The recently dismissed chief of US labor data has now cautioned that recent administration actions may undermine the integrity of key government institutions.
Dismissal Viewed as Dangerous Move
Erika McEntarfer, who was the commissioner of the BLS, called her sudden firing as “dangerous” and urged the public to pay attention to possible political interference in economic data releases.
“Economies have to believe that the statistics aren't biased,” she emphasized. “Firing top data officials for releasing data officials don't like carries serious financial consequences.”
Data Revision Came Before Firing
This bureau is responsible for collecting and releasing critical economic data. In August, it revised downward earlier employment growth figures for May and June by more than 250,000. Shortly after, she was fired.
This marked the initial time a current president has fired the head of the data bureau, raising alarm among economists regarding the future objectivity of the institution.
Proposed Nominee Creates Concerns
Following the dismissal, the White House has nominated EJ Antoni, a scholar from a conservative policy institute and co-author to a conservative agenda, to run the bureau. Antoni has in the past criticized the BLS and has not been confirmed by Congress.
Currently, an experienced official, William Wiatrowski, is serving as acting head.
International Cases Show Risk
McEntarfer pointed out that nations such as Argentina, Greece, and Turkey had in the past experienced similar government interference in statistical data, resulting in eroded confidence, worse financial crises, elevated inflation, and increased borrowing costs.
“Interfering with official statistics is like messing with street signals,” she said. “Drivers won't know how to go, traffic gets worse. Nobody believes it’s beneficial for the nation.”
Funding Reductions and Updates Plans
Even her firing, McEntarfer had been pushing for modernizing the agency's information gathering methods. But, budget had reduced, especially after so-called “efficiency” policies led to a 20% reduction in employees.
She had hoped that once recent changes in leadership, the agency could return to “routine.” Instead, she ended up dismissed via a brief message from the administration.
Closing Remarks
She reiterated that up to the moment she was fired, the numbers released by the bureau were reliable and free from influence. She also expressed unease about the direction of other key institutions, such as the Federal Reserve, which has also received attacks from the present government.
“People should get to live in a nation where you don't know who the head data official is,” McEntarfer remarked.
