U.S. Job Market Plummets Under Trump’s Leadership: 70% Lower Job Growth, Unemployment Highest in Nearly 4 Years

U.S. Job Market Plummets Under Trump’s Leadership: 70% Lower Job Growth, Unemployment Highest in Nearly 4 Years

The first jobs report after President Trump fired the Bureau of Labor Statistics Commissioner for “rigging data” showed that regardless of who’s in charge of BLS, the U.S. job market is plummeting under President Donald Trump’s leadership. Job gains were nearly 70% lower than a year ago, with the economy adding just 22,000 jobs in August compared to 71,000 in August 2024. Unemployment rose to 4.3% – the highest in nearly four years – and job openings are at the lowest in nearly a decade.

This frozen labor market is met with a contracting manufacturing sector with this week’s ISM Manufacturing PMI Report showing six straight months of decline. Rather than delivering on promises of strong job creation, President Trump and his GOP allies are overseeing a period of economic slowdown with weak hiring and rising insecurity for working families.

Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted with the following statement:

“American workers took a huge hit in today’s devastating jobs report – more evidence that Trump’s promises to working families have fallen flat. The unemployment rate is the highest in nearly four years, the economy has lost nearly 40,000 manufacturing jobs this year alone, and millions of workers are unable to find full-time employment. Families are getting fewer chances to secure the American dream in Trump’s economy.”

This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s deeply unpopular actions are hurting the economy and harming America’s workers.

Economic Indicators on Trump’s Handling of the Economy

• The August jobs report from the U.S. Bureau of Labor Statistics (BLS) shows nearly every major industry showed losses or stagnation:
  • Far from ushering in a renaissance in U.S. manufacturing, manufacturing has lost 38,000 jobs in 2025 and construction jobs are negative on the year.
  • More than 1.9 million Americans have been out of work for at least six months, the highest in a year.
  • Millions are stuck in part-time jobs, with over 4.7 million people unable to find the full-time hours they want.
  • Youth unemployment remains high at 13.9%, triple the national rate, showing young workers are being shut out of opportunity.
  • Revisions reveal an even weaker economy. June was revised down into negative territory with 13,000 jobs lost, making clear that the summer slowdown was even worse than originally reported.
• Additional data further underscores that American families now face fewer opportunities:
  • The latest Job Openings and Labor Turnover Summary (JOLTS) data from BLS shows job openings have fallen to one of their lowest levels since 2020, and there are now more unemployed workers than job postings for the first time since April 2021.
  • ADP’s National Employment report for August showed just 54,000 private-sector jobs added, down sharply from 106,000 in July and confirming that even the private sector – which hasn’t faced reckless DOGE cuts – is slowing.
• In a significant turn, U.S. health care job openings fell in July to their lowest level since 2020, the Bureau of Labor Statistics reported. This decline is particularly notable as the sector has been a primary driver of employment growth, accounting for more than 40% of all new jobs created over the past three years.
• The Trump economy is leaving the manufacturing sector in the dust as a recent ISM Manufacturing PMI Report showed six straight months of decline. According to new U.S. Census data, U.S. factory constructions are steadily declining. Overall U.S. manufacturing construction activity is down 7% compared to last year and electronics/electrical manufacturing construction is down 14%.

Polling:

• Most Americans describe the U.S. economy as “struggling” (61%)  and/or “uncertain” (54%), according to a new CBS News/YouGov poll.
• Currently, most Americans trust the Fed as a new Economist/YouGov poll released this week found that most Americans (59%) say they trust the Fed’s decision-making on interest rates and more than half (52%) say they trust the Federal Reserve board to help guide the U.S. through economic uncertainty. Trump’s ongoing feud and politicization with the Federal Reserve – including his nomination of loyalist Stephen Miran who stated he will remain in his Trump White House job while serving on the Fed –  is eroding that trust and affecting public confidence in the institution.

Expert Commentary:

• Mark Zandi, Chief Economist at Moody’s, told Newsweek: “[I]t feels like [the economy’s] on the brink, it’s on the precipice of this recession. As soon as you see negative employment, payroll employment decline in a month, that’s when alarm bells should start going off, and I would anticipate that that’s going to happen, and that’s going to happen soon.”
• Lightcast senior economist and principal researcher Elizabeth Crofoot spoke to TheStreet about the shrinking labor market: “We usually see the labor force grow as the population grows, so when that doesn’t happen, that’s a red flag…There are just not the people to have the jobs.”
• Associate finance professor at the University of Illinois Tatyana Deryugina, who organized more than 450 economists to sign an open letter expressing support for Federal Reserve Governor Lisa Cook and U.S. central bank independence, explained: “I organized this letter because I know that most economists learn about and understand the importance of central bank independence. But it may not be obvious to the American public and at least some politicians how important that independence is for economic stability and what independence from political influence should look like in practice.”
• Nobel Prize-winning economist Paul Krugman wrote in a Substack blog about Trump’s pressure campaign with the Federal Reserve to lower interest rates: “He may think lower interest rates will make him more popular. He may think of low interest rates as a reward for good performance…Whatever he’s thinking, if he succeeds in trashing the Fed’s independence, he won’t like the results. He might succeed in pushing short-term rates down for a while. But the interest rates that really matter to people’s lives are long-term — like mortgage rates. And Trumpifying the Fed, thereby destroying its credibility, will send long-term rates higher — maybe much higher.”
• McDonalds CEO Chris Kempczinski told CNBC: “With middle and lower income consumers, they’re under a lot of pressure. If you’re upper income earning over $100k, things are good. Stock markets are near all time highs… What we see with middle and lower income consumers is actually a different story. It’s that consumer is under a lot of pressure in our industry. Traffic for lower income consumers is down double digits, and it’s because people are either choosing to skip a meal. So we’re seeing breakfast, people are actually skipping breakfast, or they’re choosing to just eat at home.”
• Groundwork Collaborative’s Executive Director Lindsay Owens reacted to the airlines lobbying DOT to remove major passenger consumer protections: “The airline industry has long been a pioneer in ruthless and deceptive pricing. Now they’re seeking to self-enforce the consumer protections they have a long track record of violating. If key passenger protections are further rolled back, the signal gets even clearer: in the Trump Administration, policies that put corporate profits over consumer wallets are allowed to soar freely.”
• Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted to the Senate Banking Committee confirmation hearing for Dr. Stephen Miran, President Trump’s nominee for the Federal Reserve Board of Governors: “Trump’s nomination of a yes-man like Stephen Miran to the Federal Reserve Board will only further undermine confidence in U.S. markets and the economy. From groceries to housing, families are feeling the squeeze from Trump’s price hikes. Miran’s intention to serve in both the Trump White House and on the Fed board simultaneously is further confirmation that he is committed to carrying out Trump’s orders no matter what the data says. This will result in even higher costs for mortgages, credit cards, auto loans, and everyday essentials. It is a lose-lose situation for American consumers and the American economy.”