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U.S. Tariffs and the Job Market: Sector-Level Employment Analysis and Forecasting

Summary

This project examines how major U.S. tariff episodes aligned with sector-level employment shifts using BLS, FRED, and USITC data.

I built an end-to-end labor-market analysis workflow covering 2015–2025, with forecasts through 2030, to test whether tariff-related protection supported durable job growth or instead contributed to more uneven sector outcomes beneath strong aggregate payroll numbers.

Headline Insight: Tariff-related protection appears to support select upstream industries, but broader labor-market effects remain mixed, unevenly distributed, and often delayed rather than immediate.


Why This Project Matters

This project was built around a practical question:

Do tariff-related policy shifts create durable labor-market strength, or do they redistribute job growth in ways that make the economy look stronger in aggregate than it is at the sector level?

That matters for:

  • Policy Analysis
  • Labor-Market Interpretation
  • Supply Chain Strategy
  • Business and Investment Decision-Making

Key Findings

  • Manufacturing remained structurally weak despite protection-focused policy support
  • Construction appeared to benefit more than most sectors from reshoring and domestic investment dynamics
  • Retail Trade showed weak net job growth despite broader recovery periods
  • Labor-Market Effects Often Appeared With a Lag, rather than immediately after major tariff episodes
  • Forecasts Validated Well Against Realized BLS Data, with forecast error below 4% in 4 of 5 sectors

Main Takeaway

Headline job growth can make the labor market look stronger than it really is.

This analysis suggests that tariff-related protection may support select upstream industries, but broader labor-market effects are more mixed. Employment gains appear unevenly distributed, and the impact on jobs often shows up with a lag rather than immediately after policy changes.

That means aggregate job numbers alone may not fully reflect what is happening underneath the surface.

Bottom Line: The labor market may appear stable in aggregate while sector-level conditions tell a more fragile and uneven story.


Scope of Analysis

Historical Window

2015–2025

Forecast Window

2026–2030

Sectors Analyzed

  • Manufacturing
  • Construction
  • Retail Trade
  • Transportation & Warehousing
  • Total Nonfarm Payrolls

Policy Episodes Examined

  • 2018–2019 U.S.–China Trade War
  • 2020–2021 COVID and Supply-Chain Disruption Period
  • 2025 Tariff Escalation as a Forward-Looking Scenario Context

Methodology

I built a multi-step workflow using public economic data:

  • Collected labor-market and macroeconomic data from BLS, FRED, and USITC
  • Cleaned and standardized time-series data in Python
  • Stored structured datasets in PostgreSQL
  • Used SQL for trend, sector, and lag analysis
  • Generated five-year forecasts in Prophet
  • Validated forecast outputs against realized BLS data where available
  • Designed a Tableau dashboard to make findings easier to interpret

Forecast Validation

Forecast performance was checked against realized BLS data.

Sector Forecast BLS Actual Error
Construction 8,286K 8,309K 0.3%
Manufacturing 13,194K 12,573K 5.0%*
Retail Trade 15,459K 15,427K 0.2%
Total Nonfarm 157,616K 158,466K 0.5%
Transportation & Warehousing 6,294K 6,532K 3.6%

Validation Result: Forecast error remained below 4% in 4 of 5 sectors, supporting the model’s usefulness for directional sector-level forecasting.

*Manufacturing deviation was influenced by benchmark revision effects.


Forward-Looking Insight

The labor market is not simply “strong” or “weak.”

What this project suggests is that job growth may be becoming more uneven, concentrated, and policy-sensitive.

In practical terms:

  • Some sectors benefit
  • Some sectors stagnate
  • Some sectors absorb delayed downstream pressure
  • Headline job growth can mask divergence underneath

Tableau Dashboard

The dashboard is designed to show:

  • Sector-level employment trends
  • Forecast scenarios
  • Policy-event context
  • Labor-market comparison across sectors

Live Dashboard: View on Tableau Public


Tech Stack

  • Python
  • PostgreSQL
  • SQL
  • Prophet
  • Tableau
  • BLS / FRED / USITC APIs

Limitations

This analysis does not claim that tariffs alone caused all labor-market changes.

Important limitations include:

  • Tariff episodes overlapped with other macroeconomic shocks, especially COVID and broader business-cycle effects
  • Sector-level employment data supports timing and association, not strict causal attribution
  • Forecasts assume a degree of structural continuity and may weaken under future shocks or major policy changes

About

End-to-end analysis of U.S. tariff impacts on employment (2015–2025) using BLS, FRED & USITC APIs. Prophet forecasting validated against real BLS data. Python, SQL, PostgreSQL, Tableau.

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