The new payroll reports finds unemployment has fallen to an incredible 3.9 percent even as economists say that the report “missed expectations.” But the fact is Trump has brought this economy roaring back from Obama’s mess.
According to CNBC:
- Total nonfarm payrolls increased by 157,000 for the month, below the 190,000 expected in a Reuters survey of economists and the lowest gain since March.
- The unemployment rate fell one-tenth of a percentage point to 3.9 percent, as expected.
Average hourly earnings increased 2.7 percent over the same period a year ago.
- Previous months’ jobs numbers were revised substantially higher.
Payroll growth turned sluggish in July after two robust months, though the unemployment rate edged lower and the overall jobs picture continued to look solid, according to Labor Department numbers released Friday.
Total nonfarm payrolls increased by 157,000 for the month, below the 190,000 expected in a Reuters survey of economists and the lowest gain since March. The unemployment rate fell one-tenth of a percentage point to 3.9 percent, as expected and is around its lowest level in nearly 50 years.
In the key wages category, average hourly earnings also met expectations, increasing 2.7 percent over the same period a year ago. The Federal Reserve is closely watching the wages component as it seeks to meet its 2 percent inflation target.
And as far as the Associated Press is concerned, Trump’s trade wars have not yet hurt the economy:
One cloud on the horizon has been the Trump administration’s trade fights with China, the European Union, Canada and Mexico. The White House has slapped tariffs on steel and aluminum and on $34 billion of imports from China, and several companies have hit U.S. imports with retaliatory duties.
Yet the trade fights didn’t appear to impact hiring last month. Manufacturers, among the most directly affected by the import taxes, added 37,000 jobs, the most in seven months.
Oil and gas drillers nearly doubled their investment in drilling rigs and other structures this spring, helping manufacturers expand. That’s likely boosted factory output of steel pipe and other drilling equipment. The new spending follows a 60 percent jump in oil prices in the past year.
So far, Trump has been the perfect steward of the economy and brought the USA roaring back after Barack Obama spent eight years trying his level best to destroy the country.
There are worries about the near future, naturally, but let’s hope Trump is smart enough to stay ahead of the potential pitfalls. So far he has been, for sure.
Follow Warner Todd Huston on Twitter @warnerthuston.