The Jobs Report Came Out Today

The jobs report came out today. The number I watch, and I am waiting to see change is the Workforce Participation Rate. That number is holding steady at 62.9. That is not a great number, but it is an okay number. That number reached 66 during some of early 2008, but has generally been in the 63 or 64 range most of the time since then. The other numbers on the report are really good.

CNS News is reporting the numbers today:

The Labor Department’s Bureau of Labor Statistics says a record 155,965,000 people were employed in July, the 11th record-breaker since President Trump took office 19 months ago.

“Our economy is soaring. Our jobs are booming. Factories are pouring back into our country, they coming from all over the world. We are defending our workers,” President Trump told a campaign rally in Pennsylvania on Thursday.

BLS said the economy added 157,000 jobs in July (compared with a revised 248,000 in June).

The unemployment rate edged down to 3.9 percent, as the number of employed people reached new heights, and the number of unemployed persons declined by 284,000 to 6,280,000 in July. 

Among the major worker groups, the unemployment rates for adult men (3.4 percent) and Whites (3.4 percent) declined in July. The jobless rates for adult women (3.7 percent), teenagers (13.1 percent), Blacks (6.6 percent), and Asians (3.1 percent), showed little or no change over the month. The unemployment rate for Hispanics hit a record low of 4.5 percent, down from last month’s record 4.6 percent.

There was also good news for wage-earners–in addition to the tax cut, hourly wages went up:

In July, average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents to $27.05. Over the year, average hourly earnings have increased by 71 cents, or 2.7 percent.

This growth is the direct result of the policies of President Trump–the combination of deregulation, tax cuts, and domestic energy development has resulted in economic growth.

 

Progressive vs. Practical

Hot Air posted a story today about a pizza place in Boston that has gone bankrupt. That in itself is probably not all that unique, but there are some special circumstances here.

The article reports:

In the Roxbury neighborhood of Boston back in 2015, the people at the nonprofit organization Haley House came up with a novel idea. They would open a pizza shop based on the principles of economic justice and fair wages to support the community. Named Dudley Dough, the shop would pay wages far above the minimum which many people in that industry earn, with added incentives for training and community development. It was an inspiring idea.

Unfortunately for them, only two years later the place is closing down. It turns out that operating a for-profit business on the principles of a nonprofit social justice operation results in an undesirable side-effect. They were literally not producing a profit.

One of the most difficult parts of starting and running a business is balancing the cost of doing business with the cost of the product. There has to be enough of a gap between those two things to earn the money to keep you in business. The people who started this pizzeria started it with a noble goal in mind. Unfortunately, they did not start it with sound business practices.

The article concludes:

Labor costs are a major driver in the business model of any such operation. Once you’ve accounted for the standard expenses of kitchen equipment, ingredients, utilities and the cost of your site (which are fairly standardized), labor costs may turn out to be the margin of error which makes or breaks you in terms of profitability and controlling your prices. Everyone in the neighborhood may love your social justice oriented, woke attitude, but if your pizza costs three bucks a slice when everyone else is selling them for two, you’re not going to last long.

Dudley Dough may prove to be a cautionary tale for everyone engaged in the debate over minimum wage rates and so-called “economic justice.” What they experienced was the sort of justice which the real world administers to the overly idealistic in a capitalist system.

It’s called reality.