Trump's Second Term Sees Significant Blue-Collar Wage Growth

In the first five months of President Donald Trump’s second term, blue-collar hourly workers have seen a nearly 2 percent increase in real wage growth, marking the most significant rise under any administration since President Richard Nixon. This growth contrasts sharply with the 1.7 percent decline during the first five months of the previous administration.
Joe Lavorgna, counselor to Treasury Secretary Scott Bessent, noted that this wage growth outpaces inflation, a trend last seen during Trump’s first term. Lavorgna attributed the increase to pro-growth policies like tax reform and deregulation, emphasizing that these changes are directly benefiting everyday Americans.
Historical data reveal that only Nixon, in 1969, recorded positive blue-collar wage growth (0.8 percent) in the past six decades. Other presidents, including Reagan, Bush, Clinton, Obama, and Carter, saw negative or stagnant wage growth.
Recent Federal Reserve surveys indicate optimism among consumers, with expectations of year-ahead earnings growth rising to 2.7 percent. Meanwhile, inflation has stabilized, with the consumer price index (CPI) growing at a slower pace in May. Real average weekly earnings also rose by 0.3 percent.
Despite optimism, the impact of tariffs on imported goods remains unclear, with no significant changes in trade data yet observed. However, inflation has shown signs of improvement, aligning with the Federal Reserve’s target of 2 percent.
This wage growth underscores the administration’s efforts to support hardworking Americans and Main Street businesses, marking a notable shift in economic trends.

Published: 6/18/2025