Trump orders firing of jobs chief over 'rigged' data claim
US job growth missed expectations in July, Labour Department data showed, and revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic.
Trump lashed out at the department's Commissioner of Labour Statistics – Erika McEntarfer – after the report, writing on social media that the jobs numbers "were RIGGED in order to make the Republicans, and ME, look bad."
In a separate post on his Truth Social platform, he charged that McEntarfer had "faked" jobs data to boost Democrats' chances of victory in the recent presidential election.
"McEntarfer said there were only 73,000 Jobs added (a shock!) but, more importantly, that a major mistake was made by them, 258,000 Jobs downward, in the prior two months," Trump said, referring to latest data for July.
"Similar things happened in the first part of the year, always to the negative," he added.
But he insisted that the world's biggest economy was "booming" under his leadership.
The United States added 73,000 jobs last month, while the unemployment rate rose to 4.2 per cent from 4.1 per cent, said the Department of Labour earlier Friday.
Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000.
This was notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs.
The employment data points to challenges in the key labour market as companies took a cautious approach in hiring and investment while grappling with Trump's sweeping – and rapidly changing – tariffs this year.
The numbers also pile pressure on the central bank as it mulls the best time to cut interest rates.
With tariff levels climbing since the start of the year, both on imports from various countries and on sector-specific products such as steel, aluminium and autos, many firms have faced higher business costs.
Some are now passing them along to consumers.
"This is a gamechanger jobs report. The labour market is deteriorating quickly," said Heather Long, chief economist at the Navy Federal Credit Union.
She added in a note that of the growth in July, "75 per cent of those jobs were in one sector: health care."
"The economy needs certainty soon on tariffs," Long said. "The longer this tariff whiplash lasts, the more likely this weak hiring environment turns into layoffs."
But it remains unclear when the dust will settle, with Trump ordering the reimposition of steeper tariffs on scores of economies late Thursday, which are set to take effect in a week.
The president also raised tariffs on Canadian imports, although broad exemptions remain.
Mortgage Bankers Association economist Joel Kan said that for now, "goods-producing industries saw contraction for the third straight month."
"Service industries involved in trade also saw declines in job growth, potentially a result of the uncertain tariff environment, as businesses either put their activity on pause or pulled back altogether," Kan added in a note.
A sharp weakening in the labour market could push the Federal Reserve toward slashing interest rates sooner to shore up the economy.
On Friday, the two Fed officials who voted this week against the central bank's decision to keep rates unchanged warned that standing pat risks further damaging the economy.
Both Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller argued that the inflationary effects of tariffs were temporary.
They added in separate statements that the bank should focus on fortifying the economy to avert further weakening in the labour market.
Putting off an interest rate cut "could result in a deterioration in the labour market and a further slowing in economic growth," Bowman added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
30 minutes ago
- New Straits Times
Brexit's parallels with Trump tariffs tell a tale
In figuring out why the United States tariff shock hasn't sent the economy or financial world into a tailspin, Britain's exit from the European Union trade bloc provides something of a playbook — and without a particularly happy ending. Aside from vast differences in economic scale and global reach, the two episodes bear some comparison in how they upended years of deeply integrated free trade and possibly in how business, the economy at large and financial markets reacted. The 2016 Brexit referendum and Trump's tariffs this year were each widely billed as economic shocks that would send the financial world into paroxysms. They didn't, at least not at the outset. To be sure, both were followed by dramatic downward lurches in the two countries' currencies. But, to some extent, the steep drop in sterling after the referendum vote and the dollar's plunge on President Donald Trump's tariff plan this year helped offset some of the wider impact, at least on stock markets that are loaded with global firms with outsized foreign revenue. More broadly, however, the difficulty in isolating their immediate net impact means no "big bang" economic crisis unfolds to prove critics right, even if their enduring legacy turns out to be a slow burn of economic potential and lost output, often obscured by multiple other crosswinds. In Britain's case, the seismic effects of the Covid-19 pandemic distorted any attempt to easily assess Brexit when it actually happened. Tortuous negotiations with the EU meant the UK's departure eventually occurred on the eve of the health crisis in 2020 and the new trade rules did not come into force until a year later. But in the four years between the referendum surprise and the pandemic, the UK economy never entered a recession nor recorded a negative quarterly GDP print — confounding pro-EU supporters at the time and bolstering the Brexit lobby. Emerging from the twin hits, however, the economy has almost flatlined since. What's more, it's taken more than eight years for the pound's effective exchange rate to recover its pre-referendum levels. Few mainstream economists now doubt that Brexit has taken a serious toll on the UK economy. One academic study by a number of Bank of England economists earlier this year concluded that uncertainty following the referendum resulted in little change in goods exports and imports before the exit was finalised. But after the new rules hit, UK imports fell three per cent and overall exports fell 6.4 per cent, largely because of the 13 per cent hit in exports to the EU. While this slump seems relatively modest compared with the official forecasts of the longer-term hit, the pain has been borne disproportionately by small businesses. And the cumulative damage to London and the service sector over the next 10 years continues to worry the City. The US tariff story is of a completely different order, of course, as it will reverberate across the world economy. But there are some parallels, not least in certain aspects of the market reactions and the initial resilience. Economists estimate that the tariffs could lop anywhere from 0.5 per cent to one per cent off US gross domestic product over time. That's a US$150 billion to US$300 billion hit, which, though painful, would not be an instant crisis for an economy that's growing at a roughly two per cent annualised rate, where imported goods represent just 11 per cent of GDP and where tech and AI trends are generating considerable tailwinds. But as former White House economic adviser Jason Furman said in a New York Times essay last week, the tariff damage is likely not a one-off hit. The loss of 0.5 per cent of GDP, he argued, is "the equivalent of every household in America taking around US$1,000 and lighting it on fire, then doing it again every year. Forever." In the end, the main point of the British comparison is to show how extreme partisan arguments on the pros or cons of such giant economic policy changes don't necessarily get resolved cleanly in adaptive, hardy and hyper-complex economies. The latest YouGov opinion poll shows 56 per cent of Britons now think it was wrong to leave the EU, some nine years after their narrow vote to leave. The jury on Trump's tariffs is still out.
The Sun
an hour ago
- The Sun
Russia hints at deploying mid-range missiles after ending INF moratorium
MOSCOW: Russia on Tuesday suggested it could deploy intermediate-range missiles after ending a self-imposed moratorium on producing or deploying the weapons, which were banned for decades under a Cold War treaty with the United States. Washington and Moscow had prohibited missiles with a range of 500 to 5,500 kilometres (300-3,400 miles) under the 1987 Intermediate-Range Nuclear Forces (INF) Treaty. But US President Donald Trump withdrew from the deal during his first term in 2019, accusing Russia of failing to comply. The Kremlin said at the time it would continue to abide by a moratorium if the United States did not deploy missiles within striking distance of Russia. Russia's foreign ministry said Monday it was ending the self-imposed restrictions, with the Kremlin hinting on Tuesday that Moscow could soon deploy the previously-banned missiles. 'There are no longer any restrictions in Russia in this regard. Russia no longer considers itself limited in any way,' President Vladimir Putin's spokesman, Dmitry Peskov, told reporters. Moscow was 'entitled, if necessary, to take appropriate measures' on the deployment of the missiles, he said, adding that there would be no public announcement if Russia decided to station the missiles. Putin said last year Russia should start producing mid-range missiles -- capable of carrying nuclear warheads -- after the United States sent some launch systems to Denmark for training exercises. Russia has also accused the United States of sending the systems to the Philippines and Australia for drills. 'The United States and its allies have not only openly outlined plans to deploy American land-based INF missiles in various regions, but have also already made significant progress in the practical implementation of their intentions,' Russia's foreign ministry said in a statement. The move comes after Trump announced the deployment of two nuclear submarines 'in the region' amid an online row with Dmitry Medvedev, Russia's former president. Medvedev on Monday said Russia's foes should be on standby. 'This is a new reality all our opponents will have to reckon with. Expect further steps,' he said in his first social media post since the row with Trump erupted. - AFP
Borneo Post
an hour ago
- Borneo Post
Sungai Bintangor Bridge officially opens to public, joins Kuching's cityscape as iconic new landmark
KUCHING (Aug 5): The much-anticipated Sungai Bintangor Bridge was officially launched by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg in a ceremony held at the bridge site at 8.30pm this evening. Upon his arrival, Abang Johari attended a briefing session before delivering his speech, where he hailed the project as an engineering masterpiece and a potential tourism draw for Kuching, likening it to iconic bridges in Europe. 'This bridge reminds me of the iconic bridge one sees in places like Rotterdam. I think we now can say we have our own Rotterdam in Kuching now. He described the bridge as a catalyst for modern urban development and a symbol of smart city progress in the state capital, expressing hope that the surrounding areas would be further developed and beautified to benefit local communities. During the event, Deputy Minister for Utility (Sarawak Energy and Petros) and Satok assemblyman Datuk Ibrahim Baki proposed renaming the bridge after the Premier's late wife, Datuk Amar Juma'ani Tuanku Bujang, as a gesture of gratitude for her contributions to the people of Satok. 'I am sure with this name suggestion for the bridge, the Premier will agree with it. This name suggestion is also as a sign of gratitude to the sacrifices made by the late wife of the Premier to the people of Satok,' said Ibrahim. Deputy Premier Datuk Amar Douglas Uggah also addressed the audience, calling the bridge 'iconic' and one of its kind in Malaysia in terms of design. Located along Jalan Datuk Ajibah Abol, the new bridge spans the width of Sungai Bintangor and serves as a crucial addition to Kuching city's road network. The cable-stayed structure, featuring a four-lane dual carriageway and an iconic central tower with intricate carvings, is set to become not only a vital traffic conduit but also a new urban landmark and tourism draw for the state capital. Fully funded by the Sarawak government, the RM50.6 million bridge began construction in December 2019, but progress was hampered by the Covid-19 pandemic and challenges in relocating underground utilities, leading to several delays. Spanning 114.34 metres, the bridge also comes with upgraded sections of Jalan Datuk Ajibah Abol, enhancing connectivity for residents in Satok and surrounding neighbourhoods. It is expected to significantly ease traffic congestion in the area by providing an alternative route for motorists. The project is among the Sarawak government's high-impact infrastructure initiatives aimed at boosting regional development and strengthening Kuching's urban mobility network. The bridge was actually partially opened to the public in February this year. Also present during the ceremony were Deputy Premier Datuk Amar Dr Sik Kui Hian, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki and other officials.
