President Trump’s opponents may not like his philandering past and midnight tweets but on the economy, only cynics can argue with the results.
The economy accomplished 4.2 percent growth in the second quarter and appears headed for an overall score of 3 percent for the entire year. A tight job market is finally rewarding workers with better treatment from employers, and low wage workers are receiving bigger pay boosts.
That’s a lot better than the less than 2 percent average growth and stagnant living standards recorded by Presidents Bush and Obama.
The big challenge for Mr. Trump and the Republicans in Congress—should they hold on in the midterms—is sustaining the pace. With unemployment already at 3.9 percent, most economists are pessimistic about continued 3 percent growth in 2019 and beyond.
I take exception!
The labor market still has lots of excess capacity among young people stuck in low level jobs in restaurants and other service businesses. Many of those positions hardly require the skills of a college education or provide high school graduates with a decent career track.
Now, expanding sales opportunities and a tight labor market are forcing employers to get more realistic and practical when hiring for better paying positions. Recruiters are abandoning requirements for specific technical degrees and specialized job experience. That’s helping self-taught software engineers get placed at Intel and high school graduates land entry level managerial positions at Bank of America.
To keep growth in high gear, businesses have to follow through by adding to training budgets and the many private apprenticeship programs that the Department of Labor certifies and helps young folks identify. The latter are not just in traditional building trades but also in technology, manufacturing and business services. Many pay about $15 an hour during training and average starting salaries of $60,000 for those who successfully complete programs.
