Trump Administration Celebrates Record Blue-Collar Wage Growth in 50 Years

The Trump administration is celebrating the rapid rise in blue-collar wages in the first few months of President Donald Trump's second term, which began in January. According to administration officials, the wages of nonsupervisory and production workers have increased at an annual rate of 1.7% in the past five months. This represents the largest increase in pay for blue-collar workers under any administration since 1968 and is larger than the boost seen by such workers at the start of Trump's first term.

Treasury Secretary Scott Bessent, who was testifying before a House Financial Services Committee hearing on Capitol Hill in Washington, D.C., on May 7, 2025, stated that he was not worried about inflation from tariffs. He noted that the year-to-date gain is more than twice as large as the previous record set during Richard Nixon's election year.

Officials attribute the gain in blue-collar wages to the impact of falling inflation, which has boosted take-home pay and, in turn, their living standards. They also believe that the passage of the Republican tax cut package, referred to as the "One Big, Beautiful Bill," will help reduce inflation while speeding up wage gains like what occurred during Trump's first term.

Counselor to the Treasury Secretary Joe Lavorgna, during an appearance on Kudlow on Tuesday afternoon, pointed out that wages are rising faster than prices and asked, "Why is this happening now?" He alluded to his previous work as the director of the National Economic Council and said that they saw a historic boom in blue-collar wages during his time there.

Lavorgna added that the president's policies and the One Big, Beautiful Bill will solidify the supply-side growth initiatives and that the blue-collar boom will broaden and get even bigger. When asked about economic growth, Lavorgna noted that the Atlanta GDP was tracking a possible GDP growth rate of 3.5% in the second quarter and pointed out that import price data shows absolutely no tariff pass-through at all. In fact, prices have actually declined since the president put tariffs in place initially.

In conclusion, the Trump administration is confident that their policies and initiatives are having a positive impact on blue-collar workers and the overall economy. The administration's focus on reducing inflation and increasing take-home pay for blue-collar workers is paying off, and they are confident that this trend will continue under their leadership.