Donald Trump’s claim that America’s economy is booming has been undercut by new data showing there were 258,000 fewer jobs over the past few months than initially thought, thanks in large part to the president’s chaotic trade policies.
The latest jobs report released on Friday showed a significant slowdown in job growth, with only 73,000 new jobs for July and unemployment rising to 4.2 percent.
But the biggest shock was the revised job figures for the two months prior. In a brutal reality check for Trump, there were only 14,000 new jobs in June, far less than the previously stated 147,000; while the May count fell to just 19,000, revised down from 144,000.
“This jobs report isn’t ideal – there’s no way around that,” Stephen Miran, the chairman of the president’s Council of Economic Advisers, told CNN.
Within minutes of the figures being released, Trump took to social media to lash out at Federal Reserve Chairman Jerome Powell for not cutting interest rates.
“Too Little, Too Late. Jerome “Too Late” Powell is a disaster. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!” he wrote.
But even some of the president’s aides and allies admitted the figures were linked to Trump’s policies, which had likely led companies to slow their hiring amid the uncertainty.
Heritage Foundation economics fellow Stephen Moore told Fox Business: “This disappointing number is a result of all the turmoil of tariffs and trade wars.”
“I talk to small businesses all over the country. A lot of their businesses came to a standstill, they didn’t know if they could get their parts in, they didn’t know what was going on… but my point is that turmoil is now behind us and I think business will be much more optimistic now that we have those trade deals in hand.”
The figures were released just as Trump announced new tariffs on countries around the world, escalating trade wars with some of America’s key allies.
Under the policy, assuming it sticks, the 10% universal tariff will remain, but about 40 countries with which the US runs a trade deficit will now face a 15% rate.
Some will be hit even harder, such as Canada, where tariffs will now rise to 35 percent, due to what Trump says is a lack of cooperation in tackling fentanyl.
Thursday’s report showed that there were some gains, with jobs in the health sector continuing to grow.
But the manufacturing sector lost about 11,000 jobs, and the construction sector, which is heavily dependent on migrant workers, only added 2,000.
What’s more, the revised job numbers for June have not been this sluggish since December 2020 when the U.S was still reeling from the global pandemic.
Fox Business commentator Joanie Bily, the interim chief executive of Dressed for Success Worldwide, told Fox News that the May and June revisions were “very concerning.”
“There are jobs out there… but a lot of those entry-level positions are going away,” she said. “I’m concerned about the labor market.”
Miran, however, insisted that the worst was over.
“We’ve been hearing a lot about uncertainty over the last few months, but all that is resolved now,” said the Trump aide.
“We’re created trade deals left and right that have unlocked enormous new potential for the American economy.”
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