Published: Mon, June 04, 2018
Markets | By Josh Butler

US employers keep on hiring despite growing trade concerns

US employers keep on hiring despite growing trade concerns

During an CNBC appearance on Friday, Larry Kudlow, director of the National Economic Council, downplayed a tweet in which President Trump broke with decades of precedent and appeared to violate federal law by disclosing information about the May jobs report more than an hour before it was publicly released.

The latest report showed the US economy added 223,000 jobs in May and reflected a 0.1 percent decline in the unemployment rate to 3.8, an 18-year low, further bolstering Trump's argument that his administration's work has greatly helped the economy.

The president's tweet at 7:21 a.m. read, "Looking forward to seeing the employment numbers at 8:30 this morning", previewing what turned out to be a report that exceeded economists' expectations.

The Trump administration is examining ways USA industries can hire more immigrant workers on a temporary basis, White House economic adviser Larry Kudlow said on Friday.

Though Trump's tweet suggested a strong jobs report, it may not have been the White House's first time giving clues on the numbers.

President Trump's enthusiastic tweet before the release of Friday's jobs report may have breached a rule created to safeguard and depoliticize market-moving financial data issued by the federal government.

"He chose to tweet, his tweet basically said like everybody else we await the job numbers".

It is not required for the president to see the jobs report number in advance.

"He didn't give any numbers".

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But investors weren't waiting for the official report.

Still, Jason Furman, a Harvard Kennedy School professor who served on former president Barack Obama's Council of Economic Advisers as its chairman, called Trump out. They said we don't make things in America anymore, because the Chinese will do it at slave labor rates.

Friday's report, which showed job growth that exceeded analyst forecasts and solid wage gains, caused the yield on the 10-year Treasury bond and the Dow Jones industrial average to jump after its formal release.

The rule further specifies that federal employees other than Labor Department staff charged with issuing the report can not publicly comment on the data for the first hour after the release time, let alone ahead of the report. "And if this tweet is conveying inside information about a particularly good jobs number you should never get them in advance from the Council of Economic Advisers again".

"About two-thirds of the drop in the unemployment rate in May was because workers found jobs, while about one-third of the drop was from people leaving the labor force", wrote EPi economist Elise Gould in a blog post.

President Donald Trump's top economics adviser acknowledged Sunday the trade dispute with USA allies could jeopardize the booming American economy but dismissed criticism of the administration's stance as overblown.

Those anxious that tariffs could backfire by killing U.S.jobs need to remember that nobody has been more effective in building up the poor than President Trump, according to his senior trade adviser.

Tony Fratto, a former Treasury and White House official in the George W. Bush administration, objected on Twitter to the assertion by former Obama administration economic official Austan Goolsbee that Trump had divulged classified information.

"Why not?" Kudlow said.

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