Posted on 05/07/2018 8:20:47 AM PDT by SeekAndFind
You have to go all the way back to December 2000 to find the last time the unemployment rate was as low as April's 3.9%. But hold the standing ovation. The labor market isn't as bright, or as tight, as it might seem.
The Bureau of Labor Statistics found that the economy added 164,000 jobs in April, and the unemployment level dropped to 3.9%. It was 4.8% when President Trump took office.
Since Trump took office, the economy has added a total of 2.7 million jobs, and since his tax cuts took effect we've seen an average 200,000 new jobs each month. Initial jobless claims are at decades long lows as well.
That's unquestionably good news.
The report also finds, however, that wages rose slightly less than expected in April — with hourly earnings climbing at a 2.6% annualized rate.
That's led some economists to start "scratching their heads," as one report put it, over why wages aren't climbing faster in what appears to be an extremely tight labor market.
"It really defies the law of supply and demand," Amy Glaser, senior vice president at Adecco Staffing, told CNBC.
But look at the rest of the jobs report — as well as historical jobs data — and the mystery pretty much disappears. The job market isn't nearly as tight as it seems based only on the official unemployment number.
Remember, the unemployment rate comes from a separate survey than the one used to count jobs created. The former is based on a monthly survey of 60,000 households by the Census Bureau. The latter by a survey of about 149,000 businesses and government agencies by the Bureau of Labor Statistics.
(Excerpt) Read more at investors.com ...
The low labor participation rate coupled with cuts in Food stamps suggests a larger than previously understood underground cash economy. This will be with us for a while but will recede to normal levels as we kick out lawless illegal aliens.
Wages are always the lagging indicator. You have to have months of tight labor market before business finally pulls the trigger on wage hikes. Business HATES to raise wages so they will off all sort of non wage benefits and perks before they will start going to wage hikes.
Sure. Under bammy it was cause for jubliant celebrations. Under Trump, the “economists” are desperate to find ways to show that it doesn’t mean anything.
“wages rose slightly less than expected “ That means their predictions were wrong. Reality overrules wishes, so shut up.
“I would not include Investor Business Daily as among those in the leftist media.”
I’ve found IBD is pretty much a RINO/GOPe/Bushite outfit, and in this particular article they’re parroting the latest get-trump attack the Dems sent out to the leftist fake stream media, an attack that’s already been posted here several times in the last few days in other leftist fake stream media outfits.
Their articles demonstrate the same level of rabid economic ignorance that "main stream" media outlets demonstrates. This artile is a prime example of their high school level understanding of both business and economics. If they had even a basic understanding of business and economics they would understand why wages haven't started going up yet.
Buffet was spewing inflation porn late last week.
RE: I’ve found IBD is pretty much a RINO/GOPe/Bushite outfit, and in this particular article they’re parroting the latest get-trump attack the Dems sent out to the leftist fake stream media, an attack that’s already been posted here several times in the last few days in other leftist fake stream media outfits.
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Could you at least tell us exactly what is wrong with this article instead of attacking the paper?
Exactly what in this article do you disagree with and why?
RE: No this is a Fake news desperation to find some excuse to deny the good news.
I don’t think they are denying the good news. They are just putting out the standard caveat behind the good news, which they have been doing since long before Trump or Obama were elected. They are equal opportunity pessimists ( for want of a better word ).
I can tell you as owner of an industrial temp service that the floor of the labor market is moving up considerably quicker. The wage to get Ed off the couch has risen $1.50 in the last year.
There are 100,000’s of open jobs in the US - especially in Transportation and Warehousing. Atlanta, Columbus, OH, Allentown, PA to mention a few locations, cannot open more warehouses and truck docks because they cannot find workers. The jobs creation number is misleading, these jobs have been open since the Fall of 2017.
You can be 100% certain that when wages do, in due time, begin to rise noticeably, the media WILL NOT say, “hey, isn’t that wonderful, Trump did a great job!”.
No, they will instantly begin obsessing over inflation, whether real or imaginary.
We will quickly be told far more suffer from alleged inflation than benefit from higher wages.
Sad.
Ask any business owner and they will tell you labor is in short supply.
Not just labor, not just bodies, but people you would actually want to hire is even worse.
“Exactly what in this article do you disagree with and why?”
i explained that in my original post ...
Nah....lots of boomers are slowing down or retiring....
Wonder if that includes anchor baby mommas?
Not really. He didn't help but the participation rate peaked in 2000 and has dropped pretty steadily since then.
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