The month of August contributed to the growing economy as 201,000 jobs were created, furthering a 95-month streak, and wages increased by 2.9% as the summer comes to a close and people go back to work.
Not only did nonfarm payrolls rise in the month of August, but average hourly earnings surged past an expected 2.7% to 2.9%. This wage growth was the highest since midsummer of 2009.
The Federal Reserve is using this data in order to guide their fourth interest rate hike this year. According to Quincy Krosby, chief market strategist at Prudential Financial, this report does not suggest a future “downturn in the market,” but rather “indicative of a tight labor market.” Thus, she says, the Fed is “in play” for a fourth rate hike.
While the unemployment rate remains at a historic low of 3.9%, employers continue to struggle to find enough employees to fill their empty positions. The number of job openings has exceeded the number of unemployed people since March of this year, according to CNN Money.
Since President Trump’s election, the unemployment rate and average hourly wages have seen their best days since the 20th century. The overall trend of the unemployment rate has signaled more jobs coming back to the U.S. and higher wages being paid hourly. Some of this is due also to the tax cuts that were passed by Congress late last year and put in place early this year.
As many can imagine, the president is very proud of these numbers that were reported as well as his past accomplishments as Commander-in-Chief. He even captured some flattering comments from James Freeman of the Wall Street Journal, who said the president’s record is “quite remarkable,” and that “people should focus on the results” of his presidency.