The Labor Statistics of the United States has released its employment report of November. The report showed that about 1,55,000 new jobs have been created.
However, when the revisions of the months September and October are added to the above data, the numbers change to 1,43,000 which denote the net change.
This figure is less than the expectations which were between 1,80,000 to 2,00,000. The monthly average for the year 2018 have been 2,06,000.
According to Forbes, new jobs over 2,00,000 per month is great.
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But taking into consideration the rhetoric by the administration of president of the United States, Donald Trump who stated that the cuts in the tax will be spurring the growth of the GDP to up to 6 percent, it does not seems that the companies are hiring fast enough than what they would have done without the taxes.
One of the major challenges for the organizations is that of the huge gap between the skills people have and what is actually required for the open positions. And according to the Forbes, a tax cut fails to address this.
Forbes further stated that when the unemployment rate was already 4.1 percent and the loss of the revenue was already on the yearly deficit path of $1 trillion then passing a tax cut wasn’t the best decision.
The Forbes also reported that the GDP growth for the December quarter is apparently in the mid 2 percent area.
There could be an increase in the results of December as the trade as well as the expanded inventories are still trying to beat the effects of the tariff of 25 percent of the goods from China.
But according to Forbes this will only serve as a temporary benefit.
Source: Forbes, Washington Post
