Key Points
- S. economy adds just 22,000 jobs in August, unemployment rises to 4.3%.
- Trump’s firing of BLS chief sparks fears of politicised data.
- Trade tariffs blamed for slowing hiring and higher costs.
- Economists warn that U.S. economic credibility at risk.
WASHINGTON: President Donald Trump faced renewed criticism on Friday after the U.S. economy delivered another disappointing jobs report, weeks after he abruptly fired the commissioner of the Bureau of Labour Statistics (BLS) and accused the agency of manipulating data.
According to media reports, the August employment figures showed the economy added only 22,000 jobs, a fraction of what analysts had projected, while the unemployment rate climbed to 4.3%, the highest level in more than three years. The latest report also revised June’s numbers downward to show a net loss of 13,000 jobs, marking the first monthly contraction in hiring since the COVID-19 pandemic.
Trump’s removal of BLS Commissioner Erika McEntarfer in early August, after she oversaw two consecutive months of weak data, has intensified debate about political interference in economic reporting. He replaced her with conservative economist E.J. Antoni, a senior fellow at the Heritage Foundation, drawing alarm from critics who argue that the credibility of government statistics is at stake.
Economists note that the slowdown in job creation coincides with Trump’s aggressive trade tariffs, particularly on Chinese imports, which have raised costs for U.S. manufacturers and dampened business investment. Hiring has slowed most sharply in manufacturing, retail and logistics, the sectors seen as especially vulnerable to rising input costs and weaker global demand.
While the White House insists that stronger growth is imminent, the timing of the poor labour figures has been politically damaging. Trump has made employment gains a key part of his re-election message, often citing stock market records and wage increases. The latest figures, however, show average hourly earnings rising only slightly and labour force participation falling slightly.
Financial markets gave out mixed reactions to data. Equities in New York pared early gains as traders reassessed the outlook for interest-rate cuts by the Federal Reserve. Investors continue to expect the Fed to reduce rates when policymakers meet on Sept. 17, but the weak jobs print has fueled questions over whether easing will be enough to offset trade-driven headwinds.
The controversy over the BLS adds a layer of uncertainty. Independent statisticians have long regarded the bureau as a gold standard for impartial reporting, and several former officials warned this week that undermining its independence risks eroding confidence not just in jobs data but in the wider credibility of U.S. institutions.
For now, Trump’s allies insist the slowdown is temporary, pointing to tax cuts and deregulation as long-term growth drivers. But with unemployment rising and hiring momentum faltering, the president’s handling of the economy — once considered his strongest asset — is under closer scrutiny than at any point in his tenure.
