According to a new report from the U.S. Bureau of Labor Statistics, the nonfarm employment was up by 312,000 in December, exceeding all expectations.
The impressive jobs number shook the stock market loose from its doldrums, with the Dow posting a 747-point gain.
President Trump now has two full years of economic performance to compare with his predecessor, President Obama.
According to Forbes, the two biggest statistical standouts are:
Manufacturing jobs are growing at a 714% faster clip under Trump than over a similar time under Obama.
Under Obama, federal state and local government employment grew 6 times faster than did manufacturing jobs, while under Trump, that ratio has been reversed, with manufacturing jobs growing 5 times faster than government jobs.
At first sight, the numbers look comparable, with more than 5 million net notfarm jobs added during Obama’s last two years compared to more than 4.6 million jobs in the first two years of Trump’s term.
But in January 2015, the unemployment rate was 5.7%, close to what many experts thought at the time was full employment. Some of the experts also warned Trump that his tax cuts would quickly overheat the labor market, causing a round of inflation with little long-term benefit to workers. However, millions of Americans rejoined the labor force, with the unemployment rate declining to 3.9%.
8.9 million people were out of work in January 2015, and that went down to 7.5 million people in the last full month of Obama’s presidency. This December, that number was further reduced to just under 6.3 million people.
Looking at manufacturing, the government report noted that 32,000 jobs were added in December with 19,000 of the gain being in the durable goods component. In 2018, manufacturing employment increased by 284,000 with some three quarters of the gain over the year being in durable goods manufacturing, an indication that President’s Trump’s policies are likely causing a shift of manufacturing back to American soil.
This is huge because President Barack Obama himself said in June 2016 that manufacturing jobs “are not just going to come back,” and NYT columnist and economist claimed that “Nothing policy can do will bring back those jobs. The service sector is the future of work; but nobody wants to hear it.”