While the January jobs report was certainly a positive sign and a “good way” for Barack Obama to end his presidency, businesses are really looking for President Donald Trump to complete his campaign vow of fewer regulations and lower corporate taxes before U.S. hiring can truly flourish, Peter Morici, economist at the University of Maryland, predicts to Newsmax TV.
“We’ve had several lean months and now we have a month that’s a little better. It’s not a trend, we’d have to see two or three months in a row. But it was encouraging,” he told Steve Malzberg on “America Talks Live!”
Morici spoke just after the government said U.S. employers stepped up hiring last month, adding a healthy 227,000 jobs, and more Americans began looking for work, a sign that Trump has inherited a robust job market, the Associated Press reported.
January’s job gain was the best since September and exceeded last year’s average monthly gain of 187,000, the Labor Department reported Friday.
The unemployment rate ticked up to a still-low 4.8 percent last month from 4.7 percent in December. But the rate rose for a mostly good reason: More Americans started looking for work, though not all of them immediately found jobs. The percentage of adults working or looking for jobs reached its highest level since September.
“I would not overestimate too much of the Trump effect here,” Morici cautioned. He said businesses are “waiting to see the tax cuts and the deregulation,” which Trump has long vowed.
“You start getting that and then they’ll respond. Employment is really kind of a long-term decision because it’s so hard to get rid of employees,” he said.
“There was a big lift in the private sector. There was a lift in manufacturing,” he said, optimistic the nation will see more jobs reports like this under Trump. full story