Manufacturing Malaise: U.S. Job Market's Stagnation Under Trump

U.S. manufacturing jobs have been on a decline despite President Trump's tariffs aiming to boost blue-collar employment. The unemployment rate slightly dropped to 4.4% in December 2025, but overall job growth remains weak. Manufacturing employment has significantly fallen, with healthcare being the only sector adding jobs.

In December, U.S. manufacturing jobs persisted in a downward trend initiated in spring, following President Trump's imposition of tariffs meant to invigorate the blue-collar job market. Although the tariffs reshaped global trade and increased tariff revenue, the anticipated job boom remains elusive, adding to public discontent over economic policies.

Data shows the unemployment rate in December stood at 4.4% but with slower hiring trends. Richmond Fed President Tom Barkin highlighted prevailing uncertainty and productivity issues as factors, with businesses outside AI and healthcare largely refraining from hiring.

Manufacturing job losses continued, contradicting the promise of Trump's initiative. While healthcare consistently adds jobs, other sectors flounder under policy-induced pressures, with manufacturing employment lower than during much of Trump's first term, reflecting the challenges in reshaping labor market dynamics.

(With inputs from agencies.)