Ex- Labor Statistics Chief Sounds Alarm About Administration Meddling with Economic Statistics

The former director of US labor statistics has warned that recent administration actions could threaten the independence of key government institutions.

Dismissal Seen as Concerning Move

Erika McEntarfer, formerly the commissioner of the federal labor data agency, described her abrupt termination as “risky” and urged the public to be aware to potential political influence in economic data releases.

“Markets have to trust that the data aren't manipulated,” McEntarfer said. “Removing chief data officials for publishing data officials don't like has serious economic implications.”

Statistics Revision Came Before Termination

The bureau handles gathering and releasing key economic figures. In August, it adjusted downward earlier job numbers estimates for May and June by more than 250,000. Hours later, she was dismissed.

It was the first time a current commander-in-chief has dismissed the leader of the statistics agency, raising concern among economists about the future objectivity of the institution.

Proposed Nominee Creates Concerns

Since the firing, the administration has proposed EJ Antoni, an economist from a right-leaning policy institute and co-author to Project 2025, to run the agency. He has previously criticized the BLS and yet to received confirmed by Congress.

At present, an experienced staff member, William Wiatrowski, is acting as acting commissioner.

Global Examples Show Danger

She pointed out that nations like Argentina, Greece, and Turkey have previously experienced comparable political meddling in statistical data, leading to eroded confidence, deepened economic crises, higher prices, and higher borrowing rates.

“Interfering with economic statistics is like tampering with traffic signals,” McEntarfer explained. “Cars don't know how to go, congestion gets worse. Nobody believes it’s good for the country.”

Budget Cuts and Modernization Efforts

Prior to her firing, McEntarfer had been pushing for updating the agency's data gathering methods. However, budget was dried up, particularly after alleged “efficiency” policies led to a 20% reduction in employees.

She had expected that once certain changes in administration, the agency could return to “normalcy.” However, she was fired via a brief message from the administration.

Final Remarks

McEntarfer reiterated that up to the point she was let go, the data produced by the bureau were reliable and independent. Additionally, she voiced unease about the direction of additional economic institutions, including the Federal Reserve, which has also received attacks from the current administration.

“People ought to get to live in a nation where you do not know who the chief statistician is,” she remarked.