Donald Trump’s claim of delivering a strong economy to Americans is being challenged by a slowing labor market, which could affect his party’s chances in next year’s congressional elections.
Recent data from the Bureau of Labor Statistics shows U.S. employers added just 22,000 jobs in August after a weak summer, signaling that the labor market may be cooling unexpectedly.
Omair Sharif, an analyst at Inflation Insights, said trade and policy uncertainty are causing employers to pause hiring, and it is unclear when these issues might be resolved.
Democrats have seized on the labor data to argue that Trump’s economy is causing more harm than good, highlighting rising costs and uncertainty across industries.
Senator Maggie Hassan of New Hampshire stated, “Costs keep going up. Manufacturing is contracting, and businesses don’t know whether to invest or hire because of so much uncertainty.”
She added, “This is a direct result of the president’s reckless tariffs and the uncertainty that he has created,” tying the slowdown to recent policy moves.
Construction jobs are taking a big hit as tariff-related disruptions continue to affect the industry. (Megan Smith/Reuters)
Senator Ron Wyden from Oregon criticized Trump’s economic team, suggesting the president should replace Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick before the economy slides into recession.
The slowdown comes after Trump fired the commissioner of the Bureau of Labor Statistics last month and pressured the Federal Reserve to cut interest rates, while still claiming the economy remains strong.
Speaking from the Oval Office, Trump said interest rates were “too high” and defended the economic data, noting that corrections often follow initial figures.
Kevin Hassett, director of the National Economic Council, described the jobs numbers as “an anomaly” and “a little bit of a disappointment,” expecting revisions to show stronger trends in investment and output.
Despite reassurances, multiple sectors have shown weakness, particularly blue-collar industries, which were central to Trump’s promise of a new “golden age” for American manufacturing.
Goods-producing sectors lost 25,000 jobs in August, with wholesale trade shedding an additional 12,000 roles, illustrating the impact of tariffs and trade disruptions on hiring decisions.
Erica Groshen, a former BLS commissioner, said on the FT’s Swamp Notes podcast that the three-month average job growth is only 29,000, effectively near zero for an economy of the U.S.’s size. She called the data “sobering” and warned the economy is “flashing yellow.”
The report could hurt Trump politically as he has used the economy to boost his approval ratings, which remain weak, with 42.2 percent of Americans approving of his economic management and 54.1 percent disapproving.
Republicans face potential voter backlash in next year’s midterms if labor market challenges persist, particularly as inflation continues to run above the Federal Reserve’s 2 percent target.
Lanhee Chen, a senior adviser and director of domestic policy studies at Stanford University, said Trump has months to influence public perception of the economy before midterms shape voter sentiment.
Chen added, “The ability of Republicans to retain control of Congress depends in no small part on his ability to tell a positive economic story.”
Analysts do not expect sudden policy changes from the White House. Instead, the administration is likely to continue pushing the Fed and questioning discouraging economic reports.
Ylan Mui, managing director at Penta Group, noted the slowing jobs market might allow Trump to argue for lower interest rates while using revised data to challenge the BLS.
Mui said the president can frame any labor issues as reasons for more government involvement, reinforcing his narrative of economic stewardship rather than letting market trends dictate outcomes.
The August report highlights the difficulty of sustaining rapid job growth amidst trade tensions, tariffs, and policy uncertainty, particularly in industries that the administration promised to revive.
As Trump continues to assert economic strength, the persistence of low hiring and sector-specific layoffs may complicate his messaging ahead of the midterms, challenging both public confidence and Republican prospects.
