The growth dividend for workers
The growth dividend for workers
Do not you think that tax reform and deregulation are important for workers? Consider the evidence from the gangsters jobs report on Friday in October that showed the tangible dividend for workers of faster economic growth as a result of better economic policy: more jobs to choose from and better wages to start.
That's the essence of the news that the wonderful machine called the US economy created 250,000 new jobs last month, including 246,000 in private industry. Average hourly wages rose again and are now 3.1% higher than the previous year, the fastest increase in a decade. (See the nearby graph). This is the growth dividend that Republicans promised if the dead weight of Barack Obama's policies could be removed from the backs of American companies and the workforce.
The economy has added 218,000 jobs on average in the last three months, compared to 210,000 in the last year, as the unemployment rate remained stable at 3.7%. That's a remarkably strong job growth for an expansion that is nine years old, according to what some economists say is full employment.
Apparently, thousands of Americans have been waiting for the right job, or a better paid one, because the civilian labor force grew by 711,000 in October and four-fifths of them found work. Employment growth was particularly strong in leisure and hospitality (42,000), medical care (35,600), manufacturing (32,000) and transportation and storage (24,800).
Hurricane Florence, which affected the Carolinas in September, caused some noise in the data. But the big labor gains in October compensated for the payroll's timid growth in September. Labor force participation increased 0.2 percentage points last month to 62.9%, which is at the highest end of its range in recent years.
More auspicious, the labor participation rate for people of working age (from 25 to 54 years old) has increased 0.7 percentage points to 82.3% and for adolescents it has increased to 35.5% from 34.7% in the last year. This growth in the workforce has been offset by a decrease in participants from 20 to 24 years old, perhaps because more students rely on loans and grants to pay for college.
WSJ
Labor force participation for those who do not have a high school diploma has also increased to 47.7% from 46.2% in the last year, while employers continue to exclude less skilled workers. Unemployment among teenagers has fallen to 11.9% from 13.7% since October 2017. So much for growth that benefits only the rich.
Some say that the 3.1% increase in the average hourly wage is not so good because it is measured in a bad month the previous year. Again, wage growth has averaged 3.4% in the last three months and 3.3% in the last six months, which would fit with the fastest growth of GDP and the fastest increase in productivity in the last two quarters.
It is also good news that average hourly wages for production-level workers have increased by 3.9% and 4.5% for manufacturing employees in the last three months. The Labor Department's compensation survey this week showed that wages and salaries in the last year have been growing more rapidly for those in less-qualified fields, such as leisure and food service (3.8%) and sales and transportation (3.7 %). Over time, greater business investment will lead to higher worker productivity, which will be shown in higher wages.
The robust jobs report should offset some of the pessimism that followed last month's GDP report that showed 3.5% growth in the third quarter, but a disappointing 0.8% increase in business investment. Further on, these data could be revised, and solid employment growth in manufacturing -32,000 in October versus 51,000 throughout the third quarter-suggests that companies expect faster sales in durable goods and others.
One obstacle to growth has been the uncertainty caused by President Trump's trade policies. Tariffs on aluminum and steel, as well as a lot of Chinese products, are causing companies to rework supply chains and increase prices. It is worth noting that employment in primary and manufactured metals decreased in October. Some manufacturers have reported that the production of shifts abroad does not meet the rates.
Another obstacle has been transport bottlenecks, which have increased freight costs and delayed shipments. More truck manufacturing due to the strong growth of employment in transportation equipment could break the jam. Another major constraint to growth could soon be the shortage of workers, since the Labor Department reported 7.1 million vacancies in August.
All this shows that the policies of the offer help working Americans much more than the schemes of redistribution of income and subsidies favored by the Liberal Democrats and the "reforms" of the Republican Party. The growth policies of the Republican Party rescued an economy that was rapidly weakening. Growth and prosperity are what really is on the ballot on Tuesday, not the rhetoric of Donald Trump.
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SOURCE LINK ERESVIRAL.COM https://www.beviral.online
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