This article is definitely music to President Trump’s ears. The Bureau of Labor Statistics, aka the BLS, reports that “U.S. employers added 1.4 million jobs last month and the unemployment rate fell to 8.4%.” This isn’t just a recovery. To use President Trump’s terminology, it’s a rocketship recovery. In a campaign speech in Latrobe, PA, he said it isn’t just a V-shaped recovery. It’s a super-V. At its worst, the unemployment rate hit 14.7%. In the 4 months since, that rate dropped to 13.3%, then to 11.1%, then to 10.2%. This month’s unemployment rate dropped to 8.4%.

Despite that major drop in the unemployment rate, ABCNews did its best to characterize the drop this way:

The “unemployment rate dropped slightly”? Seriously? As usual, Ed Morrissey nails it with this analysis:

All in all, it’s a fantastic report, especially given the predictions of collapse when the CARES Act expired. There may still be some need for targeted stimulus, but it’s become clear that we do not need broad-based helicopter cash to keep the economy on track now. What we need is broad-based support for getting the rest of America reopened.

Earlier this week, the ADP report predicted a much smaller increase in jobs:

Private payroll growth came in well below expectations for August, according to a report Wednesday from ADP, whose job tallies have differed widely from the government’s during the coronavirus pandemic. Companies added 428,000 jobs during the month, well below the 1.17 million estimate from economists surveyed by Dow Jones though a leap above the lackluster 212,000 that ADP measured for July.

They were only off by 1,000,000 jobs created. There’s nothing disappointing or lackluster about August’s jobs report. This article takes an optimistic view of things:

“We are still moving in the right direction and the pace of the jobs recovery seems to have picked up, but it still looks like it will take a while, and likely a vaccine, before we get back close to where we were at the beginning of this year,” said Tony Bedikian, head of global markets at Citizens Bank. “We continue to be optimistic that the economy has turned a corner and that we’ll continue to see steady progress.

This isn’t good news for the Biden campaign. It isn’t good news for Nancy Pelosi’s negotiations on another stimulus package. This says that targeted relief is more in order rather than tons of cash just dropped indiscriminately to everyone.

2 Responses to “Rocketship recovery continues”

  • eric z says:

    8.4 percent is one in every twelve seeking work not finding it. Big deal.

  • Gary Gross says:

    It’s a huge deal considering the fact that it was one-in-seven just 3 months ago. Further, durable goods orders are up and inventories need to be replenished. Add to those things that housing starts are on fire & you have the conditions that are ripe for a stronger-than-usual recovery.

    Compare that with the Obama-Biden recovery, which was the weakest recovery in US history.

Leave a Reply