MAGAnomics – Stunning Job Gains in February +273,000, With Revised Gains of +85,000 Dec/Jan…

Jumpin’ ju-ju bones.  The Bureau of Labor Statistics highlights an excellent jobs report for February with 273,000 new jobs added; and an upward revision of 85,000 job gains in December and January.  Total new jobs with revisions 358,000; that’s exceptional.

Main Street USA is very strong, exceptionally strong; and the fundamentals of the U.S. economy show balance and overall strength.  Keep in mind, while all of this growth is happening the full impacts of the renegotiated trade deals have yet to kick in.

Highlighting the strength in the overall economy the construction sector added 42,000 jobs in February, following a similar gain in January (+49,000). In 2019, construction job gains averaged 13,000 per month. In February, employment gains occurred in specialty trade contractors (+26,000) and residential building (+10,000). This specific metric is important because it highlights economic expansion from U.S. workers and households having financial strength for home purchasing.

(BLS DATA) Total nonfarm payroll employment rose by 273,000 in February, and the unemployment rate remains at 3.5 percent. Over the past 12 months, average hourly earnings have increased by 3.0 percent.

The change in total nonfarm payroll employment for December was revised up by 37,000 from +147,000 to +184,000, and the change for January was revised up by 48,000 from +225,000 to +273,000. With these revisions, employment gains in December and January combined were 85,000 higher than previously reported. (link)

Additionally, from economic reports released yesterday, productivity increased 1.2 percent in the fourth quarter; and production output increased 2.4 percent while hours worked increased 1.2 percent.  This means the demand for goods and services continues to grow within the overall economy.

The demand is strong and production of goods and services is increasing in response to consumer demand.   Increases in productivity are another key metric.

Economic analysis can get weedy…. so a simple way to look at productivity is to think about baking bread in your kitchen.

If you were going to bake 4 loaves of bread it might take you 2 hrs start to finish. However, if you were going to bake 8 loaves of bread it would not take you twice as long because most of the tasks can be accomplished with simple increases in batch size, and only minor increases in labor time.  Your productivity measured in the last four loaves is higher.

Economic Productivity is measured much the same way, within what’s called a production probability equation.  Additionally, if two hours of your time are worth $40, each of four loaves of bread costs $10; but if you make 8 loaves in the same amount of time the labor cost is only $5/per loaf.

Increases in productivity means total business output increased significantly as more product was demanded from within the business operation.  Throughout the economy people just wanted more stuff.

Improved gains in efficiency/productivity (more bread needed) supports faster economic growth without generating higher inflation; no need to raise prices because your cost to make each loaf of bread decreases the more you make.  Higher sales and lower per unit cost means more profit for the bread-maker.  No need to raise prices.

Increases in productivity generally means the economy is generating more stuff.  The more stuff generated the higher the value of all economic activity; this increases GDP growth.

When we see higher productivity in direct alignment with GDP increases, the increased production indicates sustainable GDP growth.  This means Main Street USA is stable.

Wage growth leads to more consumer purchasing; that fuels increases in productivity and a demand for more labor, thus fueling the Main Street economic engine. Keep in mind, while all of this internal economic growth is happening the full impacts of the renegotiated trade deals have yet to kick in…. There will be more domestic manufacturing, more domestic investment and a demand for more workers; ie. more jobs and higher wages.

This entry was posted in Big Government, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

38 Responses to MAGAnomics – Stunning Job Gains in February +273,000, With Revised Gains of +85,000 Dec/Jan…

  1. Excellent numbers. Too bad the Dems will try to trash them.

    Liked by 1 person

  2. DJ Snyder says:

    Meanwhile the Dow Jones closes down another 200… multinationals are teh sadz 😛

    Liked by 1 person

  3. delighteddeplorable says:

    More winning! No ways tarred, nosiree. 💃🇺🇸

    Liked by 3 people

  4. vikingmom says:

    And THIS is the reason that the media is in 24/7 overdrive mode on “Coronavirus”! The economy is going gang-busters, the border is no longer a sieve, we are finally getting out of the never ending wars in the ME, and the only two contenders left for the Democrats are two old, rich white guys…one of whom is a Communist with zero actual accomplishments in his life and the other is a corrupt political hack with clear signs of dementia and more baggage than a Samsonite factory!!

    Liked by 16 people

    • Dennis Leonard says:

      Thumbs Up sir!!!

      Liked by 1 person

    • Deplore Able says:

      But Coronavirus is just another good reason to bring production back to the USA where it is safe from the types of instability (political, military, health) that affect other countries.

      Liked by 5 people

      • vikingmom says:

        Exactly!! And I hope that the President will make this point. Our vaccinations, our medical supplies, our testing equipment, etc should ALL be made in the USA so that in global incidents such as these, we can be fully self contained and stop the spread of diseases before they get here!

        I am so glad that the President took decisive action to halt flights from China, which the MSM/Democrats branded as “racist overkill”…until it turned out that he was RIGHT!

        And I really wonder WHO allowed the untested passengers from the cruise ship back into the country without the permission or knowledge of the White House! Was that a bureaucratic snafu or a deliberate attempt to allow the virus into the country so as to capitalize on the ensuing panic?

        I hate to sound like a conspiracy theorist but honestly, everything makes me suspicious these days. The Swamp is being drained and there are a LOT of very desperate people in DC!

        Liked by 7 people

    • railer says:

      Great post. You win CTH today!

      Liked by 1 person

  5. adamwestbeld says:

    Thank you president Trump! I’m one of those January numbers.

    This is finally a second chance at a career after graduating high school and college during the worst decade of the last hundred years. Never thought my first vote in a presidential election would pay off so much!

    Liked by 2 people

  6. scrap1ron says:

    Unfortunately, I live deep behind enemy lines in New York State. Our community is seeing the opposite of this economic boom. We are bleeding jobs and losing population, except for the illegal aliens Cuomo is importing. However, the better the rest of the country does, the more political pressure is placed on the State governments that are mismanaging us and missing out on this wonderful economic resurgence. Hammer them, Mr. President. Drive on!

    Liked by 1 person

  7. stripmallgrackle says:

    “Economic analysis can get weedy…”

    For those interested in what (some of) the weeds look like, here’s a textbook explanation:

    https://saylordotorg.github.io/text_international-trade-theory-and-policy/s05-04-the-ricardian-model-production.html

    Sometimes I can get a bit wonky in my spare time, especially if algebra (or even better, trig) is involved, just for the entertainment value of seeing a problem solved.

    Like

  8. calbear84 says:

    The MAGIC WAND must be working overtime!
    God Bless President Trump and his entire economic team of Wolverines!

    Liked by 2 people

  9. Grandma Covfefe says:

    Also President Trump mentioned today that more people are choosing to stay home and travel and spend money here in good ol’ USA, keeping money here.
    —————————————–
    At the signing of C-virus bill at WH today:
    “THE PRESIDENT: No, I think — I think, you know, a lot of people are staying here and they’re going to be doing their business here. They’re going to be traveling here. And they’ll be going to resorts here. And, you know, we have a great place. That’s where — so, foreign people come, but we’re going to have Americans staying home instead of going and spending the money in other countries. And maybe that’s one of the reasons the job numbers are so good. We’ve had a lot of travel inside the USA”

    Source:https://publicpool.kinja.com/subject-remarks-by-president-trump-at-signing-of-the-c-1842155970
    ——————————————–
    Is Pres Trump hinting we should do that this coming summer as well? That would help boost our economy more prior to election day.

    Liked by 4 people

  10. czecharthur says:

    Unfortunately in Las Vegas for example, people are already loosing work , because of all the cancellations caused by this panic, my husband and our friend lost all the work for rest of the March and April with more cancellations coming so we will have to dip into our savings to survive, but our friend has no savings which is the case of many people we know.

    Like

  11. cantcforest says:

    Beware the Deep State. These numbers have been very good, but the earlier numbers are being revised upward. Maybe. I have seen the numbers tinkered before, and I would not be surprised if the next set were a huge ‘disappointment’. If the virus hype is kept in play that long, it would be a home run for the doomsayers. Prepare to go all in with the DOW around 21000.
    No, I can’t see into the future, and I’m not predicting it. I’m just saying “Are you prepared for that?”

    Like

  12. Tseg says:

    I live in a Midwest city and travel on the roads a lot. For 20 years I’ve gauged the economy by the number of trucks and trains moving. its been a pretty good leading indicator. Today I was particularly stuck by the enormous amount of commercial freight moving with these 2 modes of transport. Something is going well for somebody.

    Liked by 1 person

  13. LafnH20 says:

    “We travelled abroad for our vacation but, All I have to show for it is this lousy Coronavirus. 😔
    /s

    Liked by 1 person

  14. Magabear says:

    So in a normal business environment the market would’ve rallied today, but I guess the market manipulators are still using hyped up coronavirus fears to manipulate the markets to their advantage. They probably keep this up for another week or so before resuming normal trading activities. That’s until the next hyped up crisis comes along.

    Liked by 2 people

    • lcsteel says:

      I picked up some Jet blue and Delta this morning at a dirt cheep price…super bargain.

      Like

    • DanJ1 says:

      The market doesn’t necessarily respond positively to lower unemployment and lots of new hires. This is because it puts upward pressure on wages which eats into profits. This isn’t a rule or a theory. It’s just a trend that isn’t consistent but does occur. You don’t see the usual flag waving though because March will be a different story.

      Like

  15. and when those med supply and pharma jobs move back we will have more jobs created.more winning and more security.

    Liked by 2 people

  16. I REMEMBER the Obama ‘initial’ numbers…which would always be revised DOWNWARD when the actual data came out.
    LOL … Barri, the boy pretender.

    Liked by 1 person

  17. rashomon says:

    PDJT reversed the 2018 Chinese acquisition of a U.S. software company citing security risks.
    Beijing Shiji Information Technology must unwind its 2018 acquisition of StayNTouch, a hotel property management software company…The order marked the third time Trump has blocked a foreign takeover of a U.S. company on national security grounds, and just the sixth time a U.S. president has done so in three decades.

    Picky president, isn’t he? Where were his predecessor when foreigners were taking our jobs and our companies?

    https://www.hospitalitynet.org/news/4097383.html

    Liked by 1 person

  18. lcsteel says:

    The best jobs program we could have would be deporting millions of illegal aliens.

    Liked by 4 people

  19. Elric VIII says:

    “Workin’ in the coal mine
    Goin’ down, down, down
    Workin’ in a coal mine
    Oops, about to slip down”

    Any job is better than no job. If every illegal alien was deported tomorrow we would have full employment. Then we could start letting in LEGAL immigrants with skills to support themselves and help to grow the economy.

    Liked by 1 person

    • DanJ1 says:

      There are already more jobs available in the U.S. than unemployed. This buffer will likely help us through the CV “crisis”. I like the coal miner reference. Reminds me of Creepy Uncle Joe saying that they can all be taught programming when he closes their mines. That’s a winning presidential platform position.

      Like

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