Summary: The U.S. economy has delivered steady gains for most Americans since the Great Recession in 2009. It’s been a frustration for many. Nearly nine years into the recovery, the job market keeps delivering: The government said Friday that employers added 164,000 jobs in April, the 91st straight month of hiring growth, the longest such streak on record. More tellingly, the unemployment rate fell to 3.9 percent, the lowest since December 2000.
However, pay growth, on average, has been poor. The stock market boom and low interest rates that defined the recovery have favored the wealthy. The economy’s modest growth, though, has helped prevent it from overheating and skidding into another recession, as often happened during more robust expansions. And some economists say a low unemployment rate suggests that more Americans will soon stand to benefit from stronger pay growth.
Analysis: I believe this is a good thing as low unemployment rate means there are fewer available workers for each job opening. That gives an advantage to those looking for jobs and provides more opportunity to Americans on the margins of the labor force. Additionally, low unemployment forces employers to raise pay more sharply to attract and retain workers.
Questions:
What are your thoughts on this topic?
Do you thing the unemployment rate will keep dropping?
Does Trump’s administration deserve some credit for it?
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7 comments:
Of course, I agree that a low unemployment rate is quite good for those looking for jobs, and you're right in saying that this gives the unemployed a higher chance of finding employment. In terms of whether the Trump administration is responsible for this... I think the answer is mixed. They haven't hurt the economy, in my opinion, but they haven't reached the growth that they bragged about. http://www.latimes.com/business/hiltzik/la-fi-hiltzik-gdp-growth-20180126-story.html this article from the LA Times outlines the growth that the administration had projected, and details the truth behind why the projection was incorrect, and the way these numbers compare with that of Obama's second term. The nation's economy definitely shouldn't be criticized, but I don't think that all of the praise should go to the current administration.
I do not think that the Trump administration should take full credit for the low employment rate for the reasons that Ariana explained above.
While unemployment rate has been getting better since the recession, I do not believe this trend will stay for long. I believe that while unemployment rate is decreasing, it's not decreasing as much as previous years. Low unemployment rate does mean that more people who are seeking jobs are getting them, but it can also mean that since the baby boomers are retiring, more job opportunities are opening for the younger generations. I do not think that Trump administration should get all the praise for it either because of that.
Low unemployment is awesome. For the economy, for people, it's something that is a great benefit. I think for many of the good things happening economically recently; a lot of credit must be given to previous administrations. Trump has been in office for a few years, but policy takes a while to see the effects. It's possible Trump has helped the economy, but I think many of the successes must be attributed elsewhere.
The economy has mostly been doing really well for the last year, and the new low rates of unemployment demonstrate that. However, the Trump administration is not taking advantage of higher employment rates by raising minimum wage. Even if people are working, that does not mean that they are above the poverty line. Additionally, when the economy is good the government should be saving for recession times and funding the debt. However, Trump's tax cuts means that the debt is only increasing and the country is not prepared for another recession which is inevitable.
What are your thoughts on this topic?
-i believe that the though of money and the increasing economy is good and that the people who are complaining dont see the fact that the rich have made money from being smart and knowing when to take their opportunity
Do you thing the unemployment rate will keep dropping?
-i believe it will continue to drop because of more jobs and higher wages in given states
Does Trump’s administration deserve some credit for it?
-no
I think that the economy has been doing pretty well so far. Having low unemployment makes it better for those of us to find and keep jobs. However, I think that we should not count on this to continue to decrease, as with everything, there is gonna be an end to this and it may go back up. With higher wages, it may even cause some employers to have to unemploy some people. Like everyone else said, I think it is too early to tell if the Trump administration should be praise for this, as it could be a result of the administration being there at the right time.
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