U.S. President Donald Trump announced the abrupt dismissal of Erika McEntarfer, commissioner of the Bureau of Labor Statistics (BLS), following a weaker-than-expected July jobs report. The move has ignited debates over data integrity and political influence on economic institutions.
Jobs Report Sparks Controversy
The BLS reported just 73,000 new jobs in July, well below forecasts, with downward revisions of 258,000 positions for May and June. Trump accused McEntarfer, a Biden appointee, of manipulating data to benefit Democrats, though no evidence was provided. "We need accurate numbers," Trump stated on Truth Social, framing the dismissal as a corrective measure.
Backlash Over "Political Firing"
Democrats and economists condemned the move as an attack on institutional independence. Gary Hufbauer of the Peterson Institute called it a "political firing, pure and simple," warning of risks to data credibility. Former BLS officials emphasized no proof of systemic manipulation exists, while markets reacted sharply to the turmoil.
Market Volatility Intensifies
U.S. stocks fell sharply Friday, with the Dow dropping 1.23% and tech stocks sliding over 2%. Analysts linked the sell-off to weak jobs data and Trump's new tariffs on Canadian goods and other trading partners. Consumer discretionary and tech sectors led losses, while healthcare and staples saw modest gains.
The episode underscores growing tensions between economic policymaking and data transparency, with global investors closely monitoring U.S. labor trends ahead of November's election.
