The White House admitted this Monday that the employment creation data for the month of July was weaker than anticipated.
According to Kevin Hassett, the chief economic advisor to President Donald Trump, in an interview with CNBC, the figures fell short of expectations: “Yes, I believe that the employment numbers were lower than we expected,” Hassett stated, who, however, maintained a positive outlook on the economy's trajectory.
"The administration remains very optimistic about the economic future," the advisor added, pointing out that the labor data was collected before the implementation of the new tax law pushed by the Executive, which they hope will promote growth.
Official data shows that in July, around 73,000 new jobs were created, below the estimated 110,000 by analysts and also lower than those recorded in previous months. Additionally, the unemployment rate increased by one-tenth, reaching 4.2%.
Hassett pointed out that the revision of these figures could show a lower economic dynamism: “Undoubtedly, that job figure, if the revision turns out to be accurate, suggests that there is less momentum than we thought.”
The release of labor data last Friday generated immediate repercussions in the Government.
President Trump fired Erika McEntarfer, director of the Bureau of Labor Statistics (BLS), whom he accused of manipulating the results.
This Monday, the president reiterated his accusations through his account on Truth Social, where he also claimed, without providing evidence, that McEntarfer allegedly distorted figures during Joe Biden's administration to electorally benefit the "radical left Democrats."
"The major adjustment was made to cover up and level the false figures that were invented to make a significant Republican success seem less stellar. 'I will choose an exceptional replacement,' Trump stated in his message."
In March, the White House stated that the economy of the United States created 228,000 jobs, exceeding analysts' expectations who had forecasted an increase of nearly 100,000 positions.
The private sector would have been the main driver of growth, with an increase of 209,000 jobs. Areas such as retail, transportation and storage, and construction would have experienced significant increases, while employment in the federal government has declined due to massive cuts.
Despite the growth in job creation, the unemployment rate remained virtually unchanged, with a slight increase from 4.1% in February to 4.2% in March. This indicates that the growth in employment has not been sufficient to significantly reduce unemployment.
Frequently asked questions about employment data in the U.S. and the economic policy of the Trump Administration
Why does the White House consider the employment data for July to be disappointing?
The White House admitted that the employment data for July was weaker than expected, with only 73,000 new jobs created, far below the estimated 110,000. Kevin Hassett, economic advisor to President Trump, acknowledged that these figures indicate lesser economic dynamism. However, he maintains an optimistic outlook on the economic future, hoping that the new tax law will help stimulate growth.
What implications does Trump’s dismissal of Erika McEntarfer have?
President Trump dismissed Erika McEntarfer, director of the Bureau of Labor Statistics, accusing her of manipulating labor results to benefit the Democrats. This dismissal reflects the political tension and distrust in the presentation of economic data, in a context where Trump seeks to reinforce his narrative of economic success, despite the unfavorable figures.
How does Trump's immigration policy affect the U.S. economy?
Trump's immigration policy has had a negative impact on key sectors of the economy, such as agriculture and the hospitality industry, which heavily rely on immigrant labor. The lack of workers has resulted in significant economic losses and a potential contraction of the Gross Domestic Product. The administration, however, continues to defend its anti-immigrant stance as a political victory.
What are the consequences of job cuts in the public administration under Trump's government?
The job cuts in the public administration implemented by Trump are aimed at reducing government spending, but have drawn criticism for the loss of essential services. The Supreme Court has allowed these mass layoffs, which could negatively impact sensitive areas such as healthcare, food security, and environmental protection. The administration argues that these measures seek to increase government efficiency.
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