Erika McEntarfer, the recently appointed commissioner of the Bureau of Labor Statistics (BLS), was abruptly fired by President Donald Trump following the release of new employment figures that revealed a significant slowdown in job growth. McEntarfer has more than 20 years of federal government service in senior analytical roles, including at the U.S. Census Bureau and at the Executive Office of the President. In 2024, the US Senate confirmed her to take on her new challenge.
The company had made the decision to cut McEntarfer position after reading the most recent jobs report. This monthly report showed less hiring than previously expected and massive downward revisions to prior employment estimates. The new numbers read that a fractional 14,000 jobs were added in May. That is a big revision down from the prior estimated addition of 147,000 jobs. Adjusting for discrepancies, June’s job addition total fell off a cliff to a mere 19,000. This marks a dramatic departure from the original estimate of 139,000 jobs.
During her tenure, President Trump accused McEntarfer of “cooking the books” on job numbers. He accused her of falsifying data, but he has not provided any evidence to substantiate that claim. This criticism underscores the administration’s historically fraught relationship with its appointees over economic reporting.
According to today’s Bureau of Labor Statistics report, the U.S. added just 73,000 jobs in July. That number is a welcome departure from the disappointing numbers of previous months. Our own analysts have warned that even small discrepancies like this can erode public trust in an already-fragile labor market data.
Seema Shah, an economist, commented on the implications of the latest findings:
“Not only was this a much weaker than forecast payrolls number, the monster downward revisions to the past two months inflicts a major blow to the picture of labor market robustness.”
The BLS is tasked with providing vital economic data, and any perceived inaccuracies can lead to significant political and economic repercussions. What shifted employment numbers recently has sparked charged arguments between economists and policymakers. They’re looking at how these changes will affect the development of economic policy more widely.
Stephen Miran, another economist, expressed concern over the reported job figures, indicating a need for more robust employment trends.
“Obviously, they’re not what we want to see.”
He added that he anticipates improvements as economic policies begin to take effect:
“Both of those sources of uncertainty are resolved. We expect things to get materially stronger from here, now that our policies are starting to sort into place.”
William Wiatrowski will become acting commissioner of the BLS. In the interim, the administration will begin immediately to look for a capable replacement for McEntarfer. The makeup of the interim leadership will be very important. They’ll take the Bureau forward under constant watch over its labor statistics and the effect these will have on national economic policy.
McEntarfer’s firing isn’t the first time this has happened. It exposes a bigger problem of data manipulation and political pressure in economic journalism. As the critics point out, removing career staff can jeopardize the independence of key statistical agencies. This, of course, can affect their capacity to provide neutral information.
