The latest jobs figures are in and they show the economy is in much better shape than most assumed. In fact, we might even be in the midst of a V-shaped recovery as President Trump promised when the pandemic started. This is quite the accomplishment considering the fact that America’s real unemployment rate hovered around depression-era levels merely a couple months ago.
A Deeper Look Into the Jobs Figures
The jobs figures released at the end of the week show the country added nearly 1.4 million jobs in August alone. The icing on the cake is the fact that the nationwide unemployment rate dropped to an impressive 8.4%. Some economists predicted we would have double digit employment deep into 2021 or possibly even longer.
The latest figures provide much-needed reassurance that the labor market is returning to at least a semblance of normalcy. Economists predicted 50,000 fewer jobs would be added in August than were actually realized. Furthermore, economists predicted the unemployment rate for the month would be a hair under 10%. It is clear President Trump has the economy pointed in the right direction.
Hiring is Spiking Amidst the Pandemic
All in all, the American economy has added more than 10 million jobs across the prior four months. The boost in the number of employed Americans indicates the private industry is hiring at a faster rate than many expected. Furthermore, the jump in the jobs figures shows businesses ranging from restaurants to stores and other organizations are receiving more business than anticipated. This is the fourth straight month in which the unemployment rate and the number of unemployed persons decreased.
A Manufacturing Rebound
The manufacturing sector has proven to be one of the country’s strongest. Employment in this industry increased by nearly 30,000 in August alone. The nondurable goods space enjoyed a gain of 27,000 jobs. All in all, the private sector as a whole added nearly one million new jobs. This is two times the estimate for the month made by ADP, one of the nation’s top payroll processors. Add in the fact that the federal government hired hundreds of thousands of people, many of whom will conduct the census, and the foundation for an epic economic rebound is in the making.
Can Trump Ride the Economic Prosperity to Success?
As long as the stock market holds steady through November, there is a good chance President Trump will be re-elected this fall. It is clear the jobs picture is getting rosier with each passing month. If both the jobs market and stock market rise in unison in the months ahead, Trump’s campaign for re-election just might become an unstoppable force.
However, even if there is a slight economic contraction moving forward, Trump has an ace up his sleeve in the form of a second stimulus payment. This injection of cash directly into the economy a month or two prior to the election just might be enough to help Trump overcome challenger Joe Biden and win re-election.