This is the Trump effect, with United States adding over 222,000 new jobs in June, far exceeding expectations, as the POTUS continues to deliver on his campaign promises. Following the great jobs numbers, the US unemployment rate stayed at 4.3% according to an official gov. report on Friday.
The US job market growth is mostly due to nonfarm payrolls, which jumped last month, exceeding expectations with more than 25%. Wage growth was not so great though, with the average hourly earnings growing by 2.5% on an annualized basis. These figures are illustrating that the real economy is not doing so bad after all, with the only disappointment being the relatively slow wage growth,which doesn’t show signs of improving in the near future. The jump in June’s payrolls follows a relatively disappointing May, that saw a mere 152,000 new jobs added to the US economy. April was way better, with 207,000 new jobs, with employment gains averaging 180,000 on a monthly basis since the start of the current year.
The biggest jobs contributor was the healthcare industry, providing 37,000 new jobs, followed by business and professional services with 35,000. Social assistance added 23,000 jobs in June, while Wall Street related jobs jumped by 17,000. One of President Trump’s administration focal points, mining respectively, saw 8,000 new jobs in June alone.
Currently speaking, the number of Americans which are not in the labor force dropped a bit,to 94,813,000, which is quite a lot by any metrics. However, the US now has a record 153,168,000 employed and we’re only 6 months into Donald Trump’s presidency. The June unemployment numbers are at historic lows, standing at 4.3%. The POTUS tweeted on July 3:
“Really great numbers on jobs & the economy! Things are starting to kick in now, and we have just begun! Don’t like steel & aluminum dumping!”
It’s worth mentioning that the US has created 1000 more government jobs than manufacturing jobs so far in 2017. However, government jobs have been on a freeze since November. Due to this freeze recently being lifted, critical jobs (law enforcement, border patrol, DEA, FBI, etc.) are being filled that have been vacant since November.
Truth be told, unless the government shrinks in size, government employment will not shrink in numbers. I’m waiting for Trump to say “A ten percent reduction in force across the board in every federal department” and “Term limits for every person in Congress.” The growth of government and the wealth accumulation in D.C. is an obscenity. The government and those who work for it-creating nothing other than torment through rules and regulations-should not prosper on the backs of hard working Americans.
More government jobs is a bad thing, not a good thing. Government doesn’t contribute to GDP, and it’s the GDP that is the measuring stick of a healthy economy. The growth in government jobs tells me that they’ve got lots of money, which means the American people are being overtaxed at the Federal, State, and/or Local levels. The madness has to stop. Government needs to shrink. Pretty soon, it will run out of other people’s money.
IMAGE CREDITS: GAGE SKIDMORE / FLICKR.