【By Observer News, Zhang Jingjuan】According to China Central Television news, U.S. President Trump recently accused the Director of the Bureau of Labor Statistics, Erika McEntarfer, of "manipulating employment data" and ordered her dismissal.

This decision has raised doubts about the future independence of the agency responsible for reporting key economic data, drawing condemnation from economic experts and potentially further politicizing the heated debate over whether federal budget cuts and layoffs have weakened the United States' ability to track major economic statistics. However, the White House showed no signs of backing down.

On August 3rd, Kevin Hassett, the Director of the National Economic Council, publicly defended Trump's sudden decision to fire McEntarfer, but did not provide evidence supporting Trump's claims.

Hassett expressed concerns about the quality of the data, questioning whether the statistical system had recovered from the chaos of economic data collection during the pandemic. He argued that frequent large-scale revisions were "normal and widespread," and understandable given the volatility of the job market. However, he stated that large-scale revisions continued even after the pandemic.

"Currently, the Bureau of Labor Statistics data is not much better than during the pandemic, and we need to find out why. I think the president was right to demand new leadership," Hassett said in an interview. "The president wants people he trusts there so that the data we see will be more transparent and reliable."

Hassett IC photo

When asked to provide evidence supporting Trump's claim that the data was "manipulated," Hassett changed the subject. He claimed that the latest report included a downward revision of employment growth data for the previous two months as "concrete evidence" itself.

"If I were in charge of the Bureau of Labor Statistics, with such significant and politically impactful data revisions, I would definitely issue a detailed report explaining the reasons, but we haven't seen such a report," Hassett said.

Hassett believed there was misconduct, while William Beach, the former director of the Bureau of Labor Statistics appointed by Trump in his first term, argued that these revisions were the result of McEntarfer's efforts to do the job better and obtain more information.

Beach rejected the claim that McEntarfer manipulated the data for political purposes on August 3rd, stating that when the director saw the data, all the data was already prepared and entered into the computer system.

"I don't know of any basis for this dismissal; it really damages the statistical system and undermines the credibility of the Bureau of Labor Statistics," Beach said. "Studies show that the data from this agency has improved significantly compared to two or three decades ago, including any revisions to initial data."

Surveys show that public trust in the accuracy of federal statistics such as unemployment rates is higher than trust in the federal government as a whole. In June, a national survey conducted by the research company SSRS found that about 70% of adults at least somewhat trusted federal statistics, while only 51% held the same view of the federal government as a whole.

Lawrence H. Summers, the former U.S. Treasury Secretary, also stated that the accusation of data manipulation was "absurd," saying, "These data are compiled by a team of hundreds following detailed procedures in the manual. The director of the Bureau of Labor Statistics could never manipulate these data."

McEntarfer, Bureau of Labor Statistics

Last Friday (August 1st), the Bureau of Labor Statistics released a report stating that the U.S. added 73,000 jobs in July, far below market expectations. At the same time, the report significantly revised down the employment data for May and June, with May's job additions being revised from 144,000 to 19,000 and June's from 147,000 to 14,000, totaling a revision of 258,000 jobs for the two months.

The Bureau of Labor Statistics stated in the report that the revisions were "based on subsequent reports from businesses and government agencies, as well as recalculation due to seasonal factors."

However, Trump was very dissatisfied with the latest employment data. He immediately posted on social media, claiming that "employment data is being artificially manipulated to make Republicans and me look bad." He also accused McEntarfer of "artificially inflating" employment data before the 2024 U.S. election to "increase the chances of Democratic presidential candidate Harris winning."

He claimed that the current employment data was compiled by "officials appointed by former President Biden" and ordered McEntarfer's immediate dismissal, to be replaced by "more capable individuals."

McEntarfer previously worked at the Census Bureau, the Department of the Treasury, and the White House, and was nominated by former President Biden in July 2023 to serve as the Director of the Bureau of Labor Statistics. The U.S. Senate confirmed the nomination in January 2024 with a vote of 86 to 8, and then-Senator of Ohio, Vice President Vance, also voted in favor of McEntarfer.

A spokesperson for the Bureau of Labor Statistics confirmed that McEntarfer was dismissed on August 1st local time, and Deputy Director William Viatrovich will take over as acting director.

Trump has always been focused on U.S. employment data, using it as a tool to criticize opponents or boast during the election period. For months, he has repeatedly boasted that the U.S. now has the "hottest economy in the world." He has repeatedly told audiences that this evaluation comes from people he has spoken to, sometimes mentioning Middle Eastern monarchs, European leaders, and sometimes American entrepreneurs.

However, foreign media pointed out that the latest monthly report from the Bureau of Labor Statistics shows that the labor market can at best be described as lukewarm, with only 106,000 new jobs added over the past three months—far below previous estimates and insufficient to prevent the unemployment rate from rising. The report also significantly revised down the estimated new jobs for May and June, indicating that Trump's tariff policies have begun to severely hurt the economy.

In response to being fired, McEntarfer commented on social media, saying, "It was my honor to serve as the Director of the Bureau of Labor Statistics, working alongside many dedicated civil servants who bear the responsibility of measuring the weight of this vast and dynamic economy. This is a crucial and meaningful job, and I thank them for their contributions to this country."

This article is an exclusive publication by Observer News. Unauthorized reproduction is prohibited.

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