President Donald Trump fired the commissioner of the Bureau of Labor Statistics on Friday after a brand new jobs report confirmed a significant slowdown of hiring in current months.
In a social media put up, 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 fireside this Biden Political Appointee, IMMEDIATELY,” Trump stated, 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 keeping with the BLS web site.
The U.S. added 73,000 jobs in July, in keeping with knowledge from the BLS. That figured marked a slowdown from 147,000 jobs added within the earlier month. The unemployment price ticked as much as 4.2%, holding it at near-historic lows.
The report additionally supplied new estimates for 2 earlier months, considerably dropping the federal government’s estimate of jobs added in Might and June. The contemporary knowledge 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. economic system.
“Clearly, they don’t seem to be what we need to see,” Stephen Miran, chair of the White Home Council of Financial Advisers, stated on Friday.
Miran blamed the weak efficiency partially on uncertainty tied to the destiny of Trump’s home spending laws in addition to the last word end result of tariff coverage. Congress handed Trump’s spending measure earlier this month; extra not too long ago, Trump introduced a contemporary spherical of tariffs late Thursday.
“Each of these sources of uncertainty are resolved,” Miran stated. “We anticipate issues to get materially stronger from right here, now that our insurance policies are beginning to type 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 stated. Whereas in June, the economic 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 significant 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 confirmed better-than-expected financial development. U.S. GDP elevated at a 3% annualized price over three months ending in June, the report stated.
The strong studying recommended the economic 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, nevertheless.
Some key measures of the economic system have confirmed resilient in current months, defying fears of resurgent inflation and a doable financial downturn. Inflation has elevated for 2 consecutive months however it stays properly beneath a peak attained in June 2022.
The hiring knowledge 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 Photos
A significant slowdown within the labor market might immediate the Fed to grant higher consideration to a possible price lower.
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, in contrast, has voiced some concern a few rekindling of inflation as a result of 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 stated tariffs had begun to contribute to cost will increase for some items however the final impression of the coverage stays unsure.
“Greater tariffs have begun to point out via extra clearly into costs of some items however their general results on inflation and the economic system stay to be seen,” Powell stated. “Their results on inflation might show to be short-lived, however it’s doable the inflation results could possibly be extra persistent.”
He added, “We’ll do what we have to do to maintain inflation underneath management.”
