President Trump’s firing of Bureau of Labor Statistics director Erika McEntarfer following July’s jobs report has sparked controversy over the reliability of government employment data. Trump claimed the June figures were “RIGGED” to make Republicans “look bad,” though he provided no evidence. These are the 5 takeaways from the original article.
1. Trump fired the BLS director after weak jobs data
President Trump fired Erika McEntarfer, the Biden-appointed director of the Bureau of Labor Statistics, following a jobs report showing weak July hiring and significant downward revisions to May and June figures.
2. Economists and Wall Street still trust the data
Despite Trump’s claims, most economists consider the BLS a nonpolitical agency focused on accuracy, with Wall Street continuing to rely on its reports for investment decisions.
3. The revised data aligns with other economic indicators
The controversial downward revisions actually bring the government’s numbers more in line with other economic indicators, such as ADP’s private payroll data that had already shown a hiring slowdown.
4. Revisions are normal but have been larger recently
The May and June revisions were the largest outside of a recession since 1967, reflecting challenges in capturing economic turning points and changes in business formation patterns.
5. Survey response rates have declined significantly
Company response rates to government surveys have fallen from about 60% a decade ago to around 40% today, creating challenges for data collection that have worsened since the COVID pandemic.
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