Warren Slams Trump’s Economic Policies: July Job Losses Rise, Wage Growth Hits Five-Year Low

Senator Elizabeth Warren criticized President Trump’s economic policies, arguing that weaker job growth, slowing wage gains and rising costs are squeezing American workers.

July job losses rise, wage growth slows

On Tuesday, Warren commented on Trump’s economic policies on X, citing the latest labor market data.

“Trump’s failed economic policies are hitting American workers,” Warren said.

She added: “July: 23,000 lost jobs. Wage growth: slowest in five years.”

She further said, “After taking rising costs into account, workers’ pay is shrinking.”

Warren contrasted the data with Trump’s economic promises, saying, “Trump promised prosperity. But instead, families are squeezed.”

Trump’s failed economic policies are hitting American workers.

July: 23,000 lost jobs.

Wage growth: slowest in five years.

After taking rising costs into account, workers’ pay is shrinking.

Trump promised prosperity. But instead, families are squeezed.

— Elizabeth Warren, August 18, 2026

Different views on Trump’s economy

Earlier, Moody’s Chief Economist Mark Zandi blamed falling labor demand, Trump’s immigration policies, tariffs, and the Iran war for pressure on the U.S. economy, warning of slower growth and rising inflation.

He said artificial intelligence helped prevent the economy from slipping into “complete chaos.”

Rep. Jim Jordan said the economy has been moving in a “fairly good direction,” while acknowledging that high costs continue to weigh on middle-class and working families.

He said Republicans had delivered on failed tax cuts and were working to improve affordability.

Meanwhile, Trump warned that excessive government benefits could ultimately weaken the economy.

He argued that losing companies and their tax contributions could shrink the tax base, leading to “famine, poverty, death and destruction.”

Full-time employment continues to decline

Last week, The Kobeissi Letter said the U.S. labor market had deeper weakness beneath the surface, with full-time employment falling 106,000 in July to 133.55 million, the lowest level since December 2024.

That decline marked the fourth consecutive monthly drop, with total reductions hitting 1.11 million. Since January 2025, full-time employment has fallen by 2.35 million.

The market commentator noted that full-time employment was only 1.4% above pre-pandemic levels, while the share of full-time employment in total employment dropped to 82.4%.

“The U.S. labor market is weak beneath the surface,” The Kobeissi Letter said.

The unemployment rate fell to 4.1% in July, while the labor force participation rate also declined to 61.4%.