The job market is showing signs of weakness as Trump’s tariffs take effect
The job market weakened sharply during the late spring and early summer as President Trump’s tariffs began to take effect.
U.S. employers added just 73,000 jobs in July, according to a report Friday from the Labor Department, while job gains for May and June were largely erased. The unemployment rate inched up to 4.2%.
Health care was one of the few sectors with solid job growth last month. The federal government shed 12,000 jobs in July and has lost some 84,000 workers since the beginning of the year. Tens of thousands of additional federal workers have taken buyouts but are still counted as employed through the end of September.
Tariff uncertainty hits manufacturing
Factories shed 11,000 jobs in July. Domestic manufacturers are supposed to be the beneficiaries of the president’s trade policies. But factory managers complain that uncertainty over import taxes has depressed orders and other activity. The federal government has been charging a 10% tax on nearly everything the U.S. imports since April, and higher tariffs are set to take effect on many goods next week.
“These tariff wars are beginning to wear us out,” one anonymous factory manager said in a survey released Friday by the Institute for Supply Management. “There is zero clarity about the future, and it’s been a difficult few months trying to figure out where everything is going to land and the impact on our business. So far, tremendous and unexpected costs have been incurred.”
The unemployment rate rose in July even as nearly 40,000 people dropped out of the workforce. The share of adults who are working or looking for work has fallen by half a percent in the last year.
The weakness in the job market is likely to amplify calls for the Federal Reserve to lower interest rates. The central bank held rates steady earlier this week, out of concern that rising tariffs would put more upward pressure on prices.
Despite the slowdown in hiring, wages continue to climb. Average wages in July were up 3.9% from a year ago, which is likely more than enough to outpace inflation.
How systemic failures turn state mental hospitals into prisons
The share of people with severe mental illness in state psychiatric hospitals accused of serious crimes has risen steeply. The shift has all but halted the possibility of care before a catastrophic crisis.
The DOGE mindset is still central to the Trump administration’s agenda as 2025 ends
The Department of Government Efficiency effort was one of the most consequential and controversial – if not entirely successful – changes the Trump administration made in 2025.
Can Americans learn to love tiny, cheap kei cars?
President Trump recently embraced kei cars, tiny vehicles that are popular in Asia but hard to get in the U.S. Kei car enthusiasts are delighted — but doubt whether much will change.
Here are some of the NPR stories that had a big impact in 2025
A sampling of the stories NPR staff believe made some of the deepest ripples this year — reminders of what rigorous, compassionate journalism can do, and why the work remains as urgent as ever.
How President Trump reshaped capitalism in 2025
His policies are picking winners and losers — and blurring the lines between business and government.
A prickly Ralph Fiennes uplifts a town through music during WWI in ‘The Choral’
A northern English town loses its best choral singers to fighting in World War I but finds new hope in a time of loss through music in Nicholas Hytner's new film "The Choral," featuring Ralph Fiennes.
