The Department of Labor reported on August 1 that the U.S. unemployment rate ticked up slightly in July to 4.2%. Employers added just 73,000 jobs — well below the 110,000 economists had projected.
Democrats pounced immediately.
This isn’t economic chaos. It’s called a comeback.
Senate Minority Leader Chuck Schumer (D-N.Y.) claimed the report showed Americans are “paying the price” for “Donald Trump’s destructive trade war.” He called the data an illustration of “economic chaos.”
California Gov. Gavin Newsom (D) — already positioning himself for a 2028 presidential run — declared that Trump is “crashing our economy” and insisted, “We haven’t seen conditions like these since 2020.”
Sen. Chris Murphy (D) of Connecticut said the economy was “chaotic and full of corruption.” He later wrote on X: “Companies don’t want to create jobs in Trump’s chaos economy with weakening rule of law and rampant corruption.”
But the reality is far less dramatic than the rhetoric.
Numbers in context
Yes, the July jobs report was underwhelming. But it was far from catastrophic.
The 4.2% unemployment rate in July 2025 is the same as it was in July 2024 — and in March, April, May, August, and November of last year. The rate has held steady for months. In what way is that “crashing our economy”? That’s called consistency.
By contrast, unemployment rose significantly during President Biden’s final year in office. In July 2023, the rate was 3.5%. A year later, just before Biden dropped out of the 2024 race, it had climbed to 4.2%.
The fact is, Trump didn’t inherit a strong economy. He got Biden’s inflation, stagnation, and policy uncertainty. So what we’re seeing now is more of a course correction, not a crash.
Signs of progress
According to the Bureau of Labor Statistics, full-time employment has grown by 1.1 million over the past 12 months. Layoffs in July were down 15% year over year.
Gross domestic product also rebounded. The Commerce Department reports that U.S. economic output rose 3% in the second quarter of 2025, reversing a 0.5% contraction in the first.
None of this suggests economic free fall. It suggests recovery.
Meanwhile, the Trump administration has brokered major trade agreements with key global players and secured historic investment deals — moves that will pay off in the years ahead.
Japan pledged to invest $550 billion in U.S. industries, and Saudi Arabia agreed to $600 billion in new investments. In May, the United Arab Emirates agreed to more than $200 billion in commercial deals, on top of a $1.4 trillion commitment earlier this year to back emerging technologies.
Domestic investment is ramping up
American companies are also stepping up in response to Trump’s pro-business regulatory agenda.
Apple this week reached an agreement with the White House to commit another $100 million to domestic manufacturing. This follows the tech giant’s announcement in February of plans to spend more than $500 billion in the U.S. over four years, focusing on operations in Arizona, California, Iowa, Michigan, Nevada, and North Carolina.
IBM pledged $150 billion over five years.
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Photo by Win McNamee/Getty Images
Eli Lilly in February committed $27 billion for new domestic manufacturing, including four new plants. That initiative alone will create more than 3,000 permanent jobs and 10,000 construction jobs.
These investments are not instant, but they are real — and they will reshape America’s economy.
The real panic is political
The Democrats’ sudden alarm over a flat unemployment rate reveals more about their political fears than economic facts. A strengthening Trump economy threatens their narrative — and their electoral strategy.
They’re hoping manufactured panic can drown out progress. But Americans can see what’s really happening.
The July jobs report may have missed expectations, but the broader trend is unmistakable. Trump is rebuilding what Biden’s policies eroded. Jobs are returning. Investment is growing. Stability is taking root.
This isn’t economic chaos. It’s called a comeback.
Opinion & analysis, Opinion, Economy, Trump economy, Economic recovery, Donald trump, Apple, Ibm, Eli lilly, Unemployment, Joe biden, Chuck schumer, Economic chaos, Gavin newsom, Chris murphy, Recession, Expansion, Manufacturing, Tariffs, Trade, Bureau of labor statistics
