Economy adds 225K jobs in January, far beyond expectations
S E E D E D C O N T E N T
The U.S. added 225,000 jobs in January as a decline in trade tensions and mild winter weather boosted a resilient labor market, according to data released Friday by the Bureau of Labor Statistics (BLS).
The January jobs gain was far beyond the projections of economists, who expected the U.S. to add between 150,000 and 160,000 workers. The unemployment rate ticked higher to 3.6 percent as the labor force participation rate rose by 0.2 percent to 63.4.
Economists forecasted a solid month of job gains after President Trump signed a preliminary trade deal with China and a revised North American trade agreement, easing years of uncertainty and tension that roiled the global economy. A warm January also helped the construction sector add 44,000 workers, leading all industries for the month.
The U.S. also saw significant gains in the health care industry (36,000), transportation and warehousing (28,000), leisure and hospitality (36,000) and business services (21,000).
The blowout jobs report reinforced the strength and resilience of the U.S. economy amid a global slowdown, the toll of Trump's tariffs, and daunting foreign conflicts. The surprising gain also gives Trump another example to tout on the campaign trail as he seeks to clinch another presidential term with a strong economy.
Economic growth as measured by gross domestic product (GDP) expansion slowed to 2.3 percent in 2019 and is expected to slump to roughly 2 percent in 2020. While that pace is well below Trump's promised clip of at least 3 percent growth, economist expect it to sustain a growing labor market and unemployment near record lows.
Treasury Secretary Steven Mnuchin ceded in a Thursday interview that the U.S. would not reach 3-percent growth in 2020, but "we're seeing the numbers that we really want, which is very strong job growth, and also wage growth."
Even so, the report also included revisions to 2019's figures that shaved roughly 514,000 off of last year's total jobs gain. The economy also came close to breaking a record stretch of job gains in February only adding 1,000 jobs, according to revised figures.
And employment in manufacturing and mining continued to stagnate despite Trump's promises to revive those industries. The manufacturing sector lost 12,000 jobs in January, almost entirely in the auto sector, while mining employment stayed largely the same.
Wage growth also ticked higher to 3.1 percent on an annualized basis, increasing from December but below the pace economists consider necessary to keep up with rising health care, education and housing costs.
Article is LOCKED by author/seeder
From the infamous tent scene in the movie "We're the Millers":
"We're swinging!"
Wait, those numbers can't be right. I've been told by so many that the economy is slowing down under President Trump and his past good numbers are only due to the (cough cough) hard work from Obama... /s
Not long ago there was that talk of the imminent "recession." It's been another tough week for democrats!
Let us not forget - Average hourly wages up 3.1% from last year.
Good times for working Americans!
You might even say it sucks being a democrat these days!
Wouldn't that be the icing on the cake? Imagine Trump taking away the hold the democratic party has had on specific groups, who have been taken for granted for decades!
He got 8% of the black vote in 2016. After delivering prosperity for minorities, he should improve dramatically on that number. He has changed so many political norms. This would be another feather in that red cap!
MAGA!
It's incredible we are still adding jobs at this rate. Truly amazing.
It must be killing CNN to make that report.
I hate to be a bit of a bummer, but the middle class has not been improving. In fact, it slightly shrank. It hasn't even kept up with inflation rates.
And yes jobs have gone up, due to the stimulus of tax breaks that are being paid for by our government, which now has a national debt of 22 trillion and growing. Basic economics says that this will have to be paid back. Of course, this will be the next guy's problem, right?
I'll wait till you all jump on me for being truthful.
Curious as to which way the "shrinkage"
went. More people move up or more people dropped down. Any idea? After all, they don't just disappear. I'll try to find it but I think it may be an exercise in futility as I doubt there is much hard data................IMO kinda hard to pinpoint
Thoughts?
It went towards the upper class, which grew by 5% and the lower which grew by 4%.
But the actual income earned has remained stagnant by the middle class but has actually grown slightly in the upper classes.
And no it is not hard to pinpoint. It's based on the IRS.
So the middle class is smaller because more people became upper class?
How terrible!
And they became part of the lower middle class.
And neither of their actual salaries have kept up with inflation, so their actual purchasing power has gone down.
But nice to see, you are a glass half-full kind of guy.
I must run in different circles, 'cause I haven't had a client that's whined about what's going on since 2018, at all. In Fact, they're happy they have so much work, and sometimes can't keep up with it.
"stimulus of tax breaks that are being paid for by our government"
How does the "Government" pay for the tax breaks ? "Government doesn't "Earn" Money. Here I thought, being able to keep more personal money, means "Government" just get's less money from their employee's (Citizens that actually work). Are they not compensating for their lower income again ?
Yes because last year they got a little extra money out of their taxes. But the reality is consumer purchasing power has gone down. The ultimate wash. And their actual income didn't go up, they just got more back from their taxes.
When the government does not get the money they need from taxes, they take it from other places. That is why the debt keeps growing. Look up the Laffer Curve.
Taxes.....and Money from MORE work for the taking. "More Work" seems to have been left out.
" When the government does not get the money they need from taxes, they take it from other places. "
Like I noted before:
5.2 It Is ME - "Are they not compensating for their lower income again ? "
Don't be distraught though, there are up and coming Democrats running for the Presidency, that have promised to up the income of government, by taking more from their "Employee's. Is it possible Happy Government Days will be here again in November this year ?
I think you nailed it with one large exception. Unbridled elitism in that "we know what is best" for you. If they don't have the money, the "program(s)" need some tweaking. You know that old spend what you've got and not much more than you can truly afford. I have to. You have to. We all have to. But they spend on their definition is of "the good of the country" when indeed in a lot of cases, the good of the country can do without it..............at least the majority. And you have to admit, thousands of thousands of dollars spent analyzing why a dancing frog, dances. There is more spending on "studies" to justify a program and get the results one wants than is truly necessary. We have studies going on here right now to the tune of $250K to see if further public transportation is needed. While I realize that some sort of analysis needs to be done, those study figure are rather frivolous.
JMHO
The number of people who are working is not in debate here. What is, is the overall economy. Buying power and the national debt plays into that.
You obviously have no idea of what I am talking about so I got a silly comment instead. The national debt has to be paid back and at a rate that is lower than our current rate. That is a basic economic model.
The "Powers" that be, don't seem to talk with too many "Everyday" NORMAL folks, and not one damn "Regular Folk" has EVER based their buying power on "Government Debt". It's all about "What's in Your Wallet" for folks..
I don't go by what the stock market does, do you ?
I go by what I'm able to do. I can do much more than I used to be able to do. You ?
"The national debt has to be paid back and at a rate that is lower than our current rate."
AGAIN....what person do you know that has ever curbed their own spending because of "THE governments Debt" ?
Jim, I am so tired of these tag terms. I am talking economics and you are talking about elitism.
You do realize, whether or not you agree with this spending, it is but a small fraction of what is being spent on other things that is driving up the debt. It is the debt and the current interest rates that are going to kill us down the road, not to mention that we are not keeping up with the inflation rate with our salaries, hence why a tax stimulus boosts the economy. But that stimulus will have to be paid back.
It is just robbing Peter to pay Paul.
Until it has to be paid back. Then it's OUCH!
The stock market is not even part of this equation. It is just a knee jerk economic indicator.
For now you are.. you will have to pay the pipper down the road.
They don't and that is why Americans save less than most western nations. It still doesn't mean that there won't be a payback time either.
Btw, my husband and I are savers and invest in real estate. That is because we get how this goes.
When's that gonna happen ? It's been over 300 years so far, and I haven't gotten a bill yet ?
"That is because we get how this goes."
You don't think there are more of your type out there than what is actually reported ?
What do you call no real increases in actual wages, tax increases, interest reductions and economic slumps? That is how you pay.
Actually I know there are not. You seem to forget what I do for a living, and it ain't NT, LOL.
As am I. What do you call the keepers of the cash spending on whimsical shiny objects? It takes a one dollar at a time approach, much like what we do in our everyday lives, but frivolous spending is the norm............because they can. Granted, pressure MAYBE from their constituents has a little to do with it but their constituents are the first to bitch that we are spending money we don't have all the while demanding more feel good. It makes no sense to me. Wonder what that $250K could do for some homeless folks right here. There is just too much damned waste and corruption in the ranks responsible for the direction of the cash programs.
I have seen many people type about conservatives that their attitude is "I got mine, screw you". Well other than their exorbitant salaries and the fact many in GovCo go in with a modest amount of money and come out millionaires. It's support for "porkulous" pet projects that just don't benefit all. That is the only spending that should be prioritized.
Jim,
I do not deny that there is dumb spending going on. But you make it sound like it is all spent on one kind of project and it isn't. When my dad worked for Grumman, they had soldering irons that cost more than $1000, of which almost every guy had one issued to them and that was in the '60's. It still goes on today. So yes, while I do agree with you 100% that $250K could help many a soup kitchen or food for elders, that is not the way it shakes out given any party. The frivolous spending goes on.
Yet the Debt and Deficit STILL go Up !
My paycheck gets bigger with Tax Breaks. A paycheck goes down with Tax Increases.
" Actually I know there are not . You seem to forget what I do for a living,"
And I know there are. Like I said.....we run in different circles. LOL !
Where did I say that? In fact, I think I gave a good example with the very expensive sodering irons.
And yes, we have tons of gov positions that could be cut.
But once again, that isn't what is causing the trillions that are being spent right now.
I tell them to determine what is needed to be spent on and remove what is not. A cost analysis.
But even with cutting unnecessary expenses, the deficit is going up from covering the loss in tax revenue and accounting for any growth in the economy. This is a fact.
Growth in the economy generates more tax revenue. That's why Trump was able to bring in record tax revenue with the tax cuts.
The deficit is going up because of entitlements. Blaming the tax cuts is like blaming a paper cut for killing someone who got decapitated.
But they reduced the outflow “cost” of the tax cuts by putting a 750k cap on mortgage interest deduction and a nationwide 10k cap on state and local tax deductions. That knocked the cost from 1.5 trillion over 10 years to 1.1 trillion over ten years. This tax on the rich was the first thing the democrat house tried to repeal last year.
Absolutely. If a Dem wins in November they will be handed a burning sack of shit economy on inauguration day, much like what happened to Obama.
Did you notice where all those new jobs are?
Service industry such as health care, trucking, warehousing, and hospitality services. No manufacturing jobs mentioned
Actually, I have not looked at those numbers. Now I will have to check that out.
That's from the seed. So construction added some jobs but only because it was a warm January. I didn't see anything mentioned about manufacturing jobs
Well, there is that, LOL!
According to NPR this morning manufacturing had a slight decrease. Part of that (but not all) is this coronavirus in China has shuttered several factories.
What has been happening to the size of the professional and upper classes?