Analysis by expert reveals growing strain of tariffs on low-wage workers

With the Trump administration doubling down on tariffs, questions are being asked about the real-world consequences for working Americans, especially those in already fragile roles...
HR Grapevine
HR Grapevine | Executive Grapevine International Ltd
Analysis by expert reveals growing strain of tariffs on low-wage workers
Lisa Countryman-Quiroz, CEO of JVS Bay Area, on the impact of tariffs

Lisa Countryman-Quiroz, CEO of JVS Bay Area, has a front-row seat to the unfolding disruption, and she’s not holding back in her assessment of the toll these policies could take.

JVS, for those unfamiliar, is a nonprofit focused on bridging employment gaps and building career pathways for those who have traditionally been left out of the economic mainstream. With a legacy stretching back 50 years and a track record of helping over 100,000 people into better-paid roles, the organization is now raising the alarm about how macroeconomic shocks (including tariffs) are compounding challenges for the American workforce.

Inflation, layoffs and the impact of tariffs

For Countryman-Quiroz, the effect of tariffs on workers is plain to see, and stark in its implications for low-wage earners.

“Tariffs act as a regressive tax hike on working people, raising prices while also putting jobs at risk,” she says. “Many economists expect these tariffs to drive both inflation and job losses. Industries that were already experiencing layoffs or volatility are likely to be further destabilized, especially if they depend on foreign imports.

“According to the Yale Budget Lab, the average US household could lose more than $3,700 in purchasing power. Workers in low-wage or unstable employment, who are already living paycheck to paycheck, will feel this more acutely, while mid- and high-skill employees may have more flexibility to adapt or pivot.”

It’s not just a matter of price tags at the checkout. Tariffs have caused a ripple effect that not only crashed share prices but touched employment policy and business decision-making.

“When faced with sharp cost increases like tariffs, especially in an already volatile economic environment, employers often respond by cutting costs. That typically means layoffs, hiring freezes, or wage stagnation. These cost-cutting measures are compounded by broader federal actions like layoffs, deporting immigrants, and funding freezes, which inject even more uncertainty into the economy. This uncertainty drives a surge of jobseekers into an already competitive labor market, where lower earning workers are unfortunately hit harder by the impact of high costs. If tariffs persist long-term, we risk higher unemployment and a decline in access to family-sustaining jobs, widening the gap between working people and economic stability.”

Job training squeezed as demand surges

Beyond the headlines, organizations like JVS are under pressure to pick up the slack, just as funding may be drying up.

“Mass layoffs, particularly in the public sector, are creating a surge of new jobseekers. But instead of expanding our job training programs to meet this growing demand, workforce organizations like JVS are being forced to create contingency plans and scale back due to budget constraints.

“That means fewer opportunities for people to gain critical skills needed for today’s job market. This doesn’t just hurt individuals, it creates a talent gap for employers, too. Without robust training pipelines, businesses will struggle to find qualified workers. HR leaders will need to take a more active role by investing in employee upskilling and exploring external job training partnerships to bridge the gap and keep their teams future ready.”

'Building diverse, inclusive talent pipelines will be key to staying resilient' - CEO, JVS Bay Area

As for what jobseekers can do in the face of such instability, her advice is both practical and forward-looking.

“In 2025, jobseekers should seek to polish both digital and interpersonal skills to remain competitive. There’s no doubt that AI has had a significant impact in the workplace. In fact, the use of AI at work doubled in just the first six months of 2024, and job postings increasingly require technical AI skills, even in non-tech sectors.

“That being said, distinctly human capabilities are becoming more valuable than ever as AI and automation transform workplaces across industries. My organization conducted an analysis last year that found that human skills - such as communication, creativity, teamwork, and problem solving -  are in high demand from employers across a range of sectors. In a world where AI can analyze data or generate content, uniquely human skills cannot be automated and will continue to be highly sought after by employers.”

Employers must step up or risk falling behind

Countryman-Quiroz is clear that resilience doesn’t just come from individual jobseekers. Employers have a critical role to play, too.

“Employers that invest in their workforce are better equipped to weather economic shocks. Your talent is your most valuable asset, and when they’re hurting, you’re hurting. But you can build a more resilient workforce amid these shocks by investing in upskilling and training. Employers that invest in their workforce tend to see lower turnover and higher productivity, which will be crucial during these uncertain times. Forward-thinking companies will recognize that workforce development is not a cost to be cut, but a competitive advantage. Investing in your workforce is not only good for business, it gives your employees security in a really uncertain world.”

And for those at the strategy table, the message is clear -  rethink how you hire and who you hire.

“When the market changes, you want a team that can pivot with it. Building diverse, inclusive talent pipelines will be key to staying resilient during these uncertain times. That means rethinking traditional job qualifications like degree requirements, that may exclude highly capable candidates who took nontraditional career paths.

“One way to do this is for employers to partner with workforce development nonprofits like JVS. Employers often have financial resources and industry-specific knowledge, but not the capacity or expertise to build effective and inclusive training programs.

“They may also be blind to some of the systemic barriers facing jobseekers, such as inability to access housing, transportation, or childcare.

“By partnering with nonprofits that specialize in workforce training, employers can connect with highly-specialized training expertise and built-in understanding of tactics to help jobseekers overcome structural barriers.”

In other words, as tariffs and economic shocks take hold, the path forward isn’t to go backwards, it’s to invest. And for JVS, that means investing in people.

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