Last month, we heard from Democratic Presidential Candidates that they would raise tax rates if and when they took office. Clearly this would be a mistake because the economy has been rolling since the Tax Cuts and Jobs Act (TCJA) was passed in late 2017.
The June jobs report showed that nonfarm payrolls rose by 224,000, which was well above the market expectations. Unemployment is still at a near 50-year low. These numbers eased recession fears and showed that the U.S. economy is still thriving. Average hourly wages also continued to show growth this month, up 6 cents to $27.90.
This payroll growth is the best gain since January of this year. Professional and business services led the job increases, adding 51,000 to their payrolls, while health care added 35,000 and transportation and warehousing added another 24,000. Construction added 21,000 to its payroll, and manufacturing added 17,000 jobs. The labor force continues to grow, unemployment is staying low, and jobs continue to be created. This is the longest period of economic expansion on record, according to the head of global markets at Citizens Bank, Tony Bedikian.
Thanks to the TCJA we are seeing a thriving economy. President Trump’s tax reform has created the best environment for business and economic growth in years.