Trump Fires Top Labour Statistician Amid Jobs Report Fallout and Market Turmoil

President Trump fired BLS head Erika McEntarfer after weak job numbers and amid growing concern over tariffs. Accusing her of political bias, he sparked fears of data manipulation. Markets fell globally, and economists warned of long-term damage to institutional trust. Trump defended the move as necessary for transparency and control.

US President Donald Trump has dismissed Erika McEntarfer, head of the Bureau of Labor Statistics (BLS), following a disappointing jobs report that intensified concerns about his tariff policies. The sudden firing, announced on social media, accused McEntarfer of manipulating economic data for political motives—claims made without supporting evidence.

McEntarfer, who described her tenure as the “honour of my life,” defended the integrity of the BLS, which had just reported only 73,000 jobs added in July—well below expectations. Revised figures also slashed previous job growth estimates by 250,000. Economists say such revisions, though unusually large, reflect current economic realities and are part of the normal process.

Trump’s decision shocked markets and sparked bipartisan concern about potential White House interference in federal data collection. Critics say the move could undermine confidence in official statistics, which businesses rely on for planning and forecasting. William Wiatrowski, the deputy commissioner, has stepped in temporarily.

The firing coincides with Trump advancing new global tariffs, raising duties on various goods to as much as 50%. The resulting backlash saw stock markets drop worldwide. The S&P 500 fell 1.6%, the Dow lost 1.2%, and the Nasdaq dropped 2.2%. European and Asian markets also suffered steep losses.

Trump defended his actions, calling the numbers “phony” and insisting he needed officials he could “trust.” Economists and policy analysts warned this sets a dangerous precedent, suggesting political motivations could now affect data integrity.

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Meanwhile, Adriana Kugler, a member of the Federal Reserve’s rate-setting committee, announced her resignation, opening the door for Trump to influence central bank policy further. With markets rattled, analysts worry about growing uncertainty in economic governance as Trump's trade and personnel decisions reshape the global economic landscape.