A top-tier economist has slammed the president’s claim that the federal jobs report was intentionally manipulated, warning that the politicization of economic data could have severe consequences.
At a Glance
- Former Treasury Secretary Larry Summers denounced accusations against the Bureau of Labor Statistics as “preposterous.”
- BLS released a July report showing only 73,000 jobs added, with downward revisions trimming May and June by about 258,000 jobs.
- President Trump dismissed BLS Commissioner Erika McEntarfer, calling the data “rigged” without presenting any evidence.
- Economists and former BLS leaders from both parties warned the firing undermines trust in official statistics.
- White House officials defended the move, citing a need for improved reliability and transparency in jobs data.
The Accusation That Shocked Economists
On August 1, 2025, the Bureau of Labor Statistics published its monthly employment report revealing only 73,000 jobs added in July, well below expectations. At the same time, revisions reduced previously reported gains in May and June by roughly 258,000 jobs.
President Trump responded by firing Commissioner Erika McEntarfer—confirmed by the Senate in 2024—and branding the numbers “rigged” without offering proof.
Watch now: Larry Summers Critiques Trump’s Job Number Manipulation and Federal Policies
The unexpected ouster of McEntarfer marks a rare instance of political intervention into a historically independent federal agency. Since its founding, the BLS has operated under strict nonpartisan guidelines, and its employment surveys underpin policymaking at every level of government. Critics say tampering with those numbers—whether through perception or personnel—risks destabilizing everything from financial markets to federal interest rates.
Summers Condemns Claim As “Preposterous”
Speaking on national television, former Treasury Secretary Larry Summers condemned Trump’s assertion of data manipulation as baseless and dangerous. Summers emphasized that employment statistics emerge from rigorous, decentralized methodologies managed by thousands of career staffers—making any partisan interference effectively impossible. “This is something they do in banana republics,” Summers warned.
Other economists echoed the alarm. William Beach, a former BLS commissioner under a Republican administration, said in an open letter that the agency’s protocols are among the most rigorously verified in the world. Independent observers have long held that the monthly jobs report is one of the few economic instruments still universally respected across party lines.
Warnings From Both Sides of the Aisle
Outrage has spilled into Congress, with Republican and Democratic lawmakers alike voicing concern that the firing signals a broader war on objective data. Senator Thom Tillis called the move “deeply troubling,” while Senator Elizabeth Warren accused the White House of “manipulating the truth through fear.”
Even conservative think tanks issued statements calling for protections on statistical agencies. A joint press release from economists at AEI and Brookings said public confidence in labor data “must not be politicized—no matter the administration.”
The concern is not merely theoretical: investors rely on these reports to gauge market health, while central banks use them to guide monetary policy. Undermining that trust could ripple through global credit systems.
The White House Justifies the Shakeup
Trump officials, however, maintain that the agency has become “too opaque and too erratic.” Kevin Hassett, now head of the National Economic Council, argued the administration was acting to “restore transparency” after multiple months of what he termed “wild swings” in data.
Though no concrete evidence was offered to support those claims, a new acting commissioner has already been installed, with instructions to “review and streamline” internal procedures. Administration allies in Congress have promised to hold hearings on the matter, but analysts remain skeptical that any irregularities will be found—beyond those introduced by political pressure itself.
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