President Donald Trump fired the commissioner of the Bureau of Labor Statistics on Friday after a brand new jobs report confirmed a serious slowdown of hiring in current months.
In a social media publish, Trump volleyed sharp criticism and baseless accusations at Erika McEntarfer, a Biden appointee who was confirmed by the Senate in 2024.
“I’ve directed my Workforce to fireplace this Biden Political Appointee, IMMEDIATELY,” Trump mentioned, after baselessly accusing McEntarfer of getting “faked” statistics.
McEntarfer has served within the federal authorities for 20 years, together with positions on the U.S. Census Bureau, the Govt Workplace of the President, and the Division of Treasury, in response to the BLS website.
Whereas the Trump administration selects a substitute, BLS Deputy Commissioner William Wiatrowski will function performing commissioner, in response to a publish on X from Secretary of Labor Lori Chavez-DeRemer.
Wiatrowski served as performing commissioner of the BLS from January 2017 to March 2019, making up a big share of Trump’s first time period in workplace, the BLS website mentioned.
The U.S. added 73,000 jobs in July, in response to information from the BLS. The determine marked a slowdown from 147,000 jobs added within the earlier month. The unemployment price ticked as much as 4.2%, maintaining it at near-historic lows.
The report additionally offered new estimates for 2 earlier months, considerably dropping the federal government’s estimate of jobs added in Might and June. The contemporary information indicated a notable slowdown in hiring as Trump’s tariffs took maintain over current months.
The Trump administration described the downward revisions as an unwelcome signal for the U.S. financial system.
“Clearly, they don’t seem to be what we wish to see,” Stephen Miran, chair of the White Home Council of Financial Advisers, mentioned on Friday.
Miran blamed the weak efficiency partly on uncertainty tied to the destiny of Trump’s home spending laws in addition to the last word final result of tariff coverage. Congress handed Trump’s spending measure earlier this month; extra lately, Trump introduced a contemporary spherical of tariffs late Thursday.
“Each of these sources of uncertainty are resolved,” Miran mentioned. “We count on issues to get materially stronger from right here, now that our insurance policies are beginning to kind into place.”
In Might, the U.S. added 19,000 jobs, a lot decrease than a beforehand estimated whole of 139,000 jobs, the BLS mentioned. Whereas in June, the financial system added simply 14,000 jobs, revising downward a earlier estimate of 147,000 jobs.
“Not solely was this a a lot weaker than forecast payrolls quantity, the monster downward revisions to the previous two months inflicts a serious blow to the image of labor market robustness,” Seema Shah, chief international strategist at Principal Asset Administration, informed ABC Information in an announcement.
The roles report arrives days after a separate authorities report showed better-than-expected financial development. U.S. GDP elevated at a 3% annualized price over three months ending in June, the report mentioned.
The strong studying steered the financial system has continued to avert a major tariff-induced cooldown. A one-off statistical quirk tied to a drop-off of imports appeared to partially account for the surge, nonetheless.
Some key measures of the financial system have confirmed resilient in current months, defying fears of resurgent inflation and a doable financial downturn. Inflation has increased for 2 consecutive months nevertheless it stays effectively under a peak attained in June 2022.
The hiring information arrives days after the Federal Reserve opted to carry rates of interest regular at its July assembly.
5 conferences and 7 months have elapsed for the reason that Fed final adjusted rates of interest. The federal funds price stands between 4.25% and 4.5%, preserving a lot of a pointy improve imposed in response to a pandemic-era bout of inflation.
Federal Reserve Chairman Jerome Powell talks to reporters following the common Federal Open Market Committee conferences on the Consumed July 30, 2025 in Washington, DC.
Chip Somodevilla/Getty Photographs
A significant slowdown within the labor market may immediate the Fed to grant larger consideration to a possible price reduce.
Trump has repeatedly urged the central financial institution to decrease rates of interest, saying the coverage would increase financial efficiency and cut back curiosity funds on authorities debt.
Fed Chair Jerome Powell, against this, has voiced some concern a couple of rekindling of inflation resulting from elevated tariffs. Importers sometimes cross alongside a share of the upper tax burden within the type of value hikes.
Talking at a press convention in Washington, D.C., on Wednesday, Powell mentioned tariffs had begun to contribute to cost will increase for some items however the final affect of the coverage stays unsure.
“Increased tariffs have begun to indicate by extra clearly into costs of some items however their general results on inflation and the financial system stay to be seen,” Powell mentioned. “Their results on inflation may show to be short-lived, however it’s doable the inflation results might be extra persistent.”
He added, “We’ll do what we have to do to maintain inflation underneath management.”
