SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
bureau of labor statistics
More Signs of Distress in Trump Economy as Inflation, Jobless Claims Rise
"The middle-class squeeze from tariffs is here," observed one economist.
Sep 11, 2025
New economic data released on Thursday revealed fresh signs of stress for the US economy and working families.
A new Consumer Price Index report from the Bureau of Labor Statistics (BLS) found that overall inflation rose by 2.9% year-over-year in August, while core inflation—a measure that excludes commodities such as food and energy—rose 3.1%, the highest reading recorded since this past January.
Both of these numbers were in line with economists' consensus estimates, although they still showed inflation trending in the wrong direction during a time when the US labor market is also showing signs of weakness.
Looking deeper into the report reveals that the cost of groceries continues to be a major pain point for US consumers, as food prices jumped by 0.6% on the month and 2.7% year-over-year.
The report comes days after US President Donald Trump said in a radio interview, "We have no inflation. Prices are down on just about everything."
New York Times economics reporter Ben Casselman said that the spike in food prices was notable because it came after a long period in which food inflation had been coming down.
"Grocery prices are once again rising relatively rapidly," he observed in a social media post. "Food inflation had eased significantly, and had been running well below overall prices, but that's no longer true."
Heather Long, the chief economist at Navy Federal Credit Union, singled out some particularly important household staples in the report that she argued were very likely being impacted by President Donald Trump's tariffs.
Among other things, Long said that coffee was now 21% more expensive than it was a year ago, while living room and dining room furniture saw a 10% year-over-year increase, and the price of toilet paper rose by an annualized 5%.
"The middle-class squeeze from tariffs is here," she said. "Inflation hit 2.9% in August, the highest since January and up from 2.3% in April. It's troubling that so many basic necessities are rising in price again: Food, gas, clothing, and shelter all had big cost jumps in August. And this is only the beginning."
Mike Konczal, senior director of policy and research at the Economic Security Project and a former member of President Joe Biden's National Economic Council, said that the new report shows "inflation is broadening" given that the "percent of items that had at least a 3% annualized price increase over the last month" increased to nearly 60%, which is the highest percentage seen in years.
The inflation report was not the only troubling economic indicator, however.
The BLS also revealed that jobless claims in the US jumped to 263,000 last week, which was significantly higher than the 235,000 claims expected by economists. Joe Weisenthal, the co-host of the Bloomberg "Odd Lots" podcast, noted that this was the highest total for weekly jobless claims in nearly four years.
Long also flagged the worrying jobless claims number and predicted that it was just the start of a further downturn in the US economy.
"'Cost cutting' is back among CEOs and that is corporate speak for more layoffs," she said. "It's going to be a rough few months ahead as the tariffs impacts work their way through the economy. Americans will experience higher prices and (likely) more layoffs."
Keep ReadingShow Less
'Devastating' New Jobs Report Shows Labor Market 'Cracking' Under Trump
"The theory of Trumponomics is failing," said one economist.
Sep 05, 2025
A federal jobs report released on Friday showed the US economy added a mere 22,000 jobs in August in yet another signal of weakness in the US labor market.
Economists had projected the economy would produce 75,000 jobs on the month, which means that the Bureau of Labor Statistics (BLS) numbers released on Friday were well below the consensus estimate.
What's more, the total number of jobs created in July and June were once again revised downward, and the economy as a whole has added an average of fewer than 30,000 jobs over the last three months.
Heather Long, the chief economist at Navy Federal Credit Union, put the bad jobs report in stark terms.
"The labor market is going from frozen to cracking," she said, and then pointed to net job losses in industries including mining, construction, and manufacturing that show significant stress in the blue-collar economy. In fact, the majority of job growth came from the healthcare industry over the last month.
"The US job market is almost entirely dependent on healthcare," she observed. "That's not healthy for the economy."
Justin Wolfers, an economist at the University of Michigan, also said that the new numbers showed a continued deterioration in both the US labor market and the economy as a whole.
"I'm worried," he said. "The economy was in a good place in late 2024. That's no longer true. And the trajectory is, at a minimum, concerning. That's millions of people's lives, and millions of stories of pain."
Wolfers also zeroed in on the fact that manufacturing employment has been contracting for several months, despite US President Donald Trump's pledges to lead a manufacturing revitalization.
"But the Administration has made dramatic policy shift to boost manufacturing, and it just ain't working," he said. "Manufacturing employment fell [by 12,000 jobs], and is down [78,000 jobs] over the year."
Former BLS commissioner Erika McEntarfer, whom Trump fired last month after he baselessly accused her of concocting negative job numbers to harm him politically, argued on Bluesky that the new report's downward revisions of previous monthly estimates are indicative of a labor market that is very quickly cooling.
"The larger-than-usual downward revision last month was in large part driven by a negative skew in the job growth distribution among late reporting firms," she said. "That's unusual, but it's happened before when the pace of job growth slows rapidly. This print is more evidence that was the case."
Mike Konczal, senior director of policy and research at the Economic Security Project and former member of President Joe Biden's National Economic Council, argued the new jobs report demonstrates that "the theory of Trumponomics is failing."
"The first theory of Trumponomics was that tariffs would build up manufacturing work and federal workforce cuts would free up workers for them," he explained. "That's failed. Manufacturing lost jobs almost as fast as the federal workforce (-12 vs. -15K)."
Konczal then showed how Trump's tariffs have hurt his stated goal of bringing back well-paying jobs for blue-collar men, as industries that produce such jobs have also been harmed by his tariffs on foreign goods and materials.
He also pointed out that Trump advisers claimed that mass deportations of undocumented immigrants would create new job openings that native-born workers would rush in to fill.
"But, you guessed it, that's also failing," he said. "Amidst the broader weakening, the native-born unemployment rate is at the highest levels since the pandemic."
Elise Gould, the director of health policy research at the Economic Policy Institute, similarly noted that "there have... been sustained losses over recent months in manufacturing, construction, and mining," in recent months, which she said was "an indication that Trump's blue-collar renaissance is clearly not happening."
Alex Jacquez, chief of policy and advocacy at the progressive advocacy organization Groundwork Collaborative, called the jobs report "devastating," while laying the blame at the feet of Trump.
"Trump's promises to working families have fallen flat," he said. "The unemployment rate is the highest in nearly four years, the economy has lost nearly 40,000 manufacturing jobs this year alone, and millions of workers are unable to find full-time employment. Families are getting fewer chances to secure the American dream in Trump's economy."
Rep. Brendan Boyle (D-Pa.) reacted to the jobs report by issuing a scathing rebuke to Trump and his management of the economy.
"Donald Trump inherited an economy built on years of steady job growth," he said. "In just seven months, he's managed to screw it up—just like he's screwed up everything else in his life. Now, working families are getting squeezed from every direction: higher prices, Republicans' Big Ugly Law ripping health care away from millions, and a job market that's slowing down."
Keep ReadingShow Less
More Dismal Labor Data for Trump Economy Ahead of Critical Jobs Report
"This is the direct result of policies that only work for billionaires and corporations while leaving working families in the dust," said Rep. Pramila Jayapal.
Sep 04, 2025
Multiple economic indicators are pointing to a worsening labor market ahead of a critical jobs report due to be released on Friday.
As reported by Bloomberg on Thursday, outplacement firm Challenger, Gray & Christmas calculated that American companies announced plans to add just under 1,500 jobs last month, which is the lowest total of announced job additions for any month going all the way back to 2009, when the United States was in the depth of the Great Recession.
What's more, the firm found that announced job cuts last month totaled nearly 86,000, which was the largest August total since 2020, when the United States was in the throes of the global Covid-19 pandemic.
Data from processing firm ADP, meanwhile, projected that the economy only added 54,000 jobs last month, which was below economists' consensus forecast of 75,000 jobs added. Nela Richardson, ADP's chief economist, said in a statement that the labor market has been "whipsawed by uncertainty" caused in part of US President Donald Trump's tariffs, as well as disruption caused by the spread of artificial intelligence.
ADP's survey has traditionally been seen as less reliable than the monthly survey from the Bureau of Labor Statistics (BLS), although that might change after Trump fired former Commissioner Erika McEntarfer, whom he accused of delivering negative numbers to hurt him politically, without providing any evidence.
However, ADP isn't alone in predicting weaker-than-expected job growth. Economist Bill McBride noted in a post on Bluesky that economists at investment bank Goldman Sachs are estimating the economy created 60,000 jobs last month, or 15,000 fewer than economists' consensus forecast. Goldman also projected that "the unemployment rate edged up to 4.3% on a rounded basis" last month.
Weekly jobless claims numbers released Thursday also pointed to a weakening labor market, as new claims last week totaled 237,000, above economists' consensus estimate of 231,000, and the highest weekly total since late June.
Rep. Pramila Jayapal (D-Wash.) pointed to the weak labor market indicators in a social media post and blasted Trump's management of the American economy.
"More bad jobs numbers from Trump's economy," she said. "This is the direct result of policies that only work for billionaires and corporations while leaving working families in the dust."
Keep ReadingShow Less
Most Popular