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Trump’s Losing Streak Continues as Jobs Report Shows Weak 2025 Labor Market
The latest jobs report shows the United States added 50,000 jobs in December 2025, and prior months revised down by a combined 76,000 jobs. The unemployment rate remains elevated at 4.4% and is near its highest levels of the past four years. The December report caps a year of sluggish job growth, with the fewest number of jobs added outside of a recession since 2003. Hiring slowed sharply over the course of 2025 as Trump’s erratic economic policies froze the labor market.
Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez released the following statement:
“December’s job report confirms that Trump’s reckless trade policies and lifeless economy are costing Americans dearly. Working families face sluggish wage growth, fewer job opportunities, and never-ending price hikes on groceries, household essentials, and utilities. 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.”
Job growth in 2025 fell far behind last year’s pace. Total job growth in 2025 was just 584,000, compared to 2 million jobs added in 2024 — a 71% slowdown.
Job gains remain narrowly concentrated in a small number of sectors. In December, job gains were concentrated in education and health services. Retail trade lost 25,000 jobs this holiday season, as budgets continue to be squeezed. The U.S. is shedding blue-collar jobs for the first time since the pandemic, with roughly 60,000 job losses in manufacturing, transportation and warehousing, and mining in 2025 while construction jobs stall out.
Long-term unemployment remains elevated. The number of people unemployed for six months or more remains at 1.9 million, increasing by roughly 400,000 compared to the year before. This points to rising financial strain for job seekers and growing unease among workers about job stability.
Official payroll statistics may overstate the number of jobs the economy is creating. Federal Reserve Chair Jerome Powell warned in December that headline job gains may be overstated by as many as 60,000 jobs per month. This is because the Bureau of Labor Statistics has to estimate job gains and losses at new and closing businesses that are difficult to survey directly. The lackluster jobs reports throughout 2025 may paint an overly rosy picture of the labor market.
New hiring has ground to a halt. The latest Job Openings and Labor Turnover Survey data show that job openings fell to about 7.1 million in November from nearly 7.5 million in October, while the hiring rate dropped to 3.2 percent, one of the lowest levels since April 2020, when the pandemic-induced recession was underway. According to data from Challenger, Gray & Christmas, U.S. employers sharply pulled back on hiring plans in 2025. Announced hires fell to about 508,000, down 34 percent from nearly 770,000 in 2024, the lowest annual total since 2010, signaling much weaker employer confidence in expanding their workforce.
The Groundwork Collaborative is dedicated to advancing a coherent and persuasive progressive economic worldview and narrative capable of delivering meaningful opportunity and prosperity for everyone. Our work is driven by a core guiding principle: We are the economy. Groundwork Collaborative envisions an economic system that produces strong, broadly shared prosperity and power for all people, not just a wealthy few.
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Minnesota Officials Say They 'Will Not Be Intimidated' by Trump DOJ Subpoenas
"This Department of Justice investigation, sparked by calls for accountability in the face of violence, chaos, and the killing of Renee Good, does not seek justice," said Gov. Tim Walz.
Jan 20, 2026
The US Department of Justice on Tuesday subpoenaed top Minnesota officials, including Democratic Gov. Tim Walz, as part of the DOJ's investigation into alleged conspiracy to impede the thousands of federal immigration agents sent to the Twin Cities by President Donald Trump—a probe Walz has condemned as part of a broader trend of the administration "weaponizing the justice system."
Walz—who ran for vice president in 2024—was similarly critical of the grand jury subpoenas, which were also served to state Attorney General Keith Ellison, Minneapolis Mayor Jacob Frey, Saint Paul Mayor Kaohly Her, Hennepin County Attorney Mary Moriarty, and Ramsey County Attorney John Choi.
"Mr. President, Minnesota invites you to see our values in action," Walz began a lengthy statement shared on social media. "But let me be absolutely clear: The state of Minnesota will not be drawn into political theater. This Department of Justice investigation, sparked by calls for accountability in the face of violence, chaos, and the killing of Renee Good, does not seek justice."
"It is a partisan distraction," Walz declared, detailing how the flood of immigration agents is negatively impacting communities and arguing that the Trump administration should focus on "restoring trust, accountability, and real law and order, not political retaliation."
After US Immigration and Customs Enforcement's Jonathan Ross fatally shot Good earlier this month, Trump and others in his administration called the deceased 37-year-old mother of three a "domestic terrorist" and claimed the ICE officer was acting in self-defense, a narrative betrayed by numerous videos, eyewitness accounts, and detailed analyses of the shooting.
As protesters continued to fill Minnesota's streets, Ellison and the Twin Cities sued the US Department of Homeland Security—which includes Customs and Border Protection (CBP) and ICE—in hopes of ending what the attorney general called a "federal invasion." The ACLU quickly followed with a class action lawsuit aimed at ending DHS agents' unlawful stops and arrests.
In a Tuesday statement about the subpoena, Ellison noted the suit he recently filed on behalf of the state:
Less than two weeks ago, federal agents shot and killed a Minnesotan in broad daylight. Now, instead of seriously investigating the killing of Renee Good, Trump is weaponizing the justice system against any leader who dares stand up to him.
Today, my office has received a criminal grand jury subpoena from the Department of Justice. It is a subpoena for records and documents related to my office's work with respect to federal immigration enforcement, not for me personally. Everything about this is highly irregular, especially the fact that this comes shortly after my office sued the Trump administration to challenge their illegal actions within Minnesota.
Let's be clear about why this is happening: Donald Trump is coming after the people of Minnesota, and I'm standing in his way. I will not be intimidated, and I will not stop working to protect Minnesotans from Trump's campaign of retaliation and revenge."
Frey—who told ICE to "get the fuck out of Minneapolis" after Ross killed Good—said Tuesday that "when the federal government weaponizes its power to try to intimidate local leaders for doing their jobs, every American should be concerned."
"We shouldn't have to live in a country where people fear that federal law enforcement will be used to play politics or crack down on local voices they disagree with," he continued. "In Minneapolis, we won't be afraid. We know the difference between right and wrong, and, as mayor, I'll continue doing the job I was elected to do: keeping our community safe and standing up for our values."
News of the subpoenas came as Greg Bovino, commander at large for CBP, and Marcos Charles, executive associate director of ICE, defended federal agents' operations during a Tuesday afternoon press conference, with the former claiming that "what we do is legal, ethical, and moral."
Sharing a video of Bovino's remarks on social media, journalist Aaron Rupar simply said, "Bovino lies shamelessly."
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Danish Pension Fund to Divest Its Holding in US Treasuries After Greenland Threats
An investor at Deutsche Bank said the US reliance on foreign debt is a “key weakness” that could be used as leverage against Trump’s aggression.
Jan 20, 2026
A Danish pension fund is selling off its US treasuries in the wake of President Donald Trump's repeated threats to annex its sovereign territory, Greenland.
The fund, known as AkademikerPension, said on Tuesday that it was selling off assets worth $100 million by the end of this month.
Its investment director, Anders Schelde, insisted that the decision was due to "poor US government finances," and had nothing to do with Trump's bellicose threats in recent weeks, which have led several European nations to move troops to the island and conduct military exercises in preparation for a US invasion.
But, he said, Trump's threats "didn't make it more difficult to take the decision."
The US president said over the weekend that he would institute tariffs on several European nations if the US did not acquire Greenland by February 1. He has previously said he would not rule out using military force to conquer the island if diplomatic means failed, and when asked about it again on Monday, replied "No comment."
Greenland's prime minister, Jens-Frederik Nielsen, responded on Monday that it would “not be pressured” and “stand firm on dialogue, on respect, and on international law.” A day later, Nielsen warned the people of Greenland to start preparing for a possible military invasion. He said, "It’s not likely there will be a military conflict, but it can’t be ruled out."
Trump's threats against Greenland have rattled markets in recent days, with CNBC reporting on Tuesday that bond prices have fallen along with stock prices and the value of the US dollar, as investors sell American assets that have long been considered among the safest investments.
While Denmark accounts for only a sliver, Europe collectively holds about 40% of foreign US Treasury holdings, which it could use as a choke point in the event of further escalation by Trump.
"Europeans hold roughly $10 trillion in US assets: around $6 trillion in US equities and roughly $4 trillion in Treasuries and other bonds," said Ipek Ozkardeskaya, senior analyst at Swissquote. "Selling those assets would pull the rug from under US markets."
The idea of a wider European boycott of US bonds appears to have unnerved US Treasury Secretary Scott Bessent, who protested during remarks at the annual World Economic Forum summit in Davos that it "defies any logic" and urged European nations not to "listen to the media who are hysterical."
George Saravelos, head of FX research at Deutsche Bank, said if Trump is intent on shredding the long-standing US military alliance with Europe, it can return the favor by backing out of its role as America's number-one lender, which could trigger heightened inflation, dollar depreciation, and higher interest rates that make borrowing and spending more costly.
"For all its military and economic strength," Saravelos wrote, "the US has one key weakness: It relies on others to pay its bills via large external deficits."
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DOGE Employees May Have Improperly Accessed Social Security Data With Aim to 'Overturn Election Results'
The DOJ filing also appeared to corroborate claims that DOGE employees improperly tried to make "a live copy of the country’s Social Security information" on a third-party cloud platform.
Jan 20, 2026
The US Department of Justice acknowledged last week that two members of the Department of Government Efficiency may have improperly accessed Social Security data at the request of an unidentified organization whose goal is challenging US election results.
In a court filing dated January 16, the DOJ revealed that the unidentified organization last March reached out to two DOGE employees, who were working at the Social Security Administration (SSA), and requested that they "analyze state voter rolls that the advocacy group had acquired."
"The advocacy group’s stated aim was to find evidence of voter fraud and to overturn election results in certain states," the DOJ wrote. "In connection with these communications, one of the DOGE team members signed a 'Voter Data Agreement,' in his capacity as an SSA employee, with the advocacy group."
The filing said that SSA has "not yet seen evidence that SSA data were shared with the advocacy group," but that it had reviewed emails indicating that "DOGE team members could have been asked to assist the advocacy group by accessing SSA data to match to the voter rolls."
The DOJ also revealed that the SSA in December 2025 made referrals of the two DOGE employees to the US Office of Special Counsel for possible violations of the Hatch Act, which bars federal government employees from using their positions for political purposes.
Politico, which first reported on the DOJ filing, noted that the disclosure "came as part of a list of 'corrections' to testimony by top SSA officials during last year’s legal battles over DOGE’s access to Social Security data," and also included revelations that "DOGE team members shared data on unapproved 'third-party' servers and may have accessed private information that had been ruled off-limits by a court at the time."
The admission that DOGE employees shared data on a third-party server bolsters an explosive whistleblower complaint filed in August from former SSA chief data officer Charles Borges, who alleged that DOGE officials have been responsible for “serious data security lapses” that “risk the security of over 300 million Americans’ Social Security data.”
At the heart of Borges’ complaint was an effort by DOGE employees to make “a live copy of the country’s Social Security information in a cloud environment” that “apparently lacks any security oversight from SSA or tracking to determine who is accessing or has accessed the copy of this data.”
Should hackers gain access to this copy of Social Security data, the Borges complaint warned, it could result in identity theft on an unprecedented scale and lead to the loss of crucial food and healthcare benefits for millions of Americans. In a worst-case scenario, the complaint said, the government may also have to give every American a new Social Security number “at great cost.”
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