America’s economy is currently not in as poor state as some of the commentators are suggesting. When one looks at numbers of hiring, wage increase, and consumer spending the situation is far from bleak. In fact hourly wages increased.
According to the government’s job report at the beginning of this month, employers in America are actually adding jobs. True, it’s at a lower pace (hiring at 130,000 jobs in August), but it is still happening. Unemployment figures remained stagnant (as for the last 3 months) at 3.7 percent. This is almost the lowest number for unemployment in 50 years. Plus, the longer the good unemployment rate continues, the better for employees as bosses may have to adjust how they work to ensure longer-term growth. In other words, they will have to provide better packages for workers and invest in training, equipment etc.
Average hourly wages increased by 11 cents last month which marked a 3.2 percent escalation from 2018 figures. Indeed, according to PNC chief economist Gus Faucher:
“With slower, but still-solid job gains and good wage growth, households will continue to spend. The U.S. economy should avoid recession.”
US consumerism is looking good also. The highest jump in consumer spending in five years was witnessed in the 2019 April-June quarter. July looked good as well.