Despite the government shutdown private sector employment increased by 213,000 jobs from December to January according to the January ADP National Employment Report. Wall Street economists had forecast an increase of 174,000. The Dow Jones Industrial Average and S&P 500 both reacted positively to the news. The Dow rose 1.77% while the S&P rose 1.56%.
January 2019 Report Highlights*
Total U.S. Nonfarm Private Employment: 213,000
– Small businesses: 63,000
– Medium businesses: 84,000
– Large businesses: 66,000
– Goods-producing: 68,000
– Service-providing: 145,000
* Sum of components may not equal total, due to rounding.
The job market weathered the government shutdown well. Despite the severe disruptions, businesses continued to add aggressively to their payrolls” said Mark Zandi, Chief Economist at Moody’s Analytics which produces the report in collaboration with ADP. “As long as businesses hire strongly the economic expansion will continue on”.
“The labor market has continued its pattern of strong growth with little sign of a slowdown in sight” said Ahu Yildirmaz, Vice President and co-head of the ADP Research Institute. “We saw significant growth in nearly all industries, with manufacturing adding the most jobs in more than four years. Midsized businesses continue to lead job creation, however the share of jobs was spread a bit more evenly across all company sizes this month”.
Let’s look at the economy and job market in a bigger scope.
President Trump has created more than 5 million jobs in his first two years in office. This is the first time since November of 1969 that initial unemployment claims have fallen below 200,000. The unemployment rate is 3.9%. It has only been below 4% 5 times since 1970. African-American unemployment was at 5.9 percent in May the lowest ever recorded. Women’s unemployment recently reached its lowest rate in 65 years. In 2018 284,000 manufacturing jobs (jobs that Obama said weren’t coming back) were created. This represents the most new manufacturing jobs in any single year in more than 10 years. Currently job openings outnumber the unemployed for the first time on record. Additionally workers have seen the largest year over year wage growth in almost 10 years.
Due to President Trump’s strong economic strategies the U.S. has moved up six spots to #12 in the Heritage Foundation’s 2019 Index of Economic Freedom.
Obama said “2% GDP growth is the new normal for the U.S. economy” while presiding over an average 1.65% GDP growth. President Trump has averaged twice Obama’s GDP growth including over 4% growth in the 2nd quarter of 2018.
Watch for our new podcast coming February 2, 2019. Through the blog and podcast we will continue to bring you content in hopes of energizing Conservatives in New Jersey and across America.
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