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 June 2018 The Unemployment Rate Stood At 4.0%.1

  • As of June 2018, the United States now has the highest number of job openings ever recorded.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 June alone, the national economy added 213,000 jobs.5

 

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

  • “Hourly pay for nonsupervisors rose 2.8% in May from a year earlier, the best annual gain since mid-2009.”6

 

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 Q2 2018, The National Association of Manufacturers Outlook Survey reflected the highest level of confidence in the 20-year history of the survey, the fastest projected wage growth in 17 years, and projected employment growth and capital spending at all-time highs.10
  • In Q2 2018, the WF/Gallup Small Business Index remained at 106 points – close to “its highest level in more than a decade” – with “71 percent of [small] business owners [saying] their businesses had improved over the last year.”11
  • A Q2 2018 UBS poll reported that 63% of surveyed business owners remained optimistic about the short-term economic outlook, while 66% percent were optimistic about the long-term.12
    • 65% of respondents were confident about achieving their personal financial situation under the current economy, while 71% of respondents continued to be confident about future business prospects.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 – June 2018,” BLS, July 6, 2018

2“Job Openings And Labor Turnover – April 2018,” BLS, June 5, 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 – June 2018,” BLS, July 6, 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,” Q2 2018, June 20, 2018

11“Wells Fargo Small Business Survey: Hiring Remains Top Challenge,” Wells Fargo, May 1, 2018

12“UBS Investor Watch – Pulse 2Q18,” UBS, May 10, 2018

13“UBS Investor Watch – Pulse 2Q18,” UBS, May 10, 2018