More Jobs and Bigger Paychecks

Following the passage of comprehensive tax reform, businesses across the country are hiring new workers, increasing wages, and issuing bonuses to their employees. The TCJA is contributing to an economic renewal in which Americans are benefitting from historically low levels of unemployment and historically high levels of job openings.

In November 2018, the Unemployment Rate Stood At a Historically Low 3.7%.1

  • In August 2018, the United States posted the highest number of job openings in history, at 7.3 million.2
    • There are now more jobs available than there are unemployed Americans. 2
      • “March [2018] marked the first time there has been a job opening for every unemployed person since the Labor Department began keeping track of job openings in 2000.”3
    • “For the first time since such record-keeping began in 2000, the number of available positions [has] exceeded the number of job seekers…”.4
  • In November alone, the national economy added 155,000 jobs.5


The CEA Estimates That Comprehensive Tax Reform Will Increase the Average Household Income By $4,000.

  • Hourly pay for nonsupervisors rose 3.2% in November from a year earlier, the best annual gain since mid-2009.


Business Optimism Has Hit Record Heights, With Job Creators Across America Expressing Confidence In The Future.

  • More than 500 companies have announced wage increases, bonuses, new hiring, or enhanced benefits affecting over 6 million employees.7
  • According to the National Federation of Independent Businesses (NFIB), tax reform is working, and the relief is driving record optimism about the economy among small and independent business owners.8
  • According to a tax reform impact study by Ernst and Young, 89% of surveyed executives plan to enhance worker compensation, while 75% reported that they were likely to expand American manufacturing, and 66% plan to “pass some of their tax savings on to consumers.”9
  • In the Q3 National Association of Manufacturers Outlook Survey, 92.5 percent of firms were positive about their company’s outlook, just below the all-time high of 95.1% set in Q2 2018. The survey reflects “optimism spurred by improvements in the global economy and, in particular, by pro-growth policies such as tax reform and regulatory relief.”10
  • In Q3 2018, the WF/Gallup Small Business Index achieved an all-time high of 118 points, “12 percentage points higher than last quarter and the highest level in the survey’s 15-year history.”11


Spurred By The TCJA, Business Investment In The United States In Increasing

  • Real private nonresidential fixed investment growth jumped to 6.3% in 2017, and has grown at an average annualized rate of 6.8 percent over the past year (since the third quarter of 2017).12
  • Over the past year, equipment investment has grown by 6.6 percent at an annual rate, business investment in structures has grown by 6.3%, and in intellectual property by 7.6%.13


Tax reform is helping to fuel wage increases and create more opportunities. As business owners’ optimism levels continue to rise, companies of all sizes are hiring more workers and expanding benefits for their employees.


1“The Employment Situation – November 2018,” Bureau of Labor Statistics, December 7, 2018

2“U.S. job openings fall from record high, but there are still more jobs available than unemployed Americans,” MarketWatch, November 6, 2018

3“The U.S. Now Has A Record 6.6 Million Job Openings,” The Washington Post, May 8, 2018

4“American Job Openings Now Outnumber The Jobless,” The Wall Street Journal, June 6, 2018

5“The Employment Situation – November 2018,” BLS, December 7, 2018

6“American Job Openings Now Outnumber The Jobless,” The Wall Street Journal, June 6, 2018

7See, e.g., “List of Tax Reform Good News,” ATR, June 19, 2018

8“Latest Tax Reform News,” NFIB, May 2018

9“EY Survey Finds Savings From US Tax Reform Spurs Reinvestment Through Research & Development And Mergers & Acquisitions,” Ernst & Young, March 13, 2018

10 “National Association of Manufacturers Outlook Survey,” Q3 2018, October 5, 2018

11“Wells Fargo Survey: Small business optimism hits record high amid strong economy,” Wells Fargo, August 7, 2018

12“Gross Domestic Product, Third Quarter 2018 (Third Estimate); Corporate Profits, Third Quarter 2018 (Revised Estimate),” Bureau of Labor Statistics, December 21, 2018