Unpaid forced leave and potential mass firings have emerged as pressing concerns as the U.S. government faces a shutdown beginning October 1, amid a standoff between Democrats and Republicans over funding. Reports indicate that a White House memorandum may not guarantee back pay for furloughed federal workers. President Donald Trump suggested that support for these workers may vary based on perceived merit, stating, “it depends on who we’re talking about.”
On October 6, Russell Vought, Director of the Office of Management and Budget, referenced the commencement of “reductions in force” on social media, leading to notifications being sent by various agencies. This development comes as federal workers are already facing challenges from job losses initiated during the early months of Trump’s presidency.
Analysts argue that despite Trump’s campaign rhetoric emphasizing support for workers, his policies may have negative impacts on the labor force. Critics maintain that initiatives such as tariffs, tax reforms, and immigration policies are elevating costs for workers and inhibiting wage growth.
A White House press release from Labor Day asserted improvements in blue-collar employment and wage increases. However, experts like Gbenga Ajilore from the Center on Budget and Policy Priorities suggest that declines in the federal workforce could significantly affect low- and moderate-income families relying on crucial services provided by government agencies.
The administration’s tariff policies are viewed as contributing to rising consumer costs while endangering manufacturing jobs. In addition, changes in immigration policy have reportedly exacerbated labor shortages in agriculture and other sectors by allowing lower wages for temporary workers under H-2A visas.
Antonio De Loera from the United Farm Workers emphasized that these changes could reduce wages across the agricultural sector, further straining workers financially. Generally, economic indicators suggest persistent challenges for American workers, with signs of stagnation in hiring and an increase in long-term unemployment, particularly among college graduates.
Source: https://www.theguardian.com/us-news/2025/oct/11/trump-impact-labor-force-workers