The Department of Labor Reports that America Added 2.5 Million Jobs Since Trump’s Election
America’s economy has surged since President Trump’s inauguration: GDP growth topped 3.3 percent last quarter, which is the highest since 2014. This economic growth has translated into more jobs and higher wages for American workers.
On February 2, 2018 the US Secretary of Labor Alexander Acosta issued the following statement regarding the January 2018 Employment Situation report:
Our strong economy continues to grow, as 200,000 new jobs were added in January 2018. Since Election Day 2016, American job creators have added 2,553,000 new jobs. The unemployment rate remains at a 17-year low of 4.1%. Job growth in construction was strong in January, with 36,000 new jobs created.
January saw the third consecutive monthly rise in the wage growth rate, with a 2.9% 12-month increase in average hourly earnings. December 2017 wage growth rate was revised up to 2.7%; November 2017 was 2.5%. This may be the start of a welcome trend in wage gains, and marks the highest percentage increase in average hourly earnings since 2009. Average hourly earnings data excludes bonuses.
The reaction to the President’s landmark tax reform law has been overwhelmingly positive. Job creators across the nation have announced billions of dollars in bonuses, higher wages, and new benefits for employees. Many have also announced new investments in facilities and equipment. All of this is welcome news.
Reiterating the key points: 2.5 million new jobs were added since President Trump’s election victory, the unemployment rate is the lowest it’s been in 17 years, and the rate of wage growth for workers is the highest it’s been since 2009. This is good news for America’s working class, which has suffered the ill effects of wage stagnation since the 1970s.
Also interesting is that the Department of Labor anticipates this growth will continue in light of the GOP Tax Cuts and Jobs Act—which although far from ideal, is better than nothing.
The Bureau of Economic Analysts comments on America’s recent economic boon, and attributes some of the growth to a decrease in imports—that is, import substitution. The note that President Trump’s animus towards foreign producers is helping American businesses compete, and regain lost market share—particularly in manufacturing.