Trump Orders Dismissal of Labor Statistics Chief Following Subpar Jobs Report

US President Donald Trump has ordered the dismissal of Erika McEntarfer, commissioner of the US Bureau of Labor Statistics (BLS), following a lackluster jobs report for July. The president alleged without evidence that the data had been manipulated to paint him in a negative light.

Background

The dismissal comes in the wake of a BLS report showing weak employment growth in July, with a mere addition of 73,000 non-farm jobs. This is significantly below market expectations which predicted an increase of over 100,000. The report also included a downward revision of job additions in May and June by 258,000.

Accusations of Data Manipulation

Trump claimed, without substantiating, that McEntarfer had manipulated the employment figures in the lead-up to last year's election, intending to boost Kamala Harris's chances of victory. The president’s assertion that the jobs report was rigged to make him look bad has drawn widespread attention and sparked concerns over the integrity of government economic data.

Market Reaction and Implications

The disappointing jobs report sent markets tumbling, exacerbating fears about the impact of tariffs. Economists have warned that the dismissal of the head of the BLS could undermine confidence in government economic data. The New York Times noted that the way the Bureau of Labor Statistics produces data is widely trusted and that the firing of the commissioner is damaging to that trust.

Ongoing Controversy

The president's decision has stirred controversy, with critics suggesting that the move could potentially allow him to exert more influence over the Federal Reserve. As the Japan Times reports, Trump now has the opportunity to tilt the Fed in his favor.

Conclusion

Despite the president's claim that the jobs report was manipulated, he did not provide any evidence to support his allegations. The dismissal of McEntarfer has raised questions about the reliability of BLS data and the potential impact on future economic policy decisions. As of now, it remains to be seen who will be appointed as the new head of the BLS and how this will affect the agency's future output.