New Jobs Data Shows Trump Inherited Weaker Economy Than Expected
Recent labor reports and newly revised government data reveal that the U.S. job market is far softer than earlier believed, challenging both President Donald Trump and his critics. While many point to Trump’s tariffs and tough immigration policies as reasons for slowing employment growth, new evidence suggests he inherited deeper economic problems from President Joe Biden’s administration.
BLS Revisions Reveal Fewer Jobs Under Biden
The Bureau of Labor Statistics (BLS) issued updated figures this week, cutting 911,000 jobs from its previous estimates for April 2024 through March 2025. That means Biden’s economy was weaker than initially thought, with less momentum heading into Trump’s first year in office.
White House Press Secretary Karoline Leavitt said the revisions confirm that Trump was handed an economy “in much worse shape than reported.”
Economists agree the adjustment shifts the story. Deutsche Bank’s Brett Ryan explained that the data shows the U.S. has been in a “low hiring, low firing” cycle for longer than expected, rather than suddenly falling into decline under Trump.
Job Losses Continue Across Key Sectors
Despite the revisions, Trump still faces challenges. Hiring has slowed further in several industries:
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Professional and business services cut 17,000 jobs in the past month, with data now showing 158,000 fewer jobs were created under Biden than initially believed.
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Wholesale trade shrank by nearly 12,000 jobs last month and has lost workers in most months of Trump’s tenure. Biden’s reported growth in the sector was overstated by 110,000 jobs.
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Manufacturing, a cornerstone of Trump’s agenda, has been hit especially hard. After factories lost 129,000 jobs in 2023–24 under Biden, new revisions show another 95,000 jobs disappeared. Under Trump, the industry has already lost 42,000 jobs in four months, despite tariff protections.
Tariffs Add to Business Uncertainty
Trump’s historic tariffs were designed to revive domestic production, but many businesses say the policies have created more uncertainty. Rising costs and disrupted trade flows have made employers cautious about expanding or hiring, according to recent surveys.
Economists warn this could undermine Trump’s tax-cut policies. Ryan called it a “cautionary tale,” suggesting tariffs could erase potential economic benefits by discouraging growth.
A Weak Foundation and Uncertain Future
From April 2024 to March 2025, U.S. employers added an average of 146,500 jobs per month, far below earlier estimates. Final revisions are expected in February, though analysts don’t expect a dramatic improvement.
Still, the White House maintains that Trump’s policies remain the right path.
“The president is committed to his policies because his policies are working,” Leavitt said.