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Economy
Weak US Jobs Report Shows 'Bleak Economic Reality' for Workers Under Trump
There has been "almost no hiring since April," observed one economist.
Jan 09, 2026
The US labor market appears to be running on fumes under President Donald Trump, as the latest jobs report revealed that the American economy added just 50,000 jobs in December, below economists' consensus estimate of 55,000 jobs.
The report, released on Friday by the Bureau of Labor Statistics (BLS), also found that the US economy as a whole created just 584,000 jobs in 2025, which is less than a third of the 2 million jobs created in 2024 during the last year of former President Joe Biden's term.
The 2025 figure also marked the lowest number of annual jobs created since 2020, when the economy was shut down due to the Covid-19 pandemic.
Fox Business anchor Cheryl Casone couldn't put a happy spin on the jobs report after its release, as she noted that the gains of just 37,000 private-sector jobs on the month were "much weaker than expected."
"Private sector payrolls coming in much weaker than expected" -- Maria Bartiromo and company cope with an underwhelming December jobs report (wait for Stephen Moore's bonkers commentary at the end) pic.twitter.com/C5D8qu5h8f
— Aaron Rupar (@atrupar) January 9, 2026
Digging further into the report, Bloomberg economic analyst Joe Weisenthal observed on X that manufacturing employment has been hit particularly hard in recent months, despite Trump's vow that his tariffs would lead to a manufacturing revival in the US.
"It's not just that total manufacturing employment is shrinking," he explained. "The number of manufacturing sub-sectors that are adding jobs is rapidly shrinking. Of the 72 different types of manufacturing tracked by the BLS, just 38.2% are still adding jobs. A year ago it was 47.2%."
Heather Cox Richardson, chief economist at Navy Federal Credit Union, noted that the weakness in the labor market extends beyond the manufacturing sector, as there has been "almost no hiring outside of healthcare and hospitality" since the start of Trump's second term.
Richardson also observed that "there was almost no hiring since April" of last year, when Trump announced his "Liberation Day" tariffs that sent shockwaves through the global economy.
Economist Dean Baker, co-founder of the Center for Economic and Policy Research, zeroed in on downward revisions in prior jobs reports, reinforcing that the current labor market is anemic.
"With the revisions, the average for the last three months was a fall of 22,000 [jobs]," Baker explained. "The healthcare and social assistance sector added an average of 49,000 jobs over this period, which means that outside of healthcare the economy lost an average of 71,000 jobs in the last three months."
Alex Jacquez, chief economist at Groundwork Collaborative, said the jobs report reflected a "lifeless economy," and he pinned the blame on Trump and his trade policies as a top reason.
"Working families face sluggish wage growth, fewer job opportunities, and never-ending price hikes on groceries, household essentials, and utilities," said Jacquez. "Despite the president's endless attempts to deflect and distract from the bleak economic reality, workers and job seekers know their budgets feel tighter than ever thanks to Trump’s disastrous economic mismanagement."
Economist Elise Gould of the Economic Policy Institute took a look at the jobs numbers and concluded the US labor market now is far weaker than the one Biden left Trump nearly one year ago.
"The slowdown in job growth this year is stark compared to 2024," Gould wrote on Bluesky. "The average monthly gain was only 49,000 in 2025 compared to 168,000 in 2024. Over the last three months, average job growth was actually negative, meaning there are fewer jobs now than in September."
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Democrat-Led States Sue Trump Admin for 'Unlawful' Federal Childcare Funding Freeze
"It is especially pathetic that, once again, his administration's actions are inflicting harm on the most vulnerable among us," said California Attorney General Rob Bonta.
Jan 09, 2026
The Democratic attorneys general of California, Colorado, Illinois, Minnesota, and New York on Thursday sued President Donald Trump's administration over its "extraordinary and cruel action to immediately freeze $10 billion in federal funds that plaintiff states use to help provide services and cash assistance that allow families to access food, safe housing, and childcare."
Amid a childcare funding fraud scandal in Minnesota, the US Department of Health and Human Services (HHS) on Tuesday announced the halt on a total of around $7.35 billion for Temporary Assistance for Needy Families, $2.4 billion for the Child Care and Development Fund, and $870 million for social services grants for those five Democrat-led states.
The states' complaint, filed in the Southern District of New York, says that the department and HHS Secretary Robert F. Kennedy Jr., along with the Administration for Children and Families and its leader, Alex Adams, "have no statutory or constitutional authority to do this. Nor do they have any justification for this action beyond a desire to punish plaintiff states for their political leadership. The action is thus clearly unlawful many times over."
Minnesota Attorney General Keith Ellison argued that "withholding all funding for these vital programs will not help fight fraud as purported, and will instead shred the finances of Minnesotans already struggling to get by. Without childcare assistance, poor families will be forced to choose between parents going to work and paying their bills or staying home to provide childcare during their working hours. And it's not just families who benefit from these programs that will suffer."
"Minnesota's entire childcare system will be put under immense strain if childcare centers lose the funding provided by these programs, which could force centers to lay off staff or close their doors entirely," Ellison warned. "This extreme outcome is not just cruel, it's also another example of the Trump administration going off the rails and deciding not to follow the processes and mechanisms Congress put in place to manage federal grants in a responsible way."
"Federal laws and regulations give a roadmap for reasonable, legal ways to audit funding programs and address areas of potential noncompliance, but this 'funding freeze' takes a chainsaw to the entire system without regard to who it hurts," the former congressman stressed. "I will not allow that to happen, so today I am filing a lawsuit to halt these cuts and protect families across Minnesota from Trump's heartless attack on low-income families."
BREAKING--We have filed our 50th lawsuit against the Trump Administration, challenging its illegal and harmful actions. It addresses the withholding of funds for the neediest among us, including access to child care. I will always fight for Colorado. www.axios.com/local/denver...
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— Phil Weiser (@philweiser.bsky.social) January 9, 2026 at 11:18 AM
White House Press Secretary Karoline Leavitt confirmed Wednesday that at least one other targeted state is being investigated. She said that "the president has directed all agencies across the board to look at federal spending programs in not just Minnesota, but also in the state of California to identify fraud and to prosecute to the fullest extent of the law all those who have committed it."
After the federal suit was filed, HHS General Counsel Mike Stuart said that the department "stands by its decision to take this action to defend American taxpayers" and "it's unfortunate that these attorney generals from these Democrat-led states are less focused on reducing fraud and more focused on partisan political stunts."
Meanwhile, California Attorney General Rob Bonta—who has now taken the Trump administration to court over 50 times—declared that "the American people are sick and tired of President Trump's lawlessness, lies, and misinformation campaigns."
"It is especially pathetic that, once again, his administration's actions are inflicting harm on the most vulnerable among us," he said. "As a society, we are rightly judged by how we treat our neighbors in need, and this is a shameful way to treat them."
Illinois Attorney General Kwame Raoul similarly ripped the funding freeze as not only "unlawful" but "particularly callous," while New York's Letitia James also highlighted that "once again, the most vulnerable families in our communities are bearing the brunt of this administration’s campaign of chaos and retribution."
"After jeopardizing food assistance and healthcare, this administration is now threatening to cut off childcare and other critical programs that parents depend on to provide for their children," James continued. "As New Yorkers struggle with the rising cost of living, I will not allow this administration to play political games with the resources families need to help make ends meet.”
Colorado Attorney General Phil Weiser emphasized that "the US Constitution does not permit the president to single out states for punishment based on their exercise of core sovereign powers," and vowed that "the administration cannot punish Colorado into submission."
In addition to being blasted by leaders from the five targeted states, the funding freeze has been condemned by a growing number of elected officials across the country. US Senate Health, Education, Labor, and Pensions Committee Ranking Member Bernie Sanders (I-Vt.) noted Friday that the move could impact nearly 340,000 children.
"At a time when our childcare system is already struggling, this will be a disaster for working parents and their kids," Sanders said. "This illegal order must be rescinded."
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Hochul Backs Mamdani Childcare Expansion Plan With Two Years of State Funding
"New York just got a lot more livable for thousands of families."
Jan 08, 2026
Thousands of parents in New York City will have access to free childcare after Gov. Kathy Hochul joined forces with Mayor Zohran Mamdani on Thursday to roll out the first steps of his campaign promise to make childcare universal throughout the city.
The governor announced $1.7 billion in this year's budget that will seek to create childcare access for 100,000 more children, part of a plan to spend $4.5 billion on childcare across the state during this fiscal year.
She said she is committed to “fully fund the first two years of the city’s implementation" of Mamdani's program, which he hopes will one day provide free childcare to kids between 6 weeks and 5 years old.
According to the childcare marketplace website TrustedCare, the average cost of daycare for children in New York City ranges from $2,000 to $4,200 per month, depending on the child's age and schedule.
"This is something every family can agree on," Hochul said at a press conference Thursday at a YMCA in the Flatbush neighborhood of Brooklyn. "The cost of childcare is too damn high."
The governor and mayor will begin by increasing funding for the city's existing 3K program, created under former Mayor Bill de Blasio, which extended free pre-K, which was already available to all 4-year-olds, to 3-year-olds when spots are available. Hochul said she and Mamdani will seek to "fix" the program and make it truly universal.
After initially promising to make it available to all 3-year-olds, Mamdani's predecessor, former Mayor Eric Adams, instead slashed funding for it and other early childhood education programs, which children's advocates said drove kids out of the public school system and left many unable to find seats in nearby areas.
"We stand here today because of the young New Yorkers who were no longer willing to accept that the joy of beginning a family had to be paired with the heartbreak of moving away from a city that they have always loved," Mamdani said.
In addition to making that program universal, Hochul and Mamdani are rolling out a program offering childcare for 2-year-olds, known as "2 Care," which will first be available in "high-need areas" before being rolled out to all parents by 2029.
Mamdani has estimated that the plan to make pre-K fully universal will cost about $6 billion per year, with funding made more challenging by the fact that President Donald Trump recently cut off federal childcare subsidies to states, including $3 billion to New York, amid a manufactured panic about rampant fraud. Hochul has said the state is mulling its legal options to fight the funding freeze.
In the meantime, she plans to spend $73 million in the first year to cover the cost and creation of 2 Care, and $425 million in the second year as more children enroll.
While the source of the funds was not immediately clear, Hochul has said that money for the initial phase of the rollout will come from revenue already allocated by the legislature and not from any tax hikes in the coming year.
"We’re barely six months away from people dismissing Zohran Mamdani for running on universal childcare," said Rebecca Katz, an adviser to the new mayor's campaign. "And now here we are. Incredible. New York just got a lot more livable for thousands of families."
Some New Yorkers who supported Mamdani's campaign expressed excitement on social media about having one of their highest costs lifted.
"Universal 3K is the major reason we could afford to stay in our apartment in NYC," said Jordan Zakarin, a producer at the labor-focused media company More Perfect Union. "Making care free for 2-year-olds will be a game-changer for so many families and keep so many of them in NYC."
Andrei Berman, a father of three children, said that "this will save me 40 grand and eliminate my biggest expense a year early."
The high cost of childcare is an issue that has brought Mamdani, a self-described democratic socialist, together with the centrist Hochul. The endorsement of New York's "first mom governor," a leading Democratic power-broker in the state and the country, proved a critical stepping stone for Mamdani on his unlikely ascent to the city's highest office last year.
"To the cynics who insist that politics is too broken to deliver meaningful change, to those who think that the promises of a campaign cannot survive once confronted with the realities of government, today is your answer," Mamdani said. "This is a day that so many believed would never come, but it is a day that working people across our city have delivered through the sheer power of their hard work and their unwavering belief that a better future was within their grasp."
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Jensen Huang, World's 8th Richest Man, 'Perfectly Fine' With California Billionaire Tax
If the proposed tax is enacted, Huang would face a roughly $8 billion tax bill—a tiny fraction of his $165 billion net worth.
Jan 07, 2026
Jensen Huang, CEO of the tech behemoth Nvidia and the eighth-richest man in the world, said Tuesday that he is "perfectly fine" with a grassroots push in California to impose a one-time wealth tax on the state's billionaire residents.
In an interview with Bloomberg, Huang said that "we chose to live in Silicon Valley, and whatever taxes, I guess, they would like to apply, so be it"—a nonchalant response that diverges from the hysteria expressed by other members of his class in response to the proposed ballot initiative.
"It never crossed my mind once," Huang said of the tax proposal.
If the proposed 5% levy on billionaire wealth makes it onto the November ballot and California voters approve it, Huang would face an estimated $8 billion tax bill—a tiny slice of his $165 billion net worth. Those subject to the tax would have the option of paying the full amount owed all at once or over a period of five years.
"'Who cares' is absolutely the appropriate reaction," said Matt Bruenig, founder of the People's Policy Project, a left-wing think tank. "It means nothing to him. David Sacks types look like the biggest babies in the world."
Bruenig was referring to the White House cryptocurrency czar who left California for Texas at the end of 2025 in an apparent effort to avoid the possible billionaire tax, which would apply to anyone living in California as of January 1, 2026.
“As a response to socialism, Miami will replace NYC as the finance capital and Austin will replace SF as the tech capital,” Sacks declared in a social media post last week.
"Frontline caregivers are glad to hear that, much like the overwhelming majority of billionaires, Mr. Huang will not be uprooting his life or business to make an ideological point over a 1% per year fix to a problem that Congress created."
The proposed one-time tax on California's roughly 200 billionaires would raise an estimated $100 billion in revenue, funds that would be set aside for the state's healthcare system, food assistance, and education.
Organizers are pursuing the tax in direct response to unprecedented Medicaid cuts enacted by US President Donald Trump and the Republican-controlled Congress over the summer.
Suzanne Jimenez, chief of staff of Service Employees International Union-United Healthcare Workers West and the lead sponsor of the ballot initiative, welcomed Huang's response to the proposed tax in a statement late Tuesday.
"We agree with Jensen Huang that California has a tremendous talent pool of workers uniquely qualified to continue moving many industries forward, including within the tech sector and beyond," said Jimenez. "This initiative will ensure the $100 billion healthcare funding crisis created by [the Trump-GOP legislation] in July is fixed, so that all of those workers can access emergency rooms and vital healthcare in California."
"Frontline caregivers are glad to hear that, much like the overwhelming majority of billionaires, Mr. Huang will not be uprooting his life or business to make an ideological point over a 1% per year fix to a problem that Congress created last July—and that California will unite to solve this November," Jimenez added.
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