U.S. job growth drops from a monthly average of 170,000 to 75,000, with tariff policies cited as a major factor.

According to a report by Fox News, the latest analysis from the Federal Reserve Bank of Kansas City indicates that the tariff policies implemented by the current administration may be a significant factor leading to a substantial reduction in the monthly growth of new jobs in the country's economy.

The report points out that since the implementation of the tariff increase policy, the pace of U.S. job growth has significantly slowed in 2025. Specific data show that the monthly increase in U.S. employment dropped sharply from 170,000 in 2024 to just 75,000 from January to August 2025. This trend has drawn close attention from Federal Reserve policymakers and was a key factor driving the Fed's decisions to cut interest rates during the September, October, and December 2025 policy meetings.

Economists at the Kansas City Fed noted that, in theory, tariffs have both stimulating and suppressing effects on labor demand in the economy. However, the implementation of this tariff increase policy coincided with multiple factors impacting the labor market, such as the rise of artificial intelligence, an aging population, and a decline in immigration, ultimately suppressing job growth. The report concludes that "at least so far, U.S. businesses have reduced new job creation due to the impact of tariff policies, an effect similar to that of the 2018 tariff policies on employment."

Additionally, economists found that job growth in almost all U.S. industries in 2025 was lower than the average levels of 2022–2023. This phenomenon reflects both the strong post-pandemic economic recovery in the previous two years and the recent weakening of economic growth momentum. At the same time, industries with greater exposure to tariffs experienced more pronounced declines in job growth, which economists attribute to the direct impact of tariff policies.

However, economists also emphasized that while tariffs likely suppressed job growth, the specific impact remains highly uncertain, and the possibility that tariffs had no direct effect on job growth cannot be entirely ruled out.