May’s jobs report released Friday was really good, according to most people who keep track of the monthly reports. House Minority Leader Nancy Pelosi, however, is not happy and she wants her supporters to know. Friday she wrote a statement to supporters and expects them to not believe their own eyes.
“May’s jobs report shows that strong employment numbers mean little to the families hit with soaring new costs under the Republicans’ watch,” Pelosi wrote in a statement to supporters Friday.
“Democrats know that the American people deserve A Better Deal, with Better Jobs, Better Wages and a Better Future. We are committed to creating millions of new good-paying jobs and raising wages, lowering the soaring cost of living for families and giving every American the tools to succeed in the 21st Century economy,” Pelosi wrote. “Democrats will never stop fighting for the hard-working middle class families who are the backbone of our nation.”
Her latest slogan sounds just like what is already being accomplished by the Trump administration. Thanks to the Republican tax cuts, major tax code reform, and regulations being brought in check, the economy is on fire. Almost immediately upon President Trump signing the tax code reform bill that cut the corporate tax rate from 35% to 21%, companies large and small began announcing employee bonuses, wage increases, and increased hiring, too.
Costco is the latest company to announce some good news. The minimum wage for its employees will be increased to $14.00 per hour for entry-level positions. Other hourly workers will receive modest raises, too. The company directly credits the 2017 Republican legislation for the decision.
Costco announced Thursday it would raise its starting minimum wage to $14 an hour, an increase of $1 from its current $13 wage for entry-level positions.
Other hourly workers will receive raises between 25 and 50 cents, MarketWatchreports.
The wage hikes will take effect June 11, and company executives credited the 2017 Republican tax cuts for allowing the company to invest in its workforce.
Costco’s finance chief Richard Galanti estimated the annual cost of the wage increases to be between $110 million and $120 million.
Walmart was one of the corporations that raised wages in January. Wednesday, the company announced it will pay the cost of online college courses for its employees in hopes of recruiting and retaining more workers. That’s not exactly crumbs for someone trying to better himself through higher education.
The labor market is in need of workers, thanks to the strength of the economy. This means employers have to increase wages and be more creative with benefits and incentives. This is really good news for less educated workers, minorities, and the younger crowd.
In particular good news, the jobless rate continues to fall for workers with less than a high school diploma (5.4% from 6.2% a year ago) and black Americans (to 5.9% from 7.6%) as 208,000 blacks joined the labor force. Workers age 25 to 34 made up 1.04 million of the 2.58 million jobs added over the last year while those over 55 contributed 1.08 million. Job and wage growth may finally be inducing young people out of their parents’ basements.
All of this fits with the anecdotal news from employers who say they can’t find enough workers. Manufacturers have reported employing high-school students. In Maine where the unemployment rate has dipped to 2.7%—the lowest in more than 40 years—a temp agency has built a thriving business out of hiring and rehabilitating convicted felons who have served their time.
A Chick-fil-A in Sacramento this week said that it would increase worker pay to $17 per hour to reduce employee turnover. The Journal last week reported that a Colorado company is trying to lure more plumbers by offering craft beer, a putting green and “a lot of Zen.” We’d prefer cash, but we won’t judge millennials.
The consumer confidence level is at a 17 year high. The Real Clear Politics average approval rating for Trump’s handling of the economy, as of May 29 is 50.2%. I think Secretary of the Department of Labor Acosta summed it all up nicely Saturday in a tweet.
— Secretary Acosta (@SecretaryAcosta) June 2, 2018
Only a standard liberal politician like Nancy Pelosi would try to spin the economic recovery since Trump came into office in such a phony way. She desperately wants to return to being the Speaker of the House but I don’t think her lame new slogan is going to cut it. Let’s hope the crumbs continue to accumulate.