Just over 100 days into Donald Trump’s presidency and America is starting to becoming great again by almost any metrics. The private sector in the US was expected to create 185,000 new jobs in April, but the real figure was 211,000 (nonfarm payrolls), bouncing back from a relatively disappointing March.
The unemployment rate is also at a 10 year low, standing at 4.4%, the lowest since May of 2007. It’s worth mentioning though that job growth was observed especially in the low paying areas, with the hospitality/leisure industries adding 55,000 jobs in April, seconded by social-assistance positions(37,000) and professional+business services (39,000). Mining also created 9000 jobs, whilst government payrolls grew by 17,000.
There are 23 metropolitan areas which boast jobless rates of under three percent, whilst 11 had rates of over ten percent. The lowest unemployment rates are found in Ames Iowa and Boulder Colorado, with 2 percent each while El Centro California has the highest unemployment rate, standing at 19.2%.
March’s figures were pretty dismal, seeing payrolls grow by only 79,000 from an estimated 98,000. This Friday was also a happy day for everybody in the stock market, as the Nasdaq and the S&P 500 composite indexes closed (again) at record-high levels, with the investors contemplating the results of the Sunday presidential election in France where Macron is widely considered to be a sure winner.
The Dow has had its quietest eight days since 1952, despite China’s massive liquidity issues, the oil prices plunging, commodities crashing, not to mention Warren Buffet dumping Big Blue.
However, considering that the number of Americans NOT in the labor force INCREASED for the second straight month to 94,375,000, compared to 94,213,000 in March, it appears that official jobs figures ignore those who are are unemployed and not receiving unemployment payments.
Following a sound logic, 153 million Americans are working and 95 million are not working, making for a 38 % unemployment rate or pretty close to it.
Obviously, that was occurring during Obama’s tenure too, this is not new.
Question: How do 153 Million working Americans support 330+ million inhabitants when wages have been stagnating for 20 years due to the influx of legal and illegal foreigners among other things like stealth inflation? Answer: welfare fueled by money creation/debt.
Bottom line: we need to add something like 180,000 to 200,000 jobs a month just to keep up with those entering the work force. The only reason the U-2 employment numbers drop is that more people fall off unemployment and give up looking for work, plus all of the baby boomers retiring. When we start to see adding 450,000 jobs a month we will have something to celebrate.