The U.S economy news gives a real-time data of 27 million casual workers in the American workforce. However, the Bureau of Labor Statistics states that out of this figure 5.2 million people are unhappy with their current job. Thus, they are active with the over 6 million unemployed people who are desperate to have a job. Economics forecasted a 200,000 job gain by February 2018. But they were alarmed at the rebound of last month’s labor-force participation, and the United States job openings.
Also, the February news highlighted that the construction industry jobs added 61,000 jobs; as the biggest addition since 2007. All stakeholders are watching a vibrant labor market changing the U.S economy landscape after the recovery of a turbulent recession. Economists, investors and government regulators are hopeful that by March 2018, at the next meeting of Fed policymakers, interest rates will go north.
Inflation and Wage Growth
This latest U.S jobs report is a sign that the economy is robust, and there are more employers in a massive hunt for employees. Also, unemployed people are currently visiting employment sites online as they can easily find new job openings. In February, service providers across the U.S added the total of 187,000 workers to the labor market. It was observed that when service providers gave a wage increase to their workforce, it attracted skilled and unskilled applicants to seek jobs in their sector.
With the recent declaration of tariff on imported aluminum and steel, Trump has not only created a trade war. But, his executive policy will close down construction industries that rely on import, and more people will seek for job openings. However, the new GOP tax reform for U.S companies enjoying a 27% reduction in repatriate foreign deposits is a soft landing. State government jobs and e-commerce business have given opportunities for career job search.
In the next five years, Apple will create a data center expansion initiative and will start looking for employees to hire. The creation of these jobs and a possible wage boost will see the addition of 50 billion dollars to the U.S economy. The wage growth which translates to average hourly earnings reached 2.9% level as an all-year high since the end of the last recessions. The 2018 February news shows that government jobs listed in the USA job openings can accommodate every skill set. This effort will decongest the tight labor market with young people looking for new jobs to offset the retirement bills of older people and senior citizens.
If wage growth continues, inflation will set in and create an impending increase in interest rate and destabilize the stock market. This condition will give the Feds an opportunity to stem inflation. The U.S employment index by the Labor Department shows that government jobs in the USA are increasing, and there has been a surge in the number of skilled workers interested in state government jobs. Despite looming fears of massive job cuts, the Trump job growth plan has seen an increase in the list of jobs in the U.S.A. Of course, there are diverse economic reactions to the executive tariff increase on imported steel and aluminum- this didn’t stop employers from going on a wild hiring campaign in February.
Record-breaking 313,000 jobs
After the addition of a record-breaking 313,000 jobs in February news of Trump job growth, the U.S stock market reacted positively to this development. When you view job data since, after the recent recession, the U.S economy has had a boost for job gain in 89 straight months. Also, February 2018 was the first time in one and half years for monthly job rates to record 313,000. Consequently, the current unemployment rate of 4% dropped by 0.1% since October 2017.
Last year, the highest job gains were a monthly average of 182000 jobs. This window of growth makes the U.S as the best place to look for jobs. With the disclosure of the recent, U.S economy news, U.S jobs report shows that the manufacturing companies added 31,000 jobs, and retailers added 50,000 jobs in February. Also, the financial sector jobs boosted the economy with 28,000 jobs; as the biggest addition since 2005. Labor Department ranks the U.S as one of the best places to look for jobs.
This is not a joke, as the U.S labor market is booming with a favorable Trump job growth- reported in the advertisement paper of jobs 2018. Data show that last January 62% of adults above 18 years old are job seekers. Also, Americans above the age of 18 are turning up massively in search of work to pay bills. However, employers’ biggest salary goes to new workers; especially those who can offer a solution and deliver a good deal. This trend relates to Jeff Bezo’s Amazon that diversified from selling books in 1999 to being a super e-commerce site; offering jobs young people across America.
It is feared that if wages go up, the effect will spike inflation, and investors are worried about this trend. Most blue-chip firms and unskilled labor sector are hiring through employment sites and offering higher pay with the addition of thousands of jobs monthly. Career job search can reach a level where there will be no unemployed people in America, but dissatisfied workers. When this scenario happens, will the Trump’s migration policy restrict skilled workforce from employing new migrants?
To this extent, there is an absence of an expansionist plan to keep industries booming- workers might just be running dry in the United States. A steady rise in job gains is a likelihood of increasing interest rates by the Feds. So far it shows that Trumps might have succeeded in adding more government jobs in the U.S irrespective of the recent in tax regulations policies of his administration.
In the U.S labor market, there are 6.7 million unemployed people. Thus, a steady yearly increase in the jobs will boost labor strength. Economists never foresaw the magnitude of this surge and corresponding economic growth. More so, the average hourly earnings in U.S employment may be low, but the stock market is focused on wages. This focus brings another positive drive for the equity markets. Wages propel consumption, thus increased payroll will put pressure on inflation.
The last recession created an innovative response from people who lost their jobs and businesses that closed down. Consequently, more jobs were created as people sought employment. The advancement of technology and artificial intelligence have created U.S employment for more people to work remotely. Thus, a career in the U.S is a wise choice to make in the coming years.
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