WASHINGTON, D.C.: Seven months into Donald Trump's return to the White House, the economic picture he promised to restore is looking very different. Instead of a hiring boom, the U.S. labor market is cooling rapidly, while inflation—once his top target—has begun to edge up again.
Government data on September 5 showed that employers added only 22,000 jobs in August, with unemployment rising to 4.3 percent. Factories and construction firms shed workers, while revisions revealed the economy lost 13,000 jobs in June — the first monthly decline since the COVID-19 pandemic in late 2020.
The numbers widen the gulf between Trump's campaign pledge of fast, broad-based growth and the more fragile reality taking shape. "We're going to win like you've never seen," Trump told reporters, insisting that newly built factories will eventually drive job growth. He asked Americans for patience, suggesting the turnaround could take a year.
Polls suggest patience is wearing thin. In July, just 38 percent of Americans approved of Trump's handling of the economy, down from 56 percent at the peak of his first term, according to an AP-NORC survey. Democrats argue the problem begins with Trump's policies, while the president blames the Federal Reserve for not slashing rates fast enough. Investors expect the Fed to cut rates in September, partly in response to weakening jobs data.
Senate Democratic leader Chuck Schumer said Trump's tariffs and "freewheeling" approach were "squeezing the life out of our economy," calling the August report a "blaring red light warning."
A closer look at the job market highlights the challenges. Since April, manufacturers have cut 42,000 jobs, while builders have eliminated 8,000 positions, despite Trump's promise that tariffs would bring factories "roaring back." Trump had also pledged to protect "Black jobs" through stricter immigration enforcement, but Black unemployment has risen to 7.5 percent, the highest since 2021. The logging and mining sectors, including oil and gas, have shed 12,000 jobs since January, even as Trump promoted oil as America's "liquid gold." And while he vowed to "end" inflation on "day one," consumer prices have accelerated, with electricity costs up 4.6 percent this year.
At a dinner with tech leaders including Apple, Google, and Microsoft, Trump predicted AI-driven growth would produce "jobs numbers like our country has never seen before" within a year. But critics say his mixed messages—calling jobs data both rigged and a temporary slump—are undermining confidence. "The president clearly stated that the data were not trustworthy… and if that's true, what are we being patient about?" said Michael Strain of the American Enterprise Institute.
White House economic adviser Kevin Hassett argued that growth remains intact, pointing to forecasts of three percent annualized expansion this quarter. Still, former Biden aide Daniel Hornung said the weakness across goods-producing sectors suggests tariffs are compounding existing headwinds. Even some Trump allies concede the labor market is "softening." Stephen Moore of the Heritage Foundation said tariffs and immigration crackdowns are reshaping the workforce: "The problem going forward is a shortage of workers, not a shortage of jobs."
Pollster Frank Luntz believes voters will judge Trump more on inflation and affordability than on monthly job numbers. "Everyone who wants a job has a job, for the most part," he said. The decisive moment, he added, will be Labor Day 2026.
