MI Responds: On the February Jobs Report
Former Chief Economist at the Department of Labor, Diana Furchtgott-Roth, reacts to the news jobs report.
On Friday, the Department of Labor released the jobs report for February. Manhattan Institute senior fellow Diana Furchtgott-Roth offered the below analysis on the numbers.
“Everyone can agree that February’s data were the best in years. The Labor Department reported in the household survey that the labor force expanded, resulting in an additional 340,000 people in the labor force, and driving the labor force participation rate up to 63 percent. An additional 447,000 people said that they were employed. Those who were working part-time for economic reasons — i.e. they could not find full-time jobs — declined, and those who were working part-time for non-economic reasons — i.e. they wanted to work part-time — rose. From its survey of firms, the Department reported that an additional 235,000 jobs were created, many in higher-paying sectors such as manufacturing, construction, and professional and business services. Jobs in low-paying retail declined. Average earnings rose by four percent, a solid gain.
These data reflect the increase in confidence in the economy that we have seen from other series, such as data on consumer confidence, retail sales, and the rising stock market. The public expects a roll-back in regulations and a new tax plan to result in higher earnings and more hiring. In order to fulfill these expectations, it is crucial that Congress come through with the promised tax plan. The Trump administration can reform regulations alone, but it cannot change tax laws. Let’s hope Senate Majority Leader McConnell’s statement that the tax plan cannot be done by August will be a wake-up call for the gears in Washington to get oiled and moving. Otherwise this growth will not be sustainable.”
Read more from Ms. Furchtgott-Roth here. For additional inquiries or to contact the scholar, please visit Economics21.
