U.S. President Donald Trump has removed Erika McEntarfer, the commissioner of the Bureau of Labor Statistics (BLS), just hours after the release of job data that revealed a significant economic slowdown. The surprise dismissal follows continued market concerns over Trump’s aggressive tariff strategy.

Markets React to Weak Job Growth

According to Friday’s BLS report, the U.S. economy added only 73,000 jobs in July, well below the anticipated 109,000. Additionally, previously reported gains for May and June were revised down by a combined 250,000 jobs—marking the sharpest correction since the COVID-19 pandemic period.

These revisions sent shockwaves through Wall Street. All major U.S. stock indices closed significantly lower, as investors digested the dual blow of weaker employment numbers and the administration’s continued tariff escalation.

Accusations of Data Manipulation

President Trump took to Truth Social to claim that McEntarfer had “rigged the numbers” to make his administration and the Republican Party “look bad.” The post added fuel to concerns about political interference in nonpartisan federal agencies.

Prominent voices from across the political spectrum criticized the firing. Senator Chuck Schumer called Trump “a bad leader who shoots the messenger,” while former Treasury Secretary Larry Summers compared the action to behavior seen in authoritarian regimes, warning of long-term damage to public trust.

BLS Defends Standard Procedures

The Bureau of Labor Statistics regularly adjusts employment data based on updated survey inputs. Experts noted that even during President Biden’s term, 12 months of job data were revised downward by over 800,000 positions. Despite the unusual size of this month’s revision, analysts say the updates are consistent with trends showing labor market softening.

Heather Long, chief economist at Navy Federal Credit Union, described the report as a “gamechanger,” highlighting how Trump’s tariffs have created economic uncertainty that is now impacting job growth.

Response from McEntarfer and Economists

In a parting statement, Erika McEntarfer called her tenure as commissioner “the honour of my life” and emphasized the importance of transparent and independent economic data. The group Friends of BLS issued a statement warning that politicizing such institutions could erode public trust in government science.

Meanwhile, Trump has dismissed concerns, continuing to promote his policies as essential for revitalizing U.S. manufacturing and balancing global trade.