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Trade adviser says Trump has “real concerns” about jobs data after president fires labor statistics chief

Summary:

U.S. Trade Representative Jamieson Greer defended President Trump’s decision to fire Commissioner of Labor Statistics Erika McEntarfer, citing concerns over the accuracy of federal economic data. This followed a July jobs report showing a hiring slowdown and significant downward revisions to previous months’ figures. Greer emphasized the President’s authority to dismiss executive branch officials but drew criticism from McEntarfer’s predecessor, William Beach, who called the action “groundless” and a “dangerous precedent.”

What This Means for You:

  • Impact on Economic Decision-Making: The firing raises questions about the reliability of federal economic data, which businesses and policymakers rely on for planning.
  • Potential Policy Shifts: Trump’s tariff hikes and the One Big Beautiful Bill Act may reshape manufacturing and trade policies, affecting industries reliant on foreign inputs.
  • Future Job Market Trends: Expect fluctuations in manufacturing jobs as new tax provisions and trade policies take effect.
  • Warning: Be cautious of potential politicization of economic data, which could undermine trust in federal statistics.

Original Post:

U.S. Trade Representative Jamieson Greer defended President Trump’s decision to fire a key official responsible for employment reports, telling CBS News on Friday that Mr. Trump has “real concerns” about the accuracy of federal economic data.

Greer spoke to “Face the Nation with Margaret Brennan” hours after the monthly jobs report showed a hiring slowdown in July and revised down earlier reports for May and June. Mr. Trump reacted by firing Commissioner of Labor Statistics Erika McEntarfer, claiming — without evidence — Friday’s jobs numbers were “RIGGED.”

“You know, even last year during the campaign, there were enormous swings in the jobs numbers, and so it sounds to me like the president has real concerns,” Greer told CBS News, adding that Mr. Trump’s issues with government labor data extend beyond Friday’s report.

“You want to be able to have somewhat reliable numbers. There are always revisions, but sometimes you see these revisions go in really extreme ways,” said Greer.

The Bureau of Labor Statistics’ reports are based on surveys of households and businesses. It’s common for the agency to revise prior months’ figures up or down as more data comes in. The May and June revisions — which cut the number of new jobs by a combined 258,000 — were the largest downward change in employment figures since 1979, excluding pandemic-era jobs reports, though that doesn’t mean the data was manipulated, as Mr. Trump claims.

Greer defended Mr. Trump’s right to fire McEntarfer, an economist who was nominated to the post by former President Joe Biden.

“The President is the President. He can choose who works in the executive branch,” Greer said.

The firing drew staunch criticism, with McEntarfer’s predecessor William Beach — who was first nominated in Mr. Trump’s first term — calling it “groundless” and a “dangerous precedent.”

“This rationale for firing Dr. McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers,” Beach said in a statement.

Friday’s report showed the economy added 73,000 jobs in July, below the 115,000 predicted by economists. The unemployment rate rose slightly to 4.2%, up from 4.1% a month earlier.

Greer predicts “big increase in manufacturing jobs”

The jobs report also showed a slight drop in manufacturing jobs last month. Mr. Trump’s tariff hikes are intended in part to boost American manufacturing — though critics warn some U.S.-based factories that rely on foreign-made inputs will be hurt by tariffs.

When asked about July’s manufacturing data, Greer — one of Mr. Trump’s trade negotiators — told CBS News he doesn’t “read tariff policy into that number.”

Instead, Greer argued that the numbers reflect conditions prior to the Trump-backed One Big Beautiful Bill Act that passed through Congress last month. He argued businesses were “waiting to see” if some of the bill’s tax provisions would pass, including parts that GOP lawmakers believe will encourage more business investment.

“I think that we’re going to see a big increase in manufacturing jobs now that we have the ‘one big, beautiful bill’ passed,” Greer said. “And I think that … our manufacturers know that they have a clear and certain path forward on that now.”

Extra Information:

For more insights on federal economic data, visit the Bureau of Labor Statistics. To understand the impact of tariffs on manufacturing, explore the U.S. Chamber of Commerce analysis.

People Also Ask About:

  • Why did President Trump fire Erika McEntarfer? Trump cited concerns over the accuracy of federal economic data, though no evidence was provided.
  • What are the implications of revising job reports? Revisions can affect economic planning and policymaking by altering perceptions of labor market conditions.
  • How do tariffs impact U.S. manufacturing? Tariffs may boost domestic production but harm industries reliant on imported materials.
  • What is the One Big Beautiful Bill Act? It’s legislation aimed at encouraging business investment through tax provisions.

Expert Opinion:

The politicization of economic data poses a significant risk to public trust in federal agencies. As William Beach noted, undermining the credibility of labor statistics could hinder informed decision-making across sectors.

Key Terms:

  • Federal economic data accuracy
  • Trump tariff policy
  • Manufacturing jobs growth
  • One Big Beautiful Bill Act
  • Labor statistics revisions



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