September Job Report: Job growth slowed in September

Job growth slowed slightly in September, with 136,000 new jobs added to the US economy, compared with 168,000 (revised) jobs created in August, according to the recent Labor Report of the Bureau of Labor Statistics . Wages actually fell.

The decline – led by the loss of retailers and industry – suggests that President Donald Trump's trade war with China is hurting industries that depend on exports and imports.

For the first time in years, production jobs are beginning to shrink, creating a potential political responsibility for the president. One of his most important campaign promises was to bring production jobs "roaring back to life."

But in September, the US economy lost 2,000 factory jobs. The retail industry lost 1[ads1]1,400 jobs.

These figures are preliminary and may be revised later. But the losses help explain why general economic growth has been so slow lately.

In other respects, the latest job report shows a US economy doing well.

For example, unemployment fell even further, to 3.5 percent. It is the lowest proportion of unemployed Americans registered since December 1969.

However, none of this matters much to middle and working class families: Workers' hourly wages fell by a penny in September. While that may not seem like much, it is worth remembering that wages should grow, not shrink, during the longest economic expansion in US history.

It is still relatively easy for many to find a job these days, and those who lose the job or decide to leave do not find it difficult to find another job.

But millions of Americans work part-time when they would rather get full-time gaming jobs, or at least work several hours. The number of people in this group – 4.4 million workers – did not vote in September.

The health service added the highest number of jobs in September: 39,000. Nurses, physiotherapists and home helpers are in demand right now. Companies that provide services to businesses – such as caretakers and security guards – also created many jobs.

Department of Labor / Bureau of Labor Statistics

The average monthly job growth so far in 2019 is about 161,000, which is a remarkable drop from the 223,000 jobs created on average each month last year. The decline is not alarming; it can only mean that the current job shortage makes it difficult for employers to fill all the open positions. There are far more vacancies right now than there are people looking for work.

Businesses do not share profits with workers

Although Americans find jobs quite simply, they still do not see the so-called economic boom reflected in their wallets.

September was another month of stagnant wage growth. With such a tight labor market and rising productivity, workers should expect large pay rises, not shrink wages.

Private sector workers (excluding farmworkers) received an average of 1 kroner less per hour than they did in August, adding up to an average hourly wage of $ 28.09. Over the past 12 months, the average hourly wage has increased by 2.9 per cent. It reflects a slowdown in wage growth, and it does not even take inflation into account.

Recent wage data suggest that workers still do not benefit from the longest economic expansion in US history. Slow revenue growth has been the weakest part of the US economy in recovery from the Great Recession.

Wage growth has barely exceeded the cost of living increases, even as unemployment fell and the economy expanded . The fall in wages in September suggests more of the same.

Over the past year, the cost of food and housing has increased, so wage cuts have had to extend further. The annual inflation rate fell to 1.7 percent in August, well below the high of 2.9 percent in July 2018 (based on the Consumer Price Index ) for the last seven years.

Taking inflation into account, workers' real wages grew only about 1.2 percent over the past year. I would repeat this again and again: During the longest economic expansion in US history, with record low unemployment, workers earn just 1.2 percent more than they did a year ago, after adjusting for inflation.

While payrolls are growing more than they did last year, the numbers are still pitiful when you compare them to the soaring payouts the CEOs receive. For example, CEOs received an average salary cap of $ 500,000 in 2018, while the average American worker received an additional $ 1,000 – barely enough to outpace inflation.

Frustration over stagnant wages is also the main underlying factor behind widespread widespread worker strikes across the country in places such as California, Michigan, Illinois and Missouri. In August, 20,000 AT&T workers went on strike across the South to force the company to negotiate better wages and benefits. After three days on strike, the company agreed to negotiate.

Nearly 50,000 General Motors employees have been on strike for three weeks right now. One of the reasons they are upset is that the company continues to hire temporary workers at half the price of a regular employee.

The widespread work turmoil underscores how the Republican tax cuts did little to help the working-class families. despite all the promises of Republican congresses.

In response, voters in some states have forced businesses to give low-paid employees an increase. In November's provisional elections, voters in Missouri and Arkansas approved overwhelming ballots that would raise the minimum wage for nearly 1 million workers in both states. And as a result of the new laws, more than 5 million low-wage workers in received 19 states wage increases on January 1, .

These laws have helped raise wages so far in 2019, but not by much.