08 Aug July Jobs Report
The Bureau of Labor Statistics released data last Friday which shows the United States economy is continuing to outperform expectations.
One-hundred fifty-seven thousand jobs were added and the unemployment rate fell to 3.9% after a small spike in June. Importantly, many of the jobs added have been in the manufacturing sector. Over the past twelve months, manufacturing has added three-hundred twenty-seven thousand new jobs, a sign that the sector is recovering from the massive losses incurred during the Great Recession.
The 3.9% unemployment rate is slightly higher than it was in May (3.8%), but in both May and July it was lower than it had been at any point since before the tech bubble burst in 2000. Even the most poorly educated have seen positive gains in employment ‒ their unemployment rate fell to a record low of 5.1% in July.
This data comes after the surprising news that second-quarter GDP growth reached 4.1% ‒ a virtual impossibility according to many economic projections. This growth shows that the national economy is strong, and reflects well on many of the actions Congress has taken to encourage American businesses.
Congress was able to pass broad reforms to lower individual tax burdens and encourage businesses to invest in the United States. On average, American households are keeping more of the money they earn. And when it comes to tax reform’s impact on the larger economy, 4.1% GDP growth speaks for itself.
The excellent economic position of the United States is a result, in part, of these pro-growth policies. Leaders in Congress, particularly those in the Republican majority, have helped pave the way to prosperity for many Americans, and deserve recognition for the incredible success of their economic agenda.