The media certainly hates any good news while Trump is President. They went full force in trying to make the latest jobs report sound like bad news. There were two numbers they harped the most. The first is the number of new jobs. It fell below expectations for the first time this year, so they jumped on that. Economists predicted around 190,000 new jobs for July, but the report only had 157,000. We’ll break that number down in a minute, but apparently a 157,000 new jobs in a hot economy is a bad thing.
The bigger number the media criticized is wage growth. It held steady at 2.7 percent. They claim that this is a low, stagnant number that is behind inflation. They said that the slow job gains and bad wage improvements were because of the trade war with China. It’s killing exports and manufacturing, and things are going to get worse really fast. The economy is failing! The sky is falling!
The Real Numbers
These are all bold-faced lies. The jobs gains were at 157,000, but considering that unemployment fell to 3.9 percent, that low jobs number is mostly a product of people running out of workers to hire. More importantly, the jobs gains included 19,000 construction and 37,000 manufacturing jobs. These are industries that are supposed to be the most sensitive to trade wars, and they’re carrying job growth.
Manufacturing jobs are also the ones the left told us would never return and only shrank during Obama’s time. As soon as he left, poof! The jobs are magically returning, pushing wage growth and preventing what otherwise would be a stagnant hiring quarter.
It’s also important to note that the biggest thing that killed job growth was losses in retail. Retail notoriously struggles in the middle of summer, and it usually bounces back in the fall. If we see that trend hold, then jobs are only going to continue to impress.
Most importantly, these numbers are continuing to grow in the face of a saturated labor market. It was a few months ago that we set a record by having more jobs available than people looking for work. We’ve added hundreds of thousands of jobs since. These are very good trends.
Comparing to the Past
The best way to really understand this report is to look at recent history and build context. Let’s start with wage growth. For a full 10 years before the recession, wage growth was huge. But, even at its worst, it never fell to negative, and it never fell behind the pace of inflation. If Obama had literally signed no bills and gave no executive orders, wage growth would have stayed positive and ahead of inflation. On the whole, average wage growth was barely above two percent. Even in his best years, he couldn’t eclipse 2.5 percent.
The number for July was 2.7. And, that is a number that held steady. In fact, all of 2018 as enjoyed 2.7-percent wage growth or better. This means that Trump has accelerated earnings since Obama left, and as things continue, that number will incrementally improve over time.
Most importantly, long-term unemployment is finally falling. Obama’s unemployment numbers looked better than they were because people just gave up on looking for work. That trend has also reduced. More people are getting back into the job hunt every month, and they’re largely finding work. The current, super-low unemployment is a far more accurate measure today than it was in the eight or so years prior.
In all, the economy is extremely strong. The so-called trade war has had no negative impacts. In the meantime, Europe, Mexico and a number of other countries are practically begging Trump to renegotiate their trade deals. As great as our economy is now, it’s only getting started. That’s the good news the media won’t dare report, and it’s living proof that America is great again and getting better every day.
~ Freedom News Report