Despite the government shutdown, the United States job market remained unfazed. Throughout the month-long shut-down U.S. firm continued to hire new employees. Over the month of January 304,000 jobs were added to the economy beating the estimates. While the Fed decided to not raise interests rates fears of an economic slow down were worsened, but the recent jobs report gives an optimistic view of the economic outlook.
“This jobs report is showing no evidence of an economy slowing, certainly not falling into recession. It’s still a tight labor market. Employers are still actively looking for jobs, and with wages ticking up, it looks like workers are getting some more bargaining power” Michelle Meyer, chief United States economist for Bank of America Merrill Lynch.
Furthermore, last month was the 100th consecutive month that the U.S. has seen job growth. So far the job market has weathered the trade war and government shutdown. It has remained strong and resilient and shows no signs of weakness.
Article: U.S. Job Gains Show Employers Shrugged Off Government Shutdown
3 comments:
The main street economy continues to hum providing both wage and job growth despite the recent Wall Street fluctuations. It has seen both tailwinds from the administration, historic tax reform and cutting red tape, and headwinds, mainly the trade war. However the "trade war" is something that may be overemphasized as it really and truly just may be the case that this is an opening position of the administration to help secure better deals with countries that have historically not "played by the rules" of the W.T.O., mainly China. It also seems that the administration may be succeeding as a trade deal that, according to the President, may be "the largest ever" which will see much more favorable terms for the United States compared to the present situation.
I agree that the trade war might have been blown out of proportion. I also think it was bound to happen and ultimately unavoidable. The U.S. would eventually have to deal with China's trade issues and what better time than when our economy is strong. The trade war could have had a much worse effect on the U.S. if it was started during a weaker economy.
Aidan, your article was very similar to the overarching concept of mine as well: the labor market seems to be strong in perspective to the government shutdown. On one hand this is definitely positive news, but I am also curious to the pending reports and economic data that has yet to be released from the commerce department and other institutions that were put on hold during the shutdown. I think these statistical measures will be crucial to painting a larger and more vivid picture of our current economic health. Also, as Greg mentioned, the trade war with China and its consequences are also very real, and I am curious to see if an agreement will be made in the coming days to avoid the hike in tariffs on imported goods that was promised earlier.
Post a Comment