National Economic Council Director Kevin Hassett defended the administration’s economic performance during an interview Sunday on CNN’s “State of the Union,” pointing to high-paying industrial gains and broader indicators despite a surprise contraction in July employment figures.
The Bureau of Labor Statistics reported that the economy shed 23,000 jobs in July, defying economist projections of a 95,000-job gain. Downward revisions were also applied to previous months, eliminating 100,000 previously reported jobs across May and June.
Addressing the figures, Hassett characterized monthly labor reports as subject to significant fluctuations and data adjustments.
“I think that one of the things we’re seeing is that these jobs numbers are getting revised left and right,” Hassett said, attributing July’s decline largely to seasonal drops in public sector employment and the conclusion of the FIFA World Cup tournament affecting hospitality hiring. “You take those two out and you get back to what the consensus number was about 100,000 job creation”.
Hassett asserted that underlying fundamentals remain intact, highlighting a record 83,000 construction workers currently building manufacturing plants, as well as low unemployment insurance claims and a high volume of unfilled job openings.
CNN anchor Jake Tapper noted that net job growth during President Trump’s second term stands at roughly 548,000 to 880,000 jobs, depending on the baseline month, compared to 2 million jobs added during the final 18 months of the Biden presidency. Tapper also raised economic headwinds highlighted by analysts, including elevated gas prices tied to ongoing conflict in the Strait of Hormuz and Federal Reserve findings indicating tariff costs have passed to consumers.
Hassett countered that the current expansion is characterized by quality over sheer quantity, emphasizing gains in blue-collar compensation.
“The thing that really jumps out at us is that those are really good jobs. They’re manufacturing jobs. They’re construction jobs,” Hassett said, asserting that the average construction or manufacturing worker has seen a salary increase of $3,000 to $4,000.
On inflation, Hassett pointed to flat or negative recent prints in consumer price measures and core personal consumption expenditures. Regarding high energy costs, he cited actions such as Jones Act waivers and domestic oil production increases, noting oil prices had dropped from peak levels of over $100 per barrel to around $80.
When asked about public pressure over grocery costs—citing poll numbers showing 61 percent of Americans cutting back on food expenses—Hassett acknowledged consumer strain.
“Grocery prices are way too high,” Hassett said, pointing to residual inflation from past relief spending and elevated beef prices. However, he expressed optimism over upcoming supply chain developments, citing recent steps to reopen the border to Mexican cattle imports.
Despite public concerns over everyday costs, Hassett reiterated confidence in the broader trajectory, citing high capital investment rates, labor force stability, and expected productivity boosts from artificial intelligence deployment.
READ: James Carville Urges Caution Over Progressive Primary Wins, Calling Wave Hype Overblown
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
