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We had a fairly solid jobs report released on Friday. According to the Bureau of Labor Statistics, the U.S. economy added 227,000 jobs in November with growth concentrated mostly in health care, leisure and hospitality, government, and social assistance, while retail trade lost jobs. The unemployment rate remained at 4.2%, with 7.1 million unemployed, up from 3.7% and 6.3 million a year ago.
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Labor force participation held steady at 62.5%, and the employment-population ratio stayed at 59.8%, down slightly from last year. Long-term unemployment remained at 1.7 million, making up 23% of the unemployed. Meanwhile, 4.5 million workers were part-time for economic reasons, an increase from 4 million a year earlier.
Outside the labor force, 5.5 million people wanted a job but weren’t actively searching, including 396,000 discouraged workers. While job gains are promising, challenges such as underemployment and stagnant participation persist.
Joe Biden was quick to credit himself for the positive report.
“America’s comeback continues,” he said in a statement. “This has been a hard-fought recovery, but we are making progress for working families.”
However, it wasn’t really because of anything Biden did.
Alfredo Ortiz, CEO of the Job Creators Network, credited President-elect Donald Trump’s victory for the better-than-expected job growth and expressed optimism about the labor market under a Republican-led government.
“Republicans’ Election Day victory has renewed confidence among Main Street job creators,” Ortiz said in a statement. “The tough economic times of the Biden-Harris administration are ending, and the strong Trump economy is returning.”
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“However, cracks in the labor market remain due to four years of bad Democratic policies,” he continued. “Employment measured by the more accurate household survey fell again last month. The establishment survey shows around half of the new jobs created were created in the unproductive government and quasi-government sectors of the economy that don’t drive economic growth. And retail jobs contracted as retailers face numerous regulatory and cost headwinds.”
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“Trump and Republicans can reward their small business support and reinvigorate the labor market by passing an extension to the Tax Cuts and Jobs Act, set to expire next year, immediately upon taking office as part of a broader small business agenda,” Ortiz continued. “Extending and expanding the TCJA would patch the cracks in the labor market, help retailers and all of Main Street, and deliver productive job creation for years to come.”
This is an encouraging sign for all Americans because it suggests that Trump is already boosting economic confidence. There’s still a long road ahead to undo the damage that Biden and Kamala Harris caused, but it’s clear that job creators are feeling optimistic about Trump’s pro-business agenda.
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His promises of tax cuts, regulatory reform, and a renewed focus on American jobs have sparked hope for a stronger economy. Although Trump has yet to enact any policies, the positive sentiment following his election is already delivering measurable results in the labor market.