Despite the liberal media’s predictions, two new reports show that President Trump’s economy is still as strong. The U.S. economy added 130,000 jobs in August, defying Democrats who said that tax cuts and deregulation were no longer working. The economy has added over 6 million jobs since President Trump took office.
This morning’s Bureau of Labor Statistics report shows that the unemployment rate remained steady at 3.7 percent. In 30 of the 33 months since President Trump took office, job gains have surpassed 100,000. The unemployment rate for African Americans hit a record low at 5.5 percent, and the Hispanic unemployment rate matched previous record lows at 4.2 percent.
Labor force participation increased to 63.2 percent in August, a stark contrast to the 40-year lows that metric hit under the Obama Administration.
The civilian labor force increased by 571,000 according to the BLS household data, the largest such gain since October 2018 and the fourth consecutive month of labor force growth.
Wages are also continuing to grow. Over the past year, average hourly earnings have increased by 3.2 percent. Nominal average hourly wage gains have not reached 3 percent since April 2009.
The healthcare industry added 24,000 jobs in August, and added 392,000 over the past year. Professional and business services added 37,000 jobs in August, and financial activities employment rose by 15,000.
This positive economic news echoes a report released Thursday from the ADP Research Institute which shows that business payrolls increased by 195,000 in August. The report also shows that small businesses added 66,000 jobs in August, a four-month high, while mid-sized companies added 77,000 jobs and large corporations added 52,000 jobs.
These strong jobs reports and the positive underlying economic indicators show that the Tax Cuts and Jobs Act is continuing to work for American workers.
Businesses have responded to the tax cuts by giving employees higher wages and creating new employee benefit programs, while utility companies are passing tax savings onto consumers in the form of lower rates.
Families are also seeing direct tax reduction – a family of four with annual income of $73,000 (median family income) will see a tax cut of more than $2,058, a 58 percent reduction in federal taxes. In net, households are paying an average of 24.9 percent in lower taxes according to a report released by H&R Block based on their clients’ tax returns.
Tax cuts and deregulation championed by the Trump Administration is continuing to deliver a prosperous economy for all Americans.