Commerce Secretary Howard Lutnick pushed back Wednesday against claims that President Donald Trump’s tariff policies were responsible for the shock drop in private payrolls last month.
An ADP report showed a 32,000-job decline in November, driven by a steep 120,000-job loss among small businesses. Lutnick instead blamed the 43-day government shutdown and ongoing mass deportations, arguing both temporarily disrupted hiring and reduced available labor.
He said small firms tied to federal contracts paused projects during the shutdown, while deportations naturally reduced payroll counts.
EISEN: Today we learned that the private sector is losing jobs and small business is getting hit really hard, and one of the reasons the ADP cites is tariffs. Do you worry about the economic fallout as tariffs really take hold?
— Aaron Rupar (@atrupar) December 3, 2025
LUTNICK: No no -- it's not tariffs. The Democrat… pic.twitter.com/P7kXRouKoQ
Lutnick insisted the decline was temporary and predicted a strong rebound in 2026, with GDP growth topping 4%.
Economists, however, warn that Trump’s tariff strategy could lead to broader job losses, citing rising uncertainty and softer consumer demand.
ADP’s chief economist Nela Richardson said employers are navigating “an uncertain macroeconomic environment,” with hiring softening across multiple sectors.
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TIPP Staff
TIPP Staff
