'Trump Is Tanking the US Economy': Dismal Report Shows 23,000 Jobs Lost, Slowing Wage Growth

Federal data released Friday shows the US economy shed 23,000 jobs last month, but one analyst said that figure was "only the beginning of the bad news" for the country's job market under the leadership of President Donald Trump.

"This is a bleak jobs report," said Heather Long, the chief economist at Navy Federal Credit Union, noting that the unemployment rate fell slightly in July—but primarily because more people left the labor force—and year-over-year hourly wage growth slowed to 3.2%, not keeping up with inflation.

Breyon Williams, the Groundwork Collaborative's top economist, said in response to the new Labor Department numbers that "regardless of having a job or not, everyone is paying high prices from Trump’s chaotic tariffs and war with Iran."

"Today’s report shows a patchwork economy that is fraying at the seams," said Williams. "Trump’s economic mismanagement has injected so much uncertainty into the economy that employers are not confident enough to add more people, but also have not initiated massive layoffs, creating a frozen job market where those with jobs are afraid to leave them and those without are stuck on the sidelines."

Rep. Pramila Jayapal (D-Wash.) wrote on social media that "Trump is tanking the US economy."

In addition to the loss of 23,000 jobs last month—far worse than forecasters' expectation of an increase of 80,000 jobs—the Bureau of Labor Statistics (BLS) revised job growth downward for both May and June. BLS said job growth in May was actually 20,000 (down from the earlier estimate of 57,000), and job growth in June was 63,000 (down from 129,000). The healthcare sector has accounted for a disproportionate share of US employment growth this year.

"This economy is running on fumes," said Angela Hanks, a former Labor Department official who now works as chief of policy programs at The Century Foundation. "However the White House tries to spin these numbers, their talking points ring hollow for people who are actually experiencing Trump’s weak economy."

White House spin efforts began almost immediately after the release of the new figures.

Kevin Hassett, director of the National Economic Council, claimed during a Fox Business appearance that the dismal job numbers were a testament to the success of Trump's mass deportation campaign, even though the largest job losses in July occurred in state and local government.

"Because we have a tight border and because we've been deporting folks who aren't citizens, then that puts downward pressure on what the sort of breakeven job number is," said Hassett.

Speaking to reporters outside the White House, Hassett also blamed the "end of the World Cup," which "meant that a lot of hospitality workers were then laid off."

"Is this the ‘Golden Age’ that Donald Trump and JD Vance keep talking about?" asked Kendall Witmer, the Democratic National Committee's rapid response director, following publication of the BLS report. "Trump’s disastrous economic agenda has caused irreparable damage to the job market, as layoffs mount and it’s nearly impossible to find a job."

"Working families are already drowning under the weight of skyrocketing costs on everyday goods like groceries, gas, and healthcare, and their paychecks aren’t keeping up," said Witmer. "Americans are barely keeping their heads above water—and Trump can’t even be bothered to care."