In his first six months on the job, President Trump has presided over an economy that is creating jobs at a pace that is 50 percent faster than under President Obama.
The Labor Department said Friday morning that payrolls grew by in July, more than economists expected. The unemployment rate fell to 4.3 percent, matching a figure in May that was the lowest since 2001.
Since January, the economy has added nearly 1.1 million jobs, or an average of 179,000 per month. From January 2009 to January 2017, under the Obama administration, the economy added an average of 120,000 jobs per month.
Of course, timing accounts for some of the difference. Obama inherited a recession, and the economy did not start creating jobs again until 2010. The end of the Obama years was much more robust, with an average of 221,000 new jobs per month.
Trump fans would say that the economy is adding jobs in response to a big rollback in regulations on business and rising optimism that the country is on the right track.
Trump detractors would counter that the administration inherited a strong economy from Obama and that the economy is coasting as Trump has proven unable to win major legislative victories.
Both views have some merit. While federal policies are important, the health of the economy also rests to a large degree on the nation’s psyche. If people are optimistic about their finances, they spend money. If businesses believe the future is bright, they hire more people and invest in equipment. Indicators of consumer and business confidence have remained strong.
As a result, the stock market continues to surge. The Dow passed 22,000 for the first time this week, buoyed in large part by companies’ stronger-than-expected financial performance in the second quarter.
Trump this week cast himself as Rodney Dangerfield, saying the media is giving no respect to the country’s positive economic numbers:
Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!
— Donald J. Trump (@realDonaldTrump) August 1, 2017
He also celebrated the new jobs numbers this morning:
Excellent Jobs Numbers just released – and I have only just begun. Many job stifling regulations continue to fall. Movement back to USA!
— Donald J. Trump (@realDonaldTrump) August 4, 2017
The economy is also approaching another economic record—one that’s more ominous. It has been eight years since the last recession, one of the longest periods of expansion since World War II. Most expansions peter out much more quickly. The record of 10 years was set in the 1990s.
