Headlines can be misleading. After reaching a historic low of 3.8 percent in May, unemployment in June increased slightly to 4 percent. And you know what? We are thrilled.
Confused? Here, this article helps explain why this is good news:
The unemployment rate rose to 4 percent last month, from 3.8 percent, which in many contexts would be reason to worry about a softening economy. But the details of this particular jump in the jobless rate actually imply good things for the economy.
The labor force rose by 601,000 people last month, driving the proportion of the civilian adult population that is either working or looking for work up by 0.2 percentage points, to 62.9 percent.
The unemployment rate rose because not all of the people looking for work found it immediately. That suggested they were ready and willing to fill the jobs that employers have kept creating at a healthy rate — an additional 213,000 positions in June alone.
When we rolled out our Better Way agenda two years ago, this is the type of good news we promised the American people. Thanks to historic tax reform and regulatory relief, our country is Better Off Now with a booming economy. Here’s how:
Unemployment is at its lowest in decades
3.7 million American jobs have been created since November 2016 — 1 million of those since the Tax Cuts and Jobs Act became law. In addition to unemployment numbers being at their lowest point in decades, job openings are at a record high — 213,000 jobs were added in June alone. And in June there were 6.7 million job openings, marking the second time since 2000 that there have been more job openings than those who are unemployed.
90% of Americans are seeing increased take-home pay
Thanks to a doubling of the standard deduction and lower tax rates, 90% of Americans saw bigger paychecks this year. Plus, more than 4 million Americans at 642 companies have seen raised wages, bonuses, and expanded retirement options. In fact, more than half of small businesses have plans to expand, boost hiring, or increase employee benefits.
Slashed burdensome and unnecessary red tape
In order to provide much needed relief for community financial institutions and hardworking Americans, the Economic Growth, Regulatory Relief, and Consumer Protection Act has been signed into law. In addition, 16 CRAs have been signed into law, overturning some of the worst regulations from the end of the Obama Administration and saving billions.
Economic confidence continues to rise
With more job opportunities and lower unemployment, consumer confidence is on the rise and Americans are finally having a chance to become full participants in our economy and achieve the American Dream.