Mark Zandi and Warren criticize Trump as July labor data show weakening

Sen. Elizabeth Warren (D-Mass.) criticized President Donald Trump's economic record on August 18, 2026, citing a 23,000-job decline in July, the slowest wage growth in five years and shrinking inflation-adjusted paychecks. Moody's chief economist Mark Zandi separately said Trump's immigration policies were contributing to higher unemployment among native-born workers by shrinking labor supply, worsening sector-specific shortages and increasing exposure to weaker labor demand. Zandi also blamed tariffs and the war in Iran for supply-side stagflationary pressure, while saying artificial intelligence had prevented the economy from falling into "complete shambles." The headline unemployment rate fell to 4.1% in July as labor-force participation declined to 61.4%, but full-time employment fell by 106,000 to 133.55 million, its lowest level since December 2024, marking a fourth consecutive monthly decline and a total drop of 1.11 million. Rep. Jim Jordan (R-Ohio) said the economy was moving in a "pretty good direction," although high costs remained a burden. The White House has argued that Trump's policies are lifting wages in construction, manufacturing and transportation.

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