Tag Archives: U.S. Labor productivity

More Good Economic News

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On Thursday, CNBC posted an article about the October trade deficit.

The article reports:

  • The U.S. trade deficit six months into President Donald Trump’s tariffs tumbled to its lowest level since mid-2009, the Commerce Department reported Thursday.
  • The total was the lowest since the second quarter of 2009 as the U.S. was just coming out of the financial crisis and the Great Recession.

The U.S. trade deficit six months into President Donald Trump’s tariffs tumbled to its lowest level since mid-2009, the Commerce Department reported Thursday.

With exports rising and imports falling, the trade shortfall was just $29.4 billion for October, down 39% from the prior month. Exports increased 2.6% while imports slipped 3.2%.

The total was the lowest since the second quarter of 2009 as the U.S. was just coming out of the financial crisis and the Great Recession.

The numbers reflect the trade activity since Trump levied his “liberation day” tariffs in April 2025. Economists and policymakers worried that the levies would work against the U.S. by inviting retaliation and slowing the movement of goods and services around the world. However, Trump has backed off many of the most severe tariff threats he made, and the data shows a strong market for U.S. products.

To be sure, the year-to-date deficit still was 7.7% higher than the same period in 2024.

The article concludes:

“The latest figures suggest firms are successfully doing more with less labor, giving more credence to a jobless expansion,” said Matthew Martin, senior economist at Oxford Economics. “Productivity will be key to determining the economy’s speed limit and inflationary dynamics. If productivity growth continues to accelerate due to tax cuts, deregulation, and technological advancements, including AI, economic growth can pick up without causing unwanted inflation.”

Though hiring has been weak, the Labor Department reported Thursday that layoffs are holding low.

Initial unemployment claims for the week ended Jan. 3 totaled 208,000, pushing the four-week moving average to its lowest since April 27, 2024.

President Trump is a businessman. When our Founding Fathers formed our government, they did not want career politicians. As we have seen, career politicians talk about problems and corruption, but they don’t seem to do anything about them.

The Trump Economy Booms

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On Thursday, Breitbart posted an article about improved labor productivity in America.

The article reports:

U.S. labor productivity accelerated sharply in the third quarter of 2025, rising at a 4.9 percent annual rate as workers contributed more output per hour worked, the Bureau of Labor Statistics reported Thursday.

The figure substantially exceeded economist expectations of 3.6 percent and marked the strongest quarterly gain in two years. Combined with an upwardly revised 4.1 percent increase in the second quarter, the back-to-back performance suggests American businesses are adapting to tighter labor markets by investing in efficiency rather than pursuing the low-cost labor strategies that dominated much of the past two decades.

This is good news for American workers.

The article concludes:

The consecutive strong quarters in mid-2025 follow a weak first quarter when productivity fell 2.1 percent and unit labor costs surged 7.3 percent at the tail end of the Biden administration. That volatility is typical in quarterly data, but the trend over multiple quarters now points clearly toward sustained productivity acceleration.

The productivity gains carry significant implications for the economy’s inflation outlook. The Federal Reserve closely monitors unit labor costs as an indicator of wage-driven price pressures. With these costs now declining, the data removes a potential concern that could have complicated the Fed’s policy decisions.

The figures also suggest the economy may be capable of sustaining higher levels of output growth without generating inflation, since businesses are producing more from each hour of work rather than simply adding expensive labor inputs.

The government will release December employment data on Friday, providing additional insight into whether the labor market dynamics driving productivity gains are continuing into the final months of 2025.

Despite what the ‘experts’ are telling you in the mainstream media, President Trump’s economic policies are working. Not only are they working, they are helping average Americans who work for a living.

Senator Fetterman has pointed out that we should all be rooting for America to succeed, because when America succeeds, we all succeed.

To quote the prophet Jeremiah:

Jeremiah 29:7 7 Also, seek the peace and prosperity of the city to which I have carried you into exile. Pray to the LORD for it, because if it prospers, you too will prosper.”