August 20, 2017

Trump’s Economic Comeback – 1.29 Million Jobs

Love him or hate him, job creation is happening under President Trump – 1.29 million jobs have been created since he took office in January – helped with the addition of 209K positions in July, plus June data was revised higher by the Bureau of Labor Statistics. And the unemployment rate dropped to 4.3%.

Trump is just getting started…. so he said in a tweet Friday following the July jobs data.

Indeed, coincidently on Friday, Toyota (TM) and Mazda announced a plan to invest $1.6 billion in a U.S. factory, in a state yet to be named. This is expected to create 4,000 jobs. Last month, Apple (AAPL) supplier Foxconn agreed to open a factory in Wisconsin, which is expected to generate 3,000 jobs and the company indicated that number could grow.

Still, some remain skeptical of the President. Newsweek’s new cover labeled him ‘Lazy Boy’. FOX Business anchor Neil Cavuto took issue with the cover, calling it “unfair to the President of the United States” while also acknowledging that POTUS is far from perfect. He also defended the way job creation and economic progress should be covered regardless of politics. “Was that all the President? No but it happened under the President and similar good things happened under Barack Obama, all the media would naturally credit Barack Obama, it flips the other way too if it doesn’t go your way,” he points out.

Even before President Trump officially took office in January he began strong arming American CEOs, some of whom, reversed plans to move jobs overseas.

In November of last year, Carrier, a unit of United Technologies (UTX) agreed to keep 1,100 jobs in Indianapolis. While the company said in a July statement Opens a New Window. that it remains committed to these jobs, a realignment of manufacturing operations will impact “600 Indianapolis jobs over the next several months” as previously announced.

Then came Ford (F), which scrapped plans to move production of the Lincoln SUV from Kentucky to Mexico, prompting the President to give a shout out tweet to scion Bill Ford.

The President is also attempting to revive the beleaguered coal industry with the opening of the Acosta Coal Mine in Pennsylvania, the first in many years. Corsa CEO George Dethlefsen told FOX it will create 70 jobs.

Five of the six months since taking office, the economy has generated north of 200K jobs, the level economists like to see for a growing economy. These numbers have the White House in a celebratory mood.

Jobs Created in 2017

  • January:   216K
  • February:  232K
  • March:      50K
  • April:        207K
  • May:        145K
  • June:       231K
  • July:        209K

Source:Bureau of Labor Statistics 

“We now have created well over a million jobs since the Trump administration [has] come into office and since the election. The economy continues to grow. We got a GDP number last week of 2.6% for the quarter, unemployment rate down to 4.3%, back down to a 16-year low. Things are on course for the economy,” Gary Cohn, White House National Economic Advisor, told FOX Business’ Stuart Varney.

Not everything is as rosy as the White House would like. While jobs are growing the U.S. economy is still struggling to see sustained GDP growth above 3%, but there are signs of a rebound. An advance estimate for 2Q came in at 2.6% last month, stronger than the 1Q’s 1.2% showing.

And then there’s the question of stalled policies such as healthcare, which some say spells doom and gloom for tax reform, a cornerstone of the Trump administration’s pro-business push.

Still, despite those concerns investors like what they see so far. U.S. stocks continue to notch fresh records with the Dow Jones Industrial Average scoring a new milestone this week – 22K. Roughly $4 trillion in market value has been added to the stock market under President Trump with the S&P 500 averaging a 10.5% return for 2017 giving 401(K)s, pension funds and investment accounts a solid boost.

Suzanne O’Halloran is Managing Editor of FOXBusiness.com and a graduate of Boston College. Follow her on @suzohalloran  Opens a New Window. .

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