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Trump lauds 298K jobs added in February, but economists are cautious

 

President Trump tweeted Wednesday morning that January and February were the “strongest consecutive months for hiring since mid-2015, citing a LinkedIn Workforce Report.

The chairman referred to the new monthly newsletter of the business-and employment-orientated social networking service began providing to members last month. This month’s Workforce Report is only the second ever.

That report underscored how the economy is strengthening under President Trump – and how companies hire in ever larger numbers.

On Wednesday, ADP also has the ADP National Employment Report, which showed that private payrolls grew by 298,000 jobs last month, more than expected by economists, who had initially projected a gain of 190,000 jobs.

LinkedIn Workforce Report: January and February were the strongest months for hiring since August, and September 2015

— Donald J. Trump (@realDonaldTrump) March 8, 2017

While the Bureau of Labor Statistics will not release its February numbers until the end of the week, the agency’s January report cited 227,000 non-farm payroll employment growth, with the majority of the job gains occurring in the retail, construction and financial activities.

Also on Tuesday, Gallup, the U.S. Economic Confidence Index showed that the Americans won or regained optimism. The Confidence Index rose to +16, marking the highest weekly average in Gallup’s nine-year trend.

But economists warn that while the yields are a positive, monthly job reports are often too “noisy” and tend to be “used.” They also said that the president might have less influence on the markets than people think.

“The government needs to be careful, because if you live by temporary numbers, you will die by temporary numbers,” Salim Furth, research fellow in macro economics at the Heritage Foundation, told Fox News. “Trump and the Republicans should not rest on their laurels before they can get things done.”

President Trump promised during his campaign to “bring jobs back” to the United States. And just two months into his administration, companies seem to get on board.

Just this week, Exxon Mobil pledged to spend $20 billion in 2022 to expand its presence along the U.S. Coast of the Gulf, which is expected to more than 45,000 jobs.

“This is exactly the nature of the investments, the economic development and employment, which will help Americans get back to work,” Trump said in a statement released by the White House on Monday. “Many of the products that are manufactured in the United States by American workers will be exported to other countries, improving our trade balance.”

Other companies which have committed substantial job creation since Trump won the elections are Amazon, who is planning to have 100,000 new jobs, SoftBank Group, IBM, Walmart, Sprint, OneWeb, Bayer/Mosanto, Intel and a host of other companies.

Furth wrote this extreme job growth to the “anticipation” of good policy.

“The policy, not the personality, and Trump is still not in office long enough to see real results in the slow-moving markets, such as the labour market,” Furth said. “There is an effect where a policy is having an impact before it is adopted by the anticipation — but I’m looking for a policy that have an impact, and go over the finish line-not only a glitter of the first 100 days.”

But Furth has said that he thinks that the media tend to “overplay” the impact of politics, the economy is “organic.”

“This is not only an Asset phenomenon, the number of jobs and this is a perennial plant,” Furth said. “It’s my job as an economist, to say, well, let’s not be too much.”

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