1 week ago
Bessent Defends Weaker US Jobs Market Amid Deportations
The United States lost 23,000 jobs in July instead of gaining many jobs as expected.
Scott Bessent said fewer immigrants and deportations have made the workforce smaller.
He argued that a smaller workforce means the country does not need to add as many jobs.
Critics said this makes a weaker job market sound like good news.
Government and leisure jobs fell the most, although private companies added some jobs.
Healthcare, social assistance and construction were among the areas that grew.
The unemployment rate fell slightly, but partly because fewer people were working or looking for work.
Studies cited in the articles found that removing immigrant workers has not clearly created more jobs for Americans born in the United States.
Some economists warned that deportations could eventually reduce jobs for both immigrant and US-born workers.
The US economy lost 23,000 jobs in July, while analysts had expected about 80,000 new jobs.
Treasury Secretary Scott Bessent said reduced immigration and deportations mean the economy needs fewer new jobs.
Government employment fell by about 53,000 jobs, while leisure and hospitality lost roughly 40,000 positions.
Private-sector employment rose by about 30,000 jobs, with healthcare, social assistance and construction adding workers.
Economists cited studies finding little evidence that deporting immigrant workers creates more jobs for US-born workers.
- Who
- US Treasury Secretary Scott Bessent, the Trump administration, US workers and immigrant workers.
- What
- The US economy lost 23,000 jobs in July as Bessent defended a lower job-creation requirement amid reduced immigration and deportations.
- Where
- The United States.
- When
- The comments were made last week, shortly after the July jobs report; the article also cites 2025 deportation figures.
- Why
- Bessent said a smaller workforce means fewer new jobs are needed, while critics and economists questioned whether deportations create opportunities for US-born workers.
Administration’s View
Critics and Economists’ View
How many jobs are needed
Administration’s View
Scott Bessent said fewer immigrants and deportations have reduced the workforce, so the economy does not need to create as many jobs.
Critics and Economists’ View
Critics argue that treating fewer available workers as a benefit masks weakness in the labor market and reduces economic opportunities.
Effect on US-born workers
Administration’s View
Bessent said the jobs being created are going to Americans, and the administration has argued that immigrant workers previously received much of the net job growth.
Critics and Economists’ View
Studies cited by the National Bureau of Economic Research found that increased deportations did not produce more job offers or significantly higher wages for US-born workers.
Economic consequences of deportations
Administration’s View
The administration presents lower immigration and deportations as reducing competition for jobs and aligning employment with a smaller workforce.
Critics and Economists’ View
Research groups including the Brookings Institution, the American Enterprise Institute and the Economic Policy Institute warned that losing immigrant workers could reduce overall employment, including among US-born workers.
Key facts
- July job change
- The US economy lost 23,000 jobs.
- Expected result
- Wall Street had expected about 80,000 new jobs.
- Unemployment rate
- The rate fell slightly to 4.1%.
- Wage growth
- Average hourly earnings rose 3.2% year over year, the slowest increase since May 2021.
- Government employment
- Government jobs fell by about 53,000 in July.
- Private employment
- Private-sector employment increased by about 30,000 jobs.
- Reported deportations
- Border czar Tom Homan said the administration deported about 579,000 people in 2025.
Quotes
Scott Bessent
US Treasury Secretary discussing employment and immigration policy
“The jobs that we’re seeing are going to Americans.”
financialexpress.com
“we don’t need to produce as many jobs.”
financialexpress.com
Sources
Related news
US Employers Cut 23,000 Jobs as Iran War Pressures Economy
Trump Faces Economic Pressure as July Jobs Report Disappoints
US Jobs Shock: Employers Cut 23,000 Jobs in July
US hiring stalls: 23,000 jobs lost as wage growth slows
US loses 23,000 jobs as labour market slowdown deepens
US employers unexpectedly shed jobs as unemployment rate falls
US H-1B Wage Proposal Could Reshape Opportunities For Indian Professionals
Warsh Weighs Rate Cut as Inflation Keeps Pressure High
US Jobs Expected to Rebound as Rate Hike Debate Intensifies
Gold Prices Fall After Warsh Signals Possible Rate Hikes
