Plentiful Jobs Are More Evidence of a Story That Should Be Told

Of course, you wouldn’t know it from the press, but today’s job report for September was actually quite strong, it extends the economic boom that I’m now calling the greatest story that should be told.If you do your homework, and look under the hood, the household employment survey from which the unemployment rate is derived shows a whopping gain of 406,000 jobs, following last month’s increase of 569,000 jobs. The reason the unemployment rate went up slightly to 4.2 percent from 4.1 percent is that we’ve had a vast increase of new job entrants. In September, the civilian labor force increased by 485,000, following a 683,000 gain in August.That’s a 1.1 million increase in new entrants, and a 975,000 increase in jobs. These kinds of numbers show a very hot economy. But there’s more.During the past 12 months, wages of employees in production, like, say, machine operators, have increased 3.3 percent, while hours worked in this sector increased 1.9 percent.To get a picture of total income strength, what many economists call the wage income proxy, which is hourly earnings times hours worked, comes to an incredible 5.2 percent.That beats inflation by a mile, because the year-over-year change in the personal consumption expenditures deflator for August was 3.4 percent. On inflation, though, let me make another point. The 3 month change for the core PCE deflator, excluding food and energy, was only 2.0 percent annually.And if you add back food and energy, the overall PCE deflator for the 3 months ending in August, is only 1 percent.So let’s step back a moment: More than a million new job entrants show how much people want to go to work in the booming economy.And for those who are working, total wages are beating inflation by a lot. This is a big part of the story that should be told.Now as for non-farm payrolls, they’re trending above the break-even rate to hold back unemployment.Over the past three months, they’re up by 54,000. For the year they’re trending at 59,000.Goods producing jobs are up 29,000 for the past 3 months, 13,000 for the past 12 months. Manufacturing and construction jobs are rising. President Trump in Texas yesterday commented on the manufacturing boom: “Wages for manufacturing workers are up by nearly almost close to $4,000 since I took office. And after years of decline this year, the United States has added 60,000 new manufacturing jobs and heavy truck manufacturing is almost up by about, what, 31 percent or something?” He added that: “heavy truck shipments have hit an all time high, the highest in the history of our country under the Trump administration. So America trucking is back.”And one final point. Business is booming. Capital goods orders and shipments are rising at a near 20 percent rate.And economist Mark Skousen tracks business-to-business spending, charting the intermediate stages of production, and that grew 13.8 percent in the second quarter. Total B-to-B spending is about $35 trillion last year, higher than the $31 trillion GDP.It’s the very heart of the economy. And it is booming. Another segment of the greatest story that should be told.From Mr. Kudlow’s broadcast on Fox Business Network.

Plentiful Jobs Are More Evidence of a Story That Should Be Told

Plentiful Jobs Are More Evidence of a Story That Should Be Told

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