like the jobs numbers reflecting the impact he's had on the economy," said Lily Roberts, a researcher at the Center for American Progress, a Washington-based think tank.

"The data released by the BLS is compiled by nonpartisan economists who have been doing this work for decades. Politicizing the economic data collection process could shake markets, which rely on objective information to function, and make it harder to create an economy where everyone has a good job," Roberts continued.

Jason Furman, a former economic adviser to President Barack Obama, said the leadership change might not affect BLS operations but would create a negative impression. He noted that countries that manipulate data often face economic crises.

Some Republicans also expressed concern about Trump's decision. "The numbers are what they are. The statistician is not at fault if the numbers are accurate but not what the president wants," Senator Cynthia Lummis, a Republican, told CBS News.

Nhu Tam (According to Washington Post, CBS News, Reuters)