Job reductions surged in August, according to a staff replacement firm's report
In a move that has sparked controversy, President Donald Trump fired Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), on September 5, 2025. McEntarfer, a Joe Biden appointee, had been confirmed by a bipartisan Senate vote in 2024 and had served in the federal government for two decades prior to her dismissal.
The job cuts announcement came at a time when the U.S. job market was showing signs of a slowdown. U.S. companies announced nearly 86,000 job cuts in August, a 39% increase from the previous month. This figure marks the largest number of job cuts in the month of August since 2020.
Overall, government jobs data indicated a sharp slowdown in hiring over the summer. The U.S. added an average of about 35,000 jobs over three months ending in July, a significant cooldown from the previous period. August saw the largest number of job cuts, with the pharmaceuticals and finance industries suffering the brunt of the reductions.
Trump claimed without evidence that the jobs data had been "manipulated" by McEntarfer. However, McEntarfer, in a social media post after her dismissal, expressed gratitude for the opportunity to serve as Commissioner of BLS. She also stated that it is vital and important work and thanked the many dedicated civil servants tasked with measuring a vast and dynamic economy.
Some analysts previously stated that warnings about a recession are premature. However, the current job market trends suggest otherwise. The overall unemployment rate of 4.2% continues to hover near a historically low level, but the slowdown in hiring and the increase in job cuts could indicate a potential economic downturn.
Trump's dismissal of McEntarfer has been condemned by William Beach, a former commissioner of the Bureau of Labor Statistics, who was appointed by Trump. Beach stated that the firing was an attack on the independence of the BLS and could undermine the credibility of the jobs data.
In response to Trump's dismissal, Trump nominated E.J. Antoni, chief economist at the conservative-leaning Heritage Foundation, as a replacement for McEntarfer. Antoni's nomination is expected to face scrutiny from Democrats, who have criticised his past statements on the economy.
The jobs report, which features revisions of previous months' data, is expected to be released soon. The report is anticipated to show 75,000 jobs added in August. Whether this will be enough to reverse the current trend of job losses remains to be seen.
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