Donald Trump's firing of the head of the Bureau of Labor Statistics (BLS) has raised concerns that the United States could join countries like Argentina and Greece, where official economic data have been discredited due to political interference. Erika McEntarfer was dismissed last Friday after Trump accused her agency of 'faking' employment figures for 'political purposes', without providing evidence.
The BLS, which has been the official source for US labour statistics since 1884, reported that the economy added 73,000 jobs in July, below expectations. It also revised down job creation estimates for May and June by a combined 258,000. Trump reinforced his accusations on social media, calling the reports 'rigged'.
Erica Groshen, McEntarfer's predecessor under Barack Obama, warned earlier this year that a civil-service rule change could lead to the 'politicisation' of statistical agencies. She cited Greece and Argentina as examples where government manipulation of data led to loss of credibility. In Argentina, the IMF stopped accepting inflation figures in 2013 after officials understated the rate for six years. In Greece, statisticians were accused of making deficits 'disappear' to qualify for the euro, leading to a debt crisis and bailouts.
The rule change, rolled out in April, reclassified about 50,000 permanent civil servants as 'policy/career' status, making them easier to remove. It allows agencies to expeditiously remove employees for poor performance or misconduct, including 'injecting partisanship'. Groshen noted that the president would determine who is reclassified, raising fears that BLS leaders could be fired for releasing statistics unfavourable to the president's agenda.
The change stems from an executive order Trump issued on his first day back in the White House, stating that policy-influencing civil servants must be accountable to the president. Experts warn that the US tradition of impartial data collection is now at risk, potentially undermining economic stability and international reputation.
