U.S. economy loses 23,000 jobs in July, as Trump-era economy continues to struggle

Expectations heading into this week showed projections of about 83,000 new jobs being created in the United States in July. As it turns out, according to the new report from the Bureau of Labor Statistics, the totals fell far short of those expectations. CNBC reported:

The U.S. economy saw an unexpected declined in jobs during July while the unemployment rate edged lower, the Bureau of Labor Statistics reported Friday in a snapshot that showed a slowing employment picture.

Nonfarm payrolls fell by a seasonally adjusted 23,000 for the month, compared to a downwardly revised 20,000 for June. The Dow Jones consensus forecast had been looking for a gain of 83,000.

The unemployment rate inched lower to 4.1%, which is still low by historical standards, though it’s still a little higher than it was when Donald Trump’s second term began. What’s more, it’s worth noting that the drop was itself evidence of trouble: The “improved” unemployment rate is the result of the labor force participation rate dropping, as opposed to additional hiring.

Also discouraging were the revisions for May and June, which subtracted a combined 103,000 jobs from previous estimates.

All of this comes just one week after the Commerce Department issued its latest report on U.S. economic growth, which also showed weak and disappointing growth.

Earlier this week, the incumbent Republican president said the United States currently has “the greatest economy maybe in the history of the world.”

The comments were ridiculous at the time. As the domestic economy loses jobs again, it now looks even worse.

Seven months into the year, the U.S. economy has created 426,000 jobs so far this year — a monthly average of roughly 61,000 — which is an awful total that plainly contradicts the White House’s routine happy talk about current conditions.

All told, the U.S. economy has added 542,000 jobs over Trump’s 19-month second term. Over the previous 19 months, the economy nearly 2.7 million jobs. To date, the White House hasn’t even tried to explain why the domestic job market worsened after the Republican president took office.

To contextualize the data, I put together this chart to show month-to-month totals since the 2020 election. The blue columns point to Biden’s presidency, while the red columns point to Trump’s.

This post updates our related earlier coverage.

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