Trump Effect on the Job Market: Loss of 33,000 Jobs Raises Concerns in the Private Sector

• Trump’s policies lead to the first loss of 33,000 private-sector jobs since 2023.
• It’s a clear sign of a cooling labor market worsened by these measures.
• Official data to come will confirm whether the slowdown deepens.

In June, the US labor market set off alarm bells with the loss of 33,000 jobs in the private sector, breaking a positive streak that had lasted over a year.

The ADP report surprised analysts by contradicting expectations of growth and sparking concerns about the real impact of Trump’s policies on the economy.

Economic Context and Trump Effect on Job Market

The ADP figure was far worse than expected: analysts had projected an increase of 98,000 jobs. Instead, the first monthly job loss since March 2023 occurred. May had already signaled warning signs, with only 29,000 jobs created — the lowest figure of the year.

Analysts agree that uncertainty surrounding Trump’s policies plays a central role. More aggressive tariffs, mass deportations, federal spending cuts, and government layoffs have created an atmosphere of caution in the private sector.

According to Nela Richardson, chief economist at ADP, companies are holding back from hiring or replacing departing staff, reflecting worries about the future.

The Trump administration, in its second term, has implemented these measures aiming to redefine economic and security priorities. However, the immediate result has been a blow to business confidence and a tendency to freeze job creation.

Fewer Job Opportunities and Increased Competition

For the Hispanic community in the US, this labor market scenario means fewer job opportunities and more competition for each available position.

When businesses hesitate to invest or expand, job openings shrink. The result is greater pressure on those seeking employment or trying to improve their situation.

Moreover, federal cuts and immigration policies indirectly affect key sectors employing many Latinos, such as construction, services, and hospitality.

Less available labor and greater legal uncertainty make the hiring landscape even more complicated.

How to Protect Your Finances in the US in a Weak Job Market

• With a slowing labor market, the chances of negotiating a better salary or switching jobs diminish.
• Although wage growth has not sharply declined yet, a weak market can lead businesses to become more conservative with pay raises.

For those sending remittances or looking to save more, now is a good time to review the monthly budget. Having an emergency fund and controlling expenses becomes crucial to withstand a period of instability.

What Analysts Are Saying About Trump’s Policies

• “Job growth is becoming anemic,” said Ron Hetrick, senior labor economist at Lightcast, according to CNN. “When tariff uncertainty arrived… all those conversations (about hiring) just said: ‘Well, not now.’”
• Meanwhile, Elizabeth Renter, economist at NerdWallet, warned: “It will take months or even years before we fully see the effects of tariffs, federal cuts, and immigration policies on the labor market.”