One of the most important questions which were bothering many economists was about unemployment and inflation. A recent report from the Bureau Of Labour Statistics shows that the US managed to add more than 160000 jobs in July. Many speculations were going on that because of Trump’s hefty taxes; the unemployment rate will increase. However, nothing like that has happened, and the US economy managed to give the right amount of employment. A few days ago, there was speculation going on that the US might go into recession and will create lots of unemployment problems.
However, it seems like Trump has managed to silence his critics by creating a good number of jobs. The trade war which was started by Trump administration a few months ago has taken a toll on the US economy. The report shows that those people who were searching for a job or got employed increased by more than 63 percent. The labor market has played a significant role in implementing trade war policies.
The unemployment rate stood at 3.7 percent for July, but some economists are worried about it. According to some economists, this data is from the last four weeks only. It doesn’t show the actual number of unemployed people who still don’t have any job. The US government has already put a 25% taxes on Chinese goods worth more than $250 billion. This decision which Trump administration took was based statistic revealed by the labor department. Most of the decisions during this trade war were taken after taking into consideration the effects of a trade war. Recently the Fed cut the rate of interest rates which were expected by investors on wall street. Now that decision of the Fed and Trump’s economic policies might add the right amount of employment this month also.