The monthly jobs report from the Bureau of Labor Statistics released Friday morning shows that the economy continues to flourish. 201,000 new jobs were added last month, while the unemployment rate stayed steady at a very low 3.9 percent.
Unemployment rates for African-Americans and teenagers continued their decline to historic lows, while US factory activity was at a 14-year high and new unemployment claims at their lowest point since the 1960s. The long-term unemployed (those out of work for 27 weeks or longer) has fallen by 24 percent in the last year. The number of part-time workers who want full-time work has gone down by 16 percent over the last 12 months. Wages are rising at a faster pace than they have, a sign of a tightening jobs market.
Corporate profits are robust (thanks partly to the cut in the corporate income tax) and consumer spending has been rising. The GDP has been growing at a more than 4 percent rate in recent months. In short, the American economy has rarely been this good and certainly wasn’t during the long, sluggish recovery from the 2008-2009 recession under the Obama administration.
In an ordinary year, one would expect that with economic numbers this good, the party controlling both houses of Congress and the White House would be looking forward to doing well in the upcoming midterm election, even though the party holding the White House usually loses seats in midterms. But, of course, no year is an ordinary political year with Donald Trump in the White House and the Democratic Party moving ever more to the left.
November 6 will be an interesting night.
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