Wage Growth for Blue-Collar Workers During Trump’s Term

In the first five months of President Donald Trump’s second term, blue-collar workers experienced real wage growth of nearly 2%. This marks the highest increase in about six decades. Meanwhile, recent data from the US Treasury indicates a 1.7% decline in wage growth under President Joe Biden.

Interestingly, Trump stands out as the only president since Richard Nixon in 1969 to achieve positive wage growth for blue-collar workers during the initial five months of his presidency, having recorded a 1.3% increase in his first term as well.

As inflation takes a toll amid declining revenues, Biden’s recent data shows a recovery from a 1.7% decline, hinting at changing economic conditions for this crucial segment of the workforce.

“This is the best… that we’ve seen since President Trump’s first term,” the Treasury Department pointed out. More than almost any other time in recent history, real wages for blue-collar workers have risen considerably, driven by lower inflation that has boosted take-home pay and living standards.

Scott Bescent noted that this growth is linked not just to the president’s focus on production but also efforts to address issues like illegal immigration that impact the job market. “Biden’s policies have opened the borders, which creates challenges for working Americans and puts pressure on their wages,” he stated.

Year-to-date profits for blue-collar wage growth from December 2024 to May 2025 have surpassed the Nixon administration’s 0.8% growth rate by more than double. In contrast, no other administrations have matched such gains during similar periods. For example, Barack Obama faced a 0.3% decline in real wages in 2009, while both Bill Clinton and George W. Bush each experienced drops of 0.6%. Ronald Reagan and George H. W. Bush saw declines of 0.9% and 3.0%, respectively, while Carter’s administration in 1977 reported zero growth.

Trump’s team argues that with the anticipated passage of a significant economic bill in the Senate, possibly by July, the economy will benefit from a “double whammy” of falling inflation and rising wages—situations reminiscent of his first term. This Budget Settlement Bill aims to provide specific relief to blue-collar workers, aligning with promises made during last year’s presidential election.

Additionally, the bill proposes eliminating federal income taxes on overtime for over 80 million workers in sectors like manufacturing and construction, crucial for those in those industries who often depend on overtime for income. Furthermore, tax incentives for manufacturers are expected to bolster the creation of blue-collar jobs, potentially reaching up to six million, reversing trends of offshoring seen over the past few decades.