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Trump's first five months post historic wage growth for blue-collar workers, says Treasury

However, oil prices rose 2.9% Tuesday on fears of supply disruptions from the Israel-Iran conflict.

Laborers build a home in Fairfax, VA (File).

Laborers build a home in Fairfax, VA (File).AFP

Agustina Blanco
Published by
Agustina Blanco

Workers in the United States have experienced real wage growth of nearly 2% in the first five months of President Donald Trump's second term, the largest increase recorded in the first five months of any administration in nearly 60 years, according to data from the Treasury Department.

This 1.7% increase marks a significant contrast to negative growth during the Joe Biden Administration, where inflation outpaced gains, resulting in a 1.7% drop in real wages in this sector.

The Secretary of the Treasury, Scott Bessent, highlighted in the podcast "Pod Force One" that this growth only has precedents in Trump's first term, when a 1.3% increase was recorded. Not since 1969, under Richard Nixon, had any other president achieved positive wage growth for blue-collar workers over a comparable period, according to the New York Post.

In addition, Bessent noted on his X account:

“Thanks to @POTUS’s pro-growth, America First policies, real wages for hourly workers are up nearly 2% in the first five months of @realDonaldTrump’s second term—the strongest growth in 60 years. No president has done that before—except President Trump in his first term. Hardworking Americans and Main Street businesses have never had a stronger ally in the @WhiteHouse.”

Wage drop in various administrations

  • Barack Obama (-0.3% in 2009)
  • Bill Clinton (-0.6% in 1993)
  • George W. Bush (-0.6% in 2001)
  • Ronald Reagan (-0.9% in 1981)
  • George H. W. Bush (-3% in 1989)
  • Jimmy Carter (0% in 1977)

Bessent attributed this advance to falling inflation and Trump's focus on manufacturing, as well as his policy of restricting illegal immigration, which he said puts pressure on U.S. workers' wages by saturating the labor market.

“Biden opened the border, and it was flooded,” Bessent said, underscoring the negative impact on blue-collar workers.

For its part, the White House also noted the wage increase in its X account:

“In President Trump's first five months in office, blue-collar wage growth saw its largest increase in 60 years, and we're just getting started!”

One Big Beautiful Bill

The Trump team anticipates additional momentum with the passage of the One Big Beautiful Bill, expected in July.

This legislation would eliminate federal overtime taxes for more than 80 million hourly workers in sectors such as manufacturing, construction, and emergency services, in addition to offering tax incentives for manufacturers to build factories in the U.S., which could generate up to six million jobs in these sectors.

Rise in oil prices due to tensions in the Middle East

Oil prices rose 2.9% on Tuesday to US$73.90 a barrel, the highest level since late January, on fears of supply disruptions from the conflict between Israel and Iran.

Last week, crude oil prices rose by 13%, the biggest weekly increase since October 2022, following the conflict between Israel and Iran.

This has raised the average price of gasoline in the U.S. to US$3.17 per gallon, up 5 cents from the previous week, according to reports from the American Automobile Association (AAA).
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