The U.S economy is going great and is stronger than it has ever been. There are more jobs than suitable candidates to full them. This is in addition to the increased salaries and record breaking performances of the stock market each month. The latest evidence of a booming U.S economy is the 228,000 jobs added in November. What does this addition of jobs mean for the U.S economy. Let’s find out!
As revealed by the monthly Bureau of Labor Statistics (BLS) jobs report, more than 220,000 jobs were added to the U.S. economy in November. However, the rate of unemployment did not change from the previous month and remained constant at 4.1%. According to William J. Wiatrowski—the Acting Commissioner of BLS, the average monthly employment growth in 2017 was a little over 173,000. Statistics revealed by the bureau showed unemployment at over 6.5 million—with about 1.5 million being considered long-term unemployed. This included people without a job for twenty-seven weeks or longer.
The Bureau of Labor Statistics further revealed the unemployment rate for teenagers which had increased from the previous month and was 15.9%. The unemployment rate for other worker groups changed little from the previous month. There was an increase in wages as well. According to BLS, there was a 5% increase in private nonfarm payrolls average hourly earnings.
Which Industries Benefited from the November Job Gains?
Many industries benefited from the addition of jobs to the U.S. economy in November. More than forty thousand jobs were added to health care. But, not many people were surprised by this as health care performed well and remained steady even during the time of the recession. The confidence of the employers remains unscathed despite the doubts over Trump’s health care plan.
The USD is subsiding and this helped the U.S. manufacturing industry to gain over thirty thousand jobs in November. Exports benefit from a decrease in the value of the U.S. dollar. The sector that benefited the most was durable goods gained twenty thousand jobs in November. Just over eighteen thousand jobs were added to the temporary help services. When business starts to pick up, companies often add temporary jobs but they are reluctant to make permanent recruitments.
Another industry that experienced an addition of jobs was the construction industry where twenty-four thousand jobs were added. This indicates that the housing market in the U.S. is doing well right now and the real estate market is likely to remain steady for the foreseeable future. The retail industry also experienced an influx of jobs—with more than eighteen thousand jobs being added to it in November. This was largely due to the record breaking sales made on Black Friday and increased consumer spending during the holidays. The wholesale sector also benefited with an addition of thirty-four thousand jobs.
In addition to the above, the other sectors that benefited from the addition of jobs in November included the leisure and hospitality which gained fourteen thousand jobs. However, as the sectors suffered a lo due to the hurricanes, most of the new recruits were hourly employees. Hourly employees are paid only when they work and absence from work means no pay. This is considered by the BLS as a loss of job. However, all returns to work are considered as jobs gains in the monthly report. The average addition of jobs in this sector is twenty to thirty thousand jobs a month.
An important and useful thing to do here is considering the number of manufacturing jobs added or lost each month. This is a major economic indicator. As soon as they have orders, factories are likely to add workers. Generally, this happens months or even years before the shipment of orders. For this reason, manufacturing is a more accurate indicator than service employment.
While it did gain as many new recruits as the aforementioned- industries, the financial sector did experience an addition of eight thousand jobs. As long as the federal reserve continues to push up the interest rates, banks will continue hiring new people. Since it gives them the opportunity to charge more for loans, lenders can leverage the higher rates to increase profitability. The job gains were limited to the industries or private sector. The government also experienced job gains with seven thousand jobs being added to it. This came as a surprise to many as President Trump has revealed many times his intentions to streamline the federal government.
The increase in the oil prices helped the mining industry to gain seven thousand jobs. Since oil prices are expected are increase in the future, more jobs are likely to be added in the industry in December and beyond.
Is the Addition of 228,000 Good News for the U.S. Economy?
The addition of 228,000 in November is good news not just for the U.S economy, but also for the Trump administration. One of the promises President Trump made during his election campaign was reviving the U.S. economy. The addition of jobs in November is the perfect platform for Mr. Trump to do that. While the Trump administration has little to do with the recent increase in jobs and salaries, people may be willing to give them the credit for the low unemployment rate and increase in wages.
Regardless of who the credit for it goes to, the U.S. economy is performing better than it has in over a decade and there have been gains in income and employment. The Trump administration should do everything it can to seize the opportunity and help the U.S. economy to return to its glory days.
by Bobby J Davidson
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