The recent employment generation statistics released by the Labor department for the preceding month of march has been met by rather disappointing figures of just the creation of 98,000 job opportunities against the expected figure of 180,000.
This has been conceived as the underperformance of the Economic department when compared with the achievements gained in the beginning of the year. Where a total of more than 200,000 jobs were added in the economy in the month of January combined with February.
According to many experts, severe weather hitting in some parts of the US was considered the pinning reason for this underachievement.
The explanation forwarded by the officials explains that the disruption and chaos caused by the recent lower temperatures disrupted the hiring system in those areas, which directly impacted the statistics for the preceding month. Also made the data collection in those areas a quite difficult task; possibly fewer than actual houses were covered in the survey.
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However, the White house officials in their various statements have been associating this upsurge in employment growth for the starting months with Trump’s presence in the office as President.
According to them, Mr. Trump’s bold promises and his determination to better the health of American’s Economy has uplifted the confidence of investors and employers to invest their capital in the economy, resultant amplifying the rate of creation of jobs opportunities.
Despite the low figures in March, economist seems to be optimistic while claiming this downward trend as ‘temporary’ phase.
Since Report not only marks an increase in the rate of unemployment falling from 4.7 to 4.5 as this can be taken as the evidence of beacon for the revival of the economy.
Also, 4.5 marks the lowest unemployment rate ever recorded since the immediate revival of the last recession hitting the US economy in May 2007.
The optimism can be seen in the fact since the last hit recession of 2007 US economy was unable to come near the number 5 which when deciphered on scales indicates the full-employment rate.
Hence a 0.2% decrease in the unemployment rate is seen as synonymous to reaching near the goal of full employment.
However, columnists Neil Irwin in his opinion writing has said that it’s just the mere appreciation of media headlines that has been reversing Trump’s presence as the direct factor for job growth.
According to him, the February statistics were a measure from mid which marks the mere time period of only 3 weeks to Trump’s presidency, and in that, while he didn’t take any stern action for the correction of the economy also the remaining executive orders passed were more about direction rather than any course of action.
No taxation or Federal spending policies were formulated to be implemented; therefore no credit due on his shoulders.
According to him, the president do affects the happenings in the economy but it takes a course of several years for any kind of change to be apparent.
Also, the percentage figure of unemployment has been oscillating within the range of 4.5-4.7 since the September 2015.
The job numbers might be the good factor to describe the economy’ health when in recession but no such indicator are visible at the moment, therefore when studying the rate of 4.5 when economy is instability the reasons vary much more like the availability of workers, immigration factors, birth rates or simply people might prefer to stay home.
Thus, factors that must be explored are the wage rates, employment-to-population ratio and the age group that needs to be included in the workforce if the core problems are to be addressed.
