Washington, D.C. — New analysis from the Center for American Progress finds that even though January job growth came in above expectations, blue-collar workers have still faced an employment slowdown this past year rarely seen outside of recessions. Under the surface of the headline numbers are large downward revisions to 2025 job growth and continued weakness in industries that have long supported working-class families.
“While the top-line job number looked solid in January, the details tell a very different story for blue-collar Americans,” said Sara Estep, CAP economist and co-author of the analysis. “Industries that have long provided stable, middle-class jobs are losing ground as workers without four-year degrees are being left behind.”
Key findings from CAP’s analysis include:
- Downward revisions reveal a weaker 2025 job market. Although the economy added 130,000 jobs in January, new revisions show that job growth in 2025 was far weaker than previously reported, with average monthly gains of only 15,000 jobs. An overwhelming 93 percent of last year’s job gains occurred before April 2025, underscoring how much the labor market cooled in the months that followed.
- Blue-collar job growth turned negative. From February 2025 to January 2026, blue-collar industries—including manufacturing, construction, transportation and warehousing, utilities, and mining and logging—collectively lost 166,000 jobs.
- Policy instability is weighing on key industries. Ongoing tariff uncertainty and severe immigration restrictions have strained industries such as construction and manufacturing, where employers rely on a stable supply of skilled labor. At the same time, wage growth for noncollege workers has slowed relative to that of college-educated workers, undercutting promises that these policies would boost prospects for the working class.
- The working class captured only a small share of recent job growth. Workers without a four-year degree accounted for just 24 percent of total job growth over the past year, despite making up a majority of the labor force. Meanwhile, workers with bachelor’s degrees or higher made up 76 percent of job gains, further widening employment disparities by education.
- Wage inequality between education groups is widening again. After a brief period in which wage growth was stronger for workers without college degrees, recent trends have reversed. The gap in wage growth between college-educated and noncollege workers has widened to levels not seen since the aftermath of the global financial crisis.
Read the analysis: “Working-Class People Struggle To Find Opportunities in Trump’s Economy” by Sara Estep and Kennedy Andara.
For more information or to speak with an expert, contact Christian Unkenholz at [email protected].