The numbers are in for the month of April, and it is good news for the Trump administration.
The NY Times reports job growth recovered in April 2017 from the weak reports published in March. Furthermore, an additional 211,000 jobs flooded the market, which rose the three-month average to 174,000.
The unemployment rate is now at 4.4%, which is down from the 4.5% in March. That rate is the lowest unemployment has been in the United States in over a decade.
Hourly Wages Increase, Too
While the number of jobs flooding the market is impressive enough, it was also found that the average hourly wage rose 0.3% from the month before and 2.5% from the previous year.
Furthermore, the wider unemployment rate dropped from 8.9% to 8.6%. This proves that the labor market in the United States is promising. However, it also means that the Federal Reserve is likely to keep increasing rates to keep up — and keep money flowing.
The Federal Reserve delayed the 2016 interest rates in hopes that the U-6 rate would decrease. Now that the rate has decreased, the Federal Reserve is likely to take advantage.
The report is a promising snapshot of the American job market. The United States job market continues to expand, even after the 79 straight months of employment gains, reports the Washington Post. This is an indication that the damage from the recession is slowly starting to recede.
What Industries Received the Biggest Growth?
Jobs were added in mining and manufacturing, and these areas have been closely watched due to the Trump administration’s promises that they will increase employment in these very industries. However, the majority of the job growth came from larger industries, like hospitality, education, health, business services, and leisure.
People are now actively looking for work and finding it, from what the report indicates.
Also, the measure that looks at individuals who have given up looking for a job is decreasing, which means people are active in the job market and succeeding. The steady increase in job creation offers American workers regular paychecks and the option for income once again.
The Issue of Buying versus Building Skills Continues
One reason for the slow growth is that employers must decide if they want to buy the skills of an experienced worker or build those skills. Both cost the firm, but the company must decide what is feasible financially overall.
Also, the pressure on wages indicates that more companies are buying skills instead of building them — because it naturally costs more to hire someone with the skills already in place.
The momentum in the job market is still impressive, and experts agree that it is likely to keep moving upward — despite the March report.
Where Do Trump’s Plans Fit into This?
President Trump made a promise that he would work to increase the number of jobs in the United States. So far, his plan is working.
Also, Trump threatened companies with pay enormous tariffs if they hire from overseas or move operations overseas. This has seemed to deter such companies from doing so. While nothing official is in place, more United States companies are likely to add jobs to the market.
Donald Trump also planned to increase wages for American workers, but not necessarily increase the minimum wage. Trump’s goal is to boost the economy from within, which allows companies greater options to expand hiring practices and salaries of existing employees.