US President Donald Trump’s decision to fire the head of the U.S. Bureau of Labor Statistics (BLS) has put the country’s data reporting mechanisms under scrutiny as global demand for reliable economic indicators grows. Erika McEntarfer, who was accused by Trump without evidence of manipulating US job numbers, is expected to be replaced within days.
The move has raised concerns about the accuracy and credibility of US data, which is closely watched by policymakers, businesses, and investors worldwide. The International Monetary Fund (IMF) counts on countries to provide accurate data to help it prepare forecasts, and a breach in credibility could have far-reaching consequences for global trade and economic stability.
The departure of McEntarfer has sparked fears that the spoils system will prevail, with party supporters being rewarded with government jobs. This raises concerns about the politicization of key statistics roles, which can undermine trust in data and make it difficult to restore confidence once it is lost.
Experts warn that the consequences of a Trump executive order on federal hiring intended to reserve posts for candidates who can prove their “dedication to American ideals” could be severe. If passed by Congress, this proposal would convert many jobs in federal economic statistical agencies into political positions, potentially leading to a loss of expertise and objectivity.
As the global economy faces increasing uncertainty, reliable data is more important than ever. The choice of replacement for McEntarfer will be a crucial test of whether the US can maintain its reputation as a leader in data collection and analysis.
Source: https://www.reuters.com/world/us/easy-lose-hard-restore-us-data-trust-line-2025-08-05