US President Donald Trump has dismissed Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS), following the release of a weaker than expected jobs report that intensified worries over the impact of his administration’s tariff policies.
The July employment figures showed only 73000 new jobs added, along with significant downward revisions of over 250000 to May and June job numbers. Trump accused McEntarfer of manipulating the data for political purposes, though he provided no evidence. He announced her removal via social media, stating the need for “accurate jobs numbers.”
The decision shocked economic observers and raised fears about political interference in the nation’s independent statistical agencies. The S&P 500 closed down 1.6 percent on the news, as investor confidence wavered in the face of growing concerns about data reliability and escalating trade tensions.
William Wiatrowski, deputy commissioner of the BLS, has been appointed acting commissioner while the Department of Labor searches for a permanent replacement. The Department did not immediately respond to requests for comment.
McEntarfer, who had served in government for over two decades and was confirmed by the Senate in 2023, described her role as “the honour of my life” and defended the agency’s impartiality and commitment to public service.
Ryan Sweet, chief US economist at Oxford Economics, said the move could have serious consequences for business and investor confidence. “This is a step in a very bad direction. High quality, unbiased economic data is critical for decision making,” he said.
Leading economists and policy experts across the political spectrum also condemned the move. Michael Strain of the American Enterprise Institute warned that undermining trust in official statistics could harm US policymaking and investor sentiment. Jed Kolko of the Peterson Institute said the firing marked a clear escalation of political interference, calling it “five alarm intentional harm to the integrity of US economic data.”
The firing comes as President Trump pushes forward with his aggressive trade policy agenda. New tariffs ranging from 10 to 50 percent are being levied on imports from countries across the globe. These new measures are set to raise the average tariff rate in the United States to around 17 percent, up from less than 2.5 percent at the start of the year.
Although Trump argues the tariffs will protect American jobs and boost manufacturing, the markets are showing signs of strain. On Friday, the Dow fell 1.2 percent, the Nasdaq dropped 2.2 percent, and global markets in Europe and Asia also recorded losses.
Meanwhile, Trump launched another attack on Federal Reserve Chairman Jerome Powell for not cutting interest rates quickly enough. Adriana Kugler, a Federal Reserve Board member, announced her resignation on the same day, giving Trump an opportunity to further reshape the central bank.
As concerns rise over the politicization of economic data, analysts warn that uncertainty could affect how businesses, investors, and policymakers make decisions. The fallout from the firing is expected to reverberate through global markets and could increase volatility as the 2026 election approaches.
