Trump’s July 4th Jobs Report Shows American Dream Slipping Out of Reach for Many Working Families
Trump’s July 4th Jobs Report Shows American Dream Slipping Out of Reach for Many Working Families
Labor market shows signs of lag while hiring is concentrated in limited sectors insulated from economic reality
Today’s jobs report shows the labor market added only 57,000 jobs in June, with April and May hiring revised down by 74,000 fewer jobs than previously reported. The unemployment rate changed little at 4.2%. A total of 720,000 people left the labor force last month, pushing the share of Americans working or looking for work to its lowest level since March 2021. Beneath the headline, workers are less confident they can find a job, higher prices continue to eat into paychecks, and families feel worse about their financial situation.
The share of unemployed workers who have been without a job for at least six months remains above one in four, up sharply from one year ago, while a growing share of workers are stuck in part-time jobs because they cannot find full-time work. Though President Trump campaigned on saving “Black jobs,” the unemployment rate among Black Americans is far higher than the national rate, reflecting the president’s unequal economy. Under President Trump, the economy is leaving working families with fewer opportunities to get ahead.
Groundwork Collaborative’s Chief of Policy and Advocacy, Alex Jacquez, released the following statement:
“Today’s weak jobs numbers are grim warning signs of a struggling labor market. Job gains reflect temporary seasonal hires and other workers separated from the broader economy while the majority of the labor force is frozen. Working Americans increasingly report that their paychecks can’t keep up with Trump’s high prices, but are not confident they’ll be able to find better opportunities. They’re instead focused on trying to keep up with the president’s price hikes.”
BACKGROUND
- The headline unemployment rate masks a weaker labor market.
- The share of unemployed workers who have been out of work for at least six months stands at 27.3%, up from 23.3% one year ago.
- The U-6 unemployment rate, which includes discouraged workers and those working part-time because they cannot find full-time jobs, stands at 7.9%, up from 7.7% a year ago, with 4.7 million workers unable to find full-time employment.
- Consumers increasingly believe jobs are difficult to find. According to the latest Consumer Confidence Survey, the share of consumers saying jobs are “hard to get” rose to 22.5% in June, up from 19.8% in May and the highest since January 2021.
- The latest Job Openings and Labor Turnover Survey (JOLTS) shows the labor market has frozen up for workers. The hiring rate held at just 3.3% in May, lower than in any month of the 2014 to 2019 expansion. The quits rate remained at 1.9%, a sign that workers are not confident they can find better opportunities.
- Job growth remains concentrated in sectors insulated from broader economic weakness.
- Health care accounted for roughly 58% of the jobs added in the past six months and 82% of the gains in June.
- Leisure and hospitality cut 61,000 jobs, despite summer tourism, the World Cup, infrastructure spending, and election staffing.
- Higher prices are continuing to outpace workers’ paychecks.
- Average hourly earnings increased 3.5% over the past year in June, while consumer prices are projected to climb at a 6% annual rate this quarter, making it harder for families to keep up with the cost of living.
- Workers are not getting more hours to offset higher prices. Average weekly hours held at 34.3 for the third straight month, so workers are not able to offset costs by working more.
- Household financial confidence weakened again in June. The Consumer Confidence Survey found that families’ views of their current financial situation deteriorated for the third consecutive month.
- Black workers continue to face higher unemployment despite Trump’s promises.
- Trump campaigned on the claim that immigrants were taking “Black jobs” and promised he would bring jobs to Black workers. Instead, the unemployment rate for Black workers stands at 6.6% in June, the highest of any racial group and well above the national rate. Trump’s policies are actively widening the economic gap for Black families.
