Economy SLUMPS Under Trump Policies!

The U.S. added just 73,000 jobs in July amid sharp revisions to May and June data, exposing the worst three‑month job growth stretch since early 2020 under Trump’s leadership and fueling economic panic nationwide.

At a Glance

July saw only 73,000 jobs added, far below expectations
May and June data were revised down by a combined 258,000 jobs
Average job growth over May–July dropped to roughly 35,000/month
Unemployment edged up to about 4.2%
Job gains were almost entirely in health care and social assistance

Slowdown Spreads and Sectors Crumble

In July, job growth cratered as nonfarm payrolls rose by merely 73,000. Simultaneously, May’s gain was revised down from around 144,000 to just 19,000, and June’s from 147,000 to about 14,000—a collective downward adjustment of 258,000 jobs. That three‑month average of 35,000 new jobs is the slowest pace outside the pandemic era.

Watch now: Worst Three Months for Jobs Growth Since Pandemic · Bloomberg Television

Almost all remaining job gains came from the health care (+55,000) and social assistance (+18,000) sectors. The federal government, manufacturing, retail, construction, and leisure sectors posted net job losses amid escalating tariffs and restrictive immigration policy.

Political Fallout and Fed Pressure

President Trump abruptly dismissed Bureau of Labor Statistics Commissioner Erika McEntarfer, claiming (without evidence) that she manipulated employment data to benefit Democrats. He stated she would be replaced with someone “more competent and qualified.” Critics warned this move risks politicizing economic data institutions.

In addition, Trump intensified pressure on Federal Reserve Chair Jerome Powell, demanding immediate interest rate cuts to counter the cooling labor market, even as market odds for a September cut leapt from below 40% to above 80%.

Economic Consequences and Outlook

Economists warn that the weak employment figures may signal the onset of a recession or stagflation, with stagnant growth and stubborn inflation converging. Wage growth remains elevated at around 3.7–3.9% year‑on‑year, while unemployment stubbornly hovers above 4%. Analysts also point to shrinking participation, rising teenage joblessness, and declining job openings as structural weaknesses.

Meanwhile, Wall Street sold off—major U.S. indices dropped 1–2%—as investors fled to bonds, sending yields lower and pushing expectations for Fed rate cuts even higher in response to the shifting labor picture.