US President Donald Trump has fired the head of the Bureau of Labor Statistics, Erika McEntarfer, after a disappointing jobs report and growing criticism over his escalating trade tariffs sparked turmoil in global markets.

Trump accused her of manipulating jobs data for political reasons, though he did not provide any evidence.

The move, announced on social media, has drawn widespread alarm from economists and market analysts, many of whom see it as direct interference in the integrity of economic reporting.

The decision came hours after the release of new labour data showing that only 73,000 jobs were added in July, far below expectations and previous estimates for May and June were revised down by 250,000.

“We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,” Trump wrote.

In her response, McEntarfer said: “The honour of my life has been serving as commissioner. The work of this agency is vital and important. I thank the dedicated civil servants who give their best every day for their service to this nation.”

McEntarfer had worked in government for more than two decades before being appointed commissioner in 2023. She was confirmed with near-unanimous support in the US Senate.

The Labor Department, which oversees the Bureau of Labor Statistics (BLS), announced that Deputy Commissioner William Wiatrowski would take over in the interim. The department did not respond to requests for further comment.

Economists and policy experts have criticised the firing, warning that it could damage public trust in US economic statistics. “Clearly, this is a step in a very bad direction,” said Ryan Sweet, chief US economist at Oxford Economics. “If there are any questions around the integrity of the data ... it's going to create a lot of problems.”

Sweet also explained that data revisions are normal, especially in fast-changing conditions.

“Revisions are normal. They're trying to get this right,” he said, adding that the large changes might reflect a slowdown in small businesses, which are often slower to respond to surveys and more vulnerable to tariffs.

Michael Strain, director of economic policy studies at the American Enterprise Institute, defended McEntarfer’s performance. “It is imperative that decisionmakers understand that government statistics are unbiased and of the highest quality. By casting doubt on that, the President is damaging the United States,” he said.

Trump, however, remained firm in his stance. “Why should anybody trust numbers?” he told reporters. “I believe the numbers were phony, just like they were before the election, and there were other times – so you know what I did? I fired her, and you know what I did? The right thing.”

Jed Kolko, senior fellow at the Peterson Institute for International Economics, said the firing marked a major turning point in how the US handles data collection.

“For six months, I've said that threats to economic data have been more collateral damage than intentional harm. No longer. Firing the head of the BLS is five-alarm intentional harm to the integrity of US economic data and the entire statistical system,” he said.

The shakeup at the BLS happened as global financial markets reacted negatively to Trump’s renewed push to raise tariffs on imports from several countries.

Stock markets in the US, Europe and Asia all dropped, with economists warning that Trump’s trade policy could hurt economic growth.

In the US, the S&P 500 fell 1.6%, the Dow Jones dropped 1.2%, and the Nasdaq declined 2.2%. European markets also sank, with France’s CAC 40 closing 2.9% lower, Germany’s DAX falling 2.6%, and the UK’s FTSE down 0.7%. In Asia, South Korea’s leading index dropped 3.8%, Hong Kong’s Hang Seng slipped 1%, and Japan’s Nikkei fell 0.6%.

Trump’s tariff policy has already caused market volatility. Earlier this year, when he announced similar trade measures, shares in the US dropped more than 10% in a week.

Although he later suspended some of the most aggressive proposals, the average tariff rate has still climbed to about 17%, up from less than 2.5% at the beginning of the year.

“The reality is Trump got emboldened by the fact that markets came right back,” said Michael Gayed, a portfolio manager at The Free Markets ETF. “Now he's going to try his luck again.”

As economic pressure mounts, Trump also renewed his criticism of Federal Reserve chair Jerome Powell, accusing him of not acting fast enough to cut interest rates.

On the same day, Adriana Kugler, a voting member of the central bank’s committee whose term was due to end in January, announced she would step down, giving Trump the opportunity to nominate a replacement.

The unfolding situation has raised deep concerns among economists, investors and political observers about the future of independent data reporting in the US and the wider impact of Trump’s economic decisions on global financial stability.