Faster economic growth, slowing employment... A quick look at Trump's second year "report card" in office 2.0.

In 2025, Trump was re-elected and entered the White House due to voter dissatisfaction with the economy under the Democratic administration. He promised to lower prices and declared to bring a "golden age" to America. How has his government performed so far? Despite experiencing some ups and downs, the US economy is expected to achieve steady growth in 2025 - economists predict that this trend will continue into 2026. Data released last week showed that the economy grew at its fastest pace in two years in the third quarter, due to the resilience of consumer and business investment. However, these overall data mask some less optimistic details. Job growth is weak and concentrated in a few industries, while high prices continue to be a concern, continuing the consumption-related challenges faced during the Biden era. The following charts show the development of the US economy in 2025: Labor Market This year has been challenging for job seekers in the US, due to factors such as tariff impacts, a reduction in foreign tourists, and the increasing prevalence of artificial intelligence in the workplace. The unemployment rate in November rose to 4.6%, which is 0.5 percentage points higher than expected for 2025, reaching the highest level since 2021. Overall recruitment has been weak, with new job openings mainly concentrated in the healthcare and social assistance sectors. Excluding this sector, employment numbers have actually decreased this year. Manufacturing has seen consecutive job cuts for seven months. The wage growth rate for workers has slowed down, with various indicators such as average hourly wages and employment cost index reaching their lowest levels since 2021. Data from the Atlanta Fed shows that from April to November, at least 13% of employees did not see any wage growth compared to the same period last year. In the weak job market, workers with a four-year college degree have been hit hard. In November, their unemployment rate was 2.9%, which is a level not seen without an economic recession. Meanwhile, a study from the Cleveland Fed shows that monthly employment rates indicate that college-educated young people no longer have the advantage in finding jobs compared to those with only a high school diploma. This year, the unemployment rate for African Americans has also significantly increased, rising from 6.2% in January to 8.3% in November, partially due to more black workers entering the labor force. Consumer Prices Inflation this year has been relatively stable. Although it remains higher than the level familiar to Americans over the past decade after a sharp drop from the peak of the pandemic, the overall inflation rate based on the Consumer Price Index was 2.7% in November, which is in line with the average level of 2025. However, this data may be affected by data interruptions caused by the government shutdown. Other indicators, such as those commonly used by the Fed, also show similar readings. Most commentators believe that soaring prices during the Biden administration were one of the reasons Trump was elected president. Now, Trump has to take responsibility for the voters' concerns about the high cost of living - this issue remains politically significant based on the non-presidential election year voting in November. One positive aspect for Trump is that his tariff policy has not led to price spikes as warned by many economists. He can also claim that gasoline prices have fallen, which has always been a hot issue for voters. However, there are signs that the continuously rising electricity bills - an issue emphasized in last month's Democratic campaign - could replace gasoline prices as a new hot topic. White House spokesperson Kush Desai said in a statement: "In the past year, inflation has cooled down, economic growth has accelerated, interest rates have fallen, and real wages have finally risen. There is still a lot of work to be done in the new year, but with President Trump's policies continuing to take effect, the American people can rest assured that the best is yet to come." Trade War The most notable economic policy shift by Trump has been towards trade protectionism. Despite the Trump administration previously canceling some tariff increases, especially targeting China, Trump raised tariffs in 2025 to the highest level in nearly a century. Trump has said that high tariffs will raise funds for the government, narrow the trade deficit that has existed in the US for decades, and stimulate domestic business investment. On one hand, import taxes are working, and by the end of 2025, monthly revenues are projected to increase by around $300 billion. On the other hand, there is still significant fluctuation, and there is no definitive conclusion at present. After Trump's election, there was one of the largest import surges in history at the beginning of the year, with US companies rushing to bring goods into the country before the new president imposed tariffs. Since then, the trade deficit has slightly decreased. Business Investment Regarding the third established target of Trump's trade war, the results so far have been mixed. According to the latest data released on December 23, fixed business investment growth in the first three quarters of 2025 has been steady. However, this expansion has been largely driven by higher spending on computer equipment and software. Looking ahead, economists expect Trump's "Great America Act" and continued investment in artificial intelligence to boost capital expenditure in 2026.