(AFP) – US President Donald Trump said Monday that he would pick an “exceptional replacement” for his labor statistics chief, days after ordering her dismissal following a report that showed weakness in the jobs market. In a post on his Truth Social platform, Trump reiterated—without providing evidence—that Friday’s employment report “was rigged.” He alleged that the commissioner of labor statistics, Erika McEntarfer, had manipulated data to diminish his administration’s accomplishments, drawing sharp criticism from economists and a professional association.
“We’ll be announcing a new (labor) statistician sometime over the next three to four days,” Trump told reporters Sunday. He added Monday: “I will pick an exceptional replacement.” US job growth missed expectations in July, figures from the Bureau of Labor Statistics showed, and sharp revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic. Trump ordered the removal of McEntarfer hours after the figures were published. “We had no confidence. I mean the numbers were ridiculous,” Trump told reporters Sunday. He charged that McEntarfer came up with “phenomenal” numbers on his predecessor Joe Biden’s economy before the 2024 election.
Even as he called for more reliable data Monday, White House economic adviser Kevin Hassett conceded that the jobs market was indeed cooling. But Hassett maintained in a CNBC interview that this softening did not reflect the incoming effects of Trump’s flagship tax and spending legislation, signed into law early last month. US employment data point to challenges as companies took a cautious approach in hiring and investment while grappling with Trump’s sweeping—and rapidly changing—tariffs this year. The United States added 73,000 jobs in July, while the unemployment rate rose to 4.2 percent, the Department of Labor reported. Hiring numbers for May were revised down from 144,000 to 19,000, and the figure for June was shifted from 147,000 to 14,000. These were notably lower than job creation levels in recent years, particularly considering the economy lost jobs during the pandemic.
Over the weekend, Hassett defended McEntarfer’s firing in an NBC News interview: “The president wants his own people there so that when we see the numbers they are more transparent and more reliable.” Trump’s decision has come under fire. William Beach, who previously held McEntarfer’s post, stated that the move set a “dangerous precedent.” The National Association for Business Economics condemned her dismissal, saying large revisions in job numbers “reflect not manipulation, but rather the dwindling resources afforded to statistical agencies.”
In addition to a successor to McEntarfer, Trump is also expected to name a replacement for Federal Reserve governor Adriana Kugler. Kugler’s early resignation, effective Friday, creates a vacancy for Trump to fill as he pushes the independent central bank to lower interest rates. German Finance Minister Lars Klingbeil on Monday emphasized the importance of supporting “independent, neutral and proven institutions.” He said: “It is right that independent institutions remain independent and that politics do not interfere with them.” McEntarfer, a labor economist, was confirmed to the commissioner role in January 2024.
– Beiyi SEOW
© 2024 AFP
