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Trump-Era Job Market Shows Strain as Layoffs Hit Highest Level Since 2020

Donald Trump
(Chip Somodevilla/Getty Images)

As a result of the fact that the economy created just 50,000 jobs in December, the employment report that was presented today exhibits a weakening of the job market under Donald Trump. Except for recessions, the average number of new jobs added each month in 2025 was 49,000, making it the weakest annual employment growth since 2003.

In November, the manufacturing sector had a loss of 8,000 jobs, marking the eighth consecutive month of employment losses. This brings the total number of manufacturing job losses throughout Trump’s administration to 63,000. The percentage of people actively participating in the workforce has been falling.

This week, the Challenger report for December showed that in 2025, firms in the United States disclosed a total of 1,206,374 job cutbacks. This figure represents the largest level of job cuts since the year 2020, and it is the ninth-highest yearly total since 1989. Employers made public their intention to lay off 259,948 workers during the fourth quarter, marking the largest figure for the fourth quarter since 2008.

Workers in the United States are anticipating slower pay growth, a larger danger of unemployment, and an increased possibility of losing their jobs, according to new statistics. This anxiety is growing as a result of the Trump administration’s influence on the labor market. Concurrently, the level of trust that people have in their ability to obtain new employment has reached an all-time low.

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Kendall Witmer, the Director of the Democratic National Committee’s Rapid Response, issued the following statement in response:

A mere eleven months after Donald Trump took office, the labor market has been thrown into disarray. The number of people losing their jobs is soaring, the rate of hiring has slowed down, and the unemployment rate is still high. Additionally, working families are being squeezed as prices continue to rise. And what steps is Trump taking to address the issue? As the leader of a foreign nation, he is responsible for the financial support of the taxpayers. Trump will always prioritize the interests of Americans.

The data for this month included some discouraging job adjustments. In October, the number of jobs that were added to payrolls was revised down by 68,000, going from -105,000 to -173,000. In November, the number of jobs that were added was revised down by 8,000, going from 64,000 to 56,000.

Not only did the manufacturing sector experience a loss of employment, but the construction industry also had a loss of 11,000 jobs, and the retail trade sector experienced a loss of 25,000 jobs during this month. Furthermore, the three-month average of nonfarm payroll growth in December was minus 22,000.

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