By Jeff Cox
December 6, 2019
The jobs market turned in a stellar performance in November, with nonfarm payrolls surging by 266,000 and the unemployment rate falling to 3.5%, according to Labor Department numbers released Friday.
Those totals easily beat the Wall Street consensus. Economists surveyed by Dow Jones had been looking for solid job growth of 187,000 and saw the unemployment rate holding steady from October’s 3.6%. The decline in November’s jobless rate came amid a corresponding 0.1 percentage point drop in the labor force participation rate, to 63.2%.
Stocks opened sharply higher in reaction to the better-than-expected report. Bond yields also surged.
“Bottom line, America is working,” Larry Kudlow, director of the National Economic Council, told CNBC’s “Squawk on the Street.” “These are very strong numbers. These are happy numbers, these are sunny Friday numbers.”
Read more at CNBC
By Kevin Stankiewicz
November 19, 2019
Former U.S. Treasury Secretary Larry Summers bashed presidential candidate Sen. Elizabeth Warren’s tax proposals on Tuesday, arguing they go too far and could ultimately hurt the American economy.
“I don’t think that taxation approaching confiscatory is remotely feasible and, if it was tried, would have catastrophic economic consequences,” the former economic advisor to Barack Obama said on “Closing Bell.”
Summers has cast doubt on Warren’s flagship wealth-tax proposal before, but his criticism Tuesday targeted her wide-ranging tax proposals.
“Essentially, what Sen. Warren’s plans would do, as I read them, is they go through every option that has been selected as the possible strategy for raising progressivity and tries to do them all at once,” Summers said.
By doing so, Summers said, “you’re collecting, essentially, about as much taxes as the total after-tax [adjusted gross income] of all the millionaires.”
Read more at CNBC.
By Aimee Picchi
November 11, 2019
Bob Johnson said he had to make a difficult decision to close his Maine bakery’s second location this fall. It wasn’t due to a lack of customers or sales—but rather an inability to find staff.
“When we went through two to three iterations of trying to hire and banging our heads against the wall, I was like, ‘Let’s focus on the bakery’,” Johnson said, referring to his original location in South Portland’s Willard Square. “Everybody’s hiring, and people are jumping around town,” making it more difficult to find workers, he added.
Johnson said he raised wages at his bakery, Scratch Baking Co., paying $40,000 to $50,000 to team managers and as much as $15 an hour plus customer tips for front-of-the-house staff. But he still couldn’t find enough workers to keep his second location open.
Read more at CBS News.
By Steve Moore
November 7, 2019
I recently wrote op-eds that ran in the Wall Street Journal and on these pages that showed median household incomes under Donald Trump have soared from $61,000 to an all-time high of $66,000 in less than three years into the Trump presidency. This is tremendous news and documents substantial middle-class prosperity in Trump’s first three years in office.
The $5,003 rise in middle-class incomes is especially impressive given that incomes only rose by $1,200 in the seven years under Obama — after the recession ended.
If the media, liberal think tanks and Democrats in Congress were truly concerned about the economic well-being of “hard-working families,” as Elizabeth Warren likes to say, they would have cheered to the rafters this amazing news of rising incomes for nearly all groups.
Instead, the left has chosen to either ignore this story altogether or to denounce these findings, which come from the gold standard of economic data, the U.S. Census Bureau.
Read more at Fox Business.
By Charles Gasparino
November 4, 2019
If the stock market is worried about the President Trump getting impeached it has a funny way of showing it: The Dow, the S&P and Nasdaq set new records Monday, buoyed by strong corporate earnings, a possible trade deal and the wide-spread belief among sophisticated investors that the US economy will continue to chug along handsomely.
Despite what you hear from doomsayers like the newly minted Dem front-runner Elizabeth Warren, the rising Trump economy is raising all boats, not just the fat cats on Wall Street. At least that’s what the people who have money in the game are saying, and their word counts a lot more than any leftist politician.
Of course, even in the best of times — and according to the data we are pretty close to them now with unemployment hovering at a 50-year-low of 3.6 percent — there are things to worry about. Trump and Chinese president Xi Jinping may not reach their long-coveted trade deal. Sluggish business investment (which declined in the last quarter by an annualized rate of 3 percent after a 1 percent decline) could get even more sluggish, sending the modest economic growth of 1.9 percent in the past quarter into the red.
Read more at the New York Post.
By Jeff Cox
October 4, 2019
Unemployment hit a fresh 50-year low in September even though nonfarm payrolls rose by just 136,000 as the economy nears full employment, the Labor Department reported Friday.
The jobless rate dropped 0.2 percentage points to 3.5%, matching a level it last saw in December 1969. A more encompassing measure that includes discouraged workers and the underemployed also fell, declining 0.3 percent points to 6.9%, matching its lowest in nearly 19 years and just off the all-time low of 6.8%.
Stocks opened higher
following the jobs report, with the Dow Jones Industrial Average up nearly 150 points.
Get the market reaction here.
Also, the jobless rate for Hispanics also hit a new record low, while the level for African Americans maintained its lowest ever.
At the same time, the economy saw another sluggish month of growth. The nonfarm payrolls count missed the 145,000 estimate from economists surveyed by Dow Jones; the expectation on the jobless rate was to hold steady at 3.7%.
Read more at CNBC.