Low-interest rates and an economy based mainly on services have helped reduce the level of unemployment in the United States. Today, unemployment in America is lower than in most European countries, and it will fall even more with the right policies. Food services and drinking places are hiring; they added 53,000 jobs the last month. There is also good news related to manufacturing, Mazda and Toyota will invest $1.6 billion. The Japanese companies plan to produce 300,000 vehicles per year. The US is creating jobs at a speed of more than 2 million per year; this is higher than the demographic growth of people in search of work.
For many years the Fed, Federal Reserve, has had a policy of low-interest rates, this fosters the economic growth of United States. The Fed is a key player that regulates the economy the right way.
Trump is happy with the results
The US President likes the statistics published about low unemployment and also the Japanese investment in America by Mazda and Toyota. These companies will create thousands of jobs that will benefit American workers. For many years the US manufacturing sector has been bleeding jobs. Donald Trump wants to make America great again; he wants companies to invest more in the United States. Many companies prefer to move production to countries with cheap labor costs. Thus, there are many imported goods in the US market.
Trump dislikes this, and he wants to reduce the trade gap that was more than $500 billion last year.
The Federal Reserve is key
The Fed regulates the interest rates, which can be reduced if the economy is too slow. After reducing the interest rates, the economic growth increases. Once that the economy grows, more people are working, and the average wage increases too.
This is also a factor of risk because workers have more purchasing power and there is an increase in the inflation rate, thus, in a certain moment, the Fed will cut the interest rate to avoid higher prices. The Fed has a vital role regulating the US economy.
Services have become a great employer
We can see that America no more depends on manufacturing, it has become a post-industrial society.
Services are the main sector of the economy, about 80% of the US Gross National Product. Services have become the greatest employer too; they can absorb many people that have lost their jobs in the industry. Many jobs in the manufacturing sector have been lost because of foreign competitors with cheap labor, but we have to add that the increase in productivity has been the main cause.
