There’s little doubt that the mainstream media will continue ignoring the phenomenal news coming from the White House. We now have yet another first from this President, the lowest unemployment rate in 49 years, or to be precise since 1969 down to an astounding 3.8%.
To add a little context to the significance of this monumental accomplishment by the Trump Administration, in 1969 the average cost of a new home was $15,550.00, with an average income of just $8,550 per year. A new car cost just a little over $3,000 and a gallon of gas around 35 cents.
American Astronaut Neil Armstrong became the first human to set foot on the Moon, uttering what was to become one of the most recognizable phrases of the 20th Centaury “That’s one small step for man, one giant leap for mankind.” And a gathering of over 400,000 young adults in upstate New York, in a little farming community called “Woodstock” forever changed the culture of America.
Fast forward back to the Trump economy and along with the remarkable drop in unemployment, and we see that the U.S. economy added 223,000 new jobs in May, about 13,000 additional jobs than the predicted 190,000 forecasted by economists.
Those numbers get even better when broken down into performance by specific industries, for example, manufacturing (which Obama predicted was dead), added 18,000 new jobs, construction grew by approximately 25,000 new position, and President Trump’s promise of restoring the mining industry grew by 6,000 new jobs, along with the service industry adding an astounding 171,000 employees, with an increase in retail of over 31,000 new additions.
Michael Feroli, Chief U.S. Economist at JPMorgan Chase & Co. in New York, acknowledged the Trump economy stating, “Demand for labor remains pretty vigorous, there isn’t a whole lot to dislike in this report,” other than this pace of hiring “isn’t sustainable. Job growth is running in excess of the sustainable pace of the demographically-determined supply of labor.”
“This report, in and of itself, definitely strengthens the case for four hikes by the Fed this year,” Feroli said. “The question is, will policymakers have the confidence that global developments won’t adversely affect U.S. growth?”
The President tweeted about an hour before the release of the “Jobs Report” his continued optimism with the economy posting; “looking forward to seeing” the figures, spurring market speculation that the report would be upbeat, and it was. In addition to payrolls topping economists’ forecasts, the unemployment rate had been projected to remain at 3.9%, while wage gains exceeded estimates for 2.6%.”
However while the overall economy continues to grow at a record pace, there’s one area that needs to be watched carefully, the elusive “participation rate” the number of working-age individuals who’ve dropped out of the labor force within the last decade, which decreased a bit from 62.8% down to 62.7% the prior month.
Those figures are important because it measures the wider issue of employment-population ratio and the overall health of our labor-market which actually rose to 60.4% from 60.3%. Although the increases are small, the indication is that working-age adults between 25 to 54 years, fell to 81.8% from 82%, that trend needs to be reversed.