IMMIGRATION CRACKDOWN: Trump to Sign Executive Order Suspending Work Visas to Protect American Jobs

WASHINGTON — Administration officials announced Monday that President Donald Trump will sign an executive order suspending the issuance of certain temporary worker visas through the end of 2020, in an effort to prioritize American workers and slow down immigration.

The order applies to H-1B visas, H-2B visas, H-4 visas, L-1 visas and certain J-1 visas, which relate to skilled and seasonal workers and spouses of H-1B visa holders.

The restrictions are set to remain in place for the rest of the calendar year and administration officials say they be extended beyond the end of the year.

The move comes in response to complaints that American born workers should be prioritized when it comes to jobs, especially in light of the economic downturn caused by the Coronavirus pandemic.

A senior administration official said the visa restrictions would free up more than half a million jobs for American workers. The order will also close loopholes that allow companies to outsource labor to foreign workers, the official said.

Two months ago the president signed an initial executive order which temporarily suspended the issuance of new green cards, citing the need to protect American jobs amid widespread unemployment caused by the Coronavirus outbreak.

“I think it’s going to make a lot of people very happy,” Trump said of the order Sunday during an interview with Fox News. “And it’s common sense, I mean, to be honest with you. It’s common sense.”

WHITE HOUSE: ‘Economy Firing on All Cylinders’

WHITE HOUSE

Council of Economic Advisers

July 30, 2018

The rate of growth of the economy, also known as Gross Domestic Product or GDP, is one of the most important indicators of the health of our country’s economy. Today’s news did not disappoint; over the past year (4 quarters), our average annual growth rate has been a healthy 2.8 percent.

Thus far in 2018, real GDP is on track for growth of 3.1 percent over the calendar year, which would be the first calendar year of growth over 3 percent since 2005. This is exactly in line with the Administration’s own forecast of 3.1 percent, and well above the Obama Administration’s forecast of 2.3 percent. It is also a growth rate many claimed was impossible.

To put this achievement in perspective, during the entire period from 2001-2016, the annualized rate of real GDP growth in the first half of the year averaged just 1.9 percent.

President Trump believed we could get away from the Obama-era theories of “secular stagnation” – being doomed to slow growth – by changing the policies that caused that sluggishness. The Tax Cuts and Jobs Act, deregulation, and other business-friendly Administration policies are making higher growth possible.

As a result, over the first 6 full quarters of the Trump Administration, growth has averaged 2.7 percent. In contrast, during the first 6 full quarters of Presidents Obama’s second term, growth averaged just 2.4 percent, when the economic expansion should have been in full swing and demographic pressures were less of a weight. Overall, during their respective 8 years in office, growth under Presidents Bush and Obama averaged just 1.8 and 1.9 percent, respectively.

With growth in 2016 still only 1.9 percent, the Obama Administration projected this “new normal” to continue. Instead, growth edged up to 2.5 percent in 2017, exactly in line the Trump Administration’s forecast, and surpassing the Obama Administration’s forecast of 2.4 percent.

Driving this acceleration is increased private business investment, thanks to the Tax Cuts and Jobs Act (TCJA) and deregulation, raising after-tax rates of return.

In the 6.5 years between the start of the recovery in 2009:Q3 and 2015, growth in real private nonresidential fixed investment (commercial real estate, tools, machinery, and factories) averaged 5.4 percent, and had slowed to just 1.8 percent in 2016. Since then, growth jumped to 6.3 percent in 2017, and over the first two quarters of 2018, grew at an annualized rate of 9.4 percent.

Since September 2017, growth of equipment investment was a robust 7.4 percent at an annual rate, thanks largely to TCJA’s allowance for full expensing of equipment investment retroactively to 2017:Q4. Meanwhile, business investment in structures and intellectual property has also surged—up 13.6 percent for structures and 11.1 percent for intellectual property, respectively, in the first half of 2018.

Planned capital expenditure indices from Morgan Stanley and Goldman Sachs have accordingly reached record or near-record highs. As of July 2018, CEA has tallied a total of over $217 billion in new corporate investment announcements directly attributed to TCJA.

Americans also have more to spend as a result of the strong economy. During the Obama recovery, people didn’t feel better off and they didn’t have much to show for their labor. In the 6.5 years between the start of the recovery in 2009 and 2015, growth in real disposable personal income – money people have to spend – averaged just 2.2 percent, and had slowed to 1.6 percent in 2016, over seven years after the recession had officially ended. Under President Trump, growth ticked up to 2.8 percent in 2017, and spiked to 3.5 percent in the first half of 2018.

People feel better about the economy right now. In May 2018, the National Federation of Independent Businesses (NFIB) Index of Small Business Optimism rose to 107.8, its second highest level in its 45-year history. Reports of compensation increases hit a 45-year record high, with views of expansion and reports of positive earnings trends also the highest in the survey’s history. Since December 2017, the Index has averaged an unprecedented 106.5, above its 45-year average of 98 and close to the all-time high of 108.0 in July 1983. In March 2018, consumer sentiment in the United States reached its highest level since January 2004, while for the first 5 months of 2018, consumer sentiment was the highest it has been since 2000.

Money is also coming back to the US, where it belongs. Thanks to our outmoded and perverse tax code of the past, American firms were essentially incentivized to offshore jobs to other countries and kept foreign investment away from our shores. But the Tax Cuts and Jobs Act brought reason back to the tax system, and we are seeing immediate results.

In the first quarter of 2018, U.S. companies brought home (repatriated) a record $306 billion, or $1.2 trillion at a seasonally adjusted annual rate. If the pace of repatriation continues through the remainder of 2018, it would generate an additional $98 to $189 billion in tax revenue for the Federal government, exceeding expectations.

It is good for the economy to have past corporate earnings working their way through U.S. capital markets from the repatriation as a result of the TCJA, with cash-rich firms distributing those earnings to shareholders for reinvestment in other firms that can productively use cash infusions.

Overall, the economy is strong as are the economic fundamentals: 3.7 million jobs have been created since Election Day 2016, and African American, Hispanic, and Asian unemployment rates have recently reached their lowest levels in recorded history. The women’s unemployment rate recently achieved a nearly 65-year low. Under President Trump the veterans’ unemployment rate has fallen to the lowest level in over 15 years. Meanwhile, consumer, business, and manufacturing confidence have recently reached multi-decade and even all-time highs. We look forward to continued prosperity for the American people.

WHITEHOUSELOGOUSETHISONE

TRUMP EFFECT: US JOB OPENINGS SURGE TO RECORD HIGHS, SAY REPORTS

WASHINGTON, D.C.– The U.S. labor market has hit a record high under the first six months of the Trump administration, according to a report by the labor department issued on Tuesday.

According to the July Job Openings and Labor Turnover Survey, or JOLTS, job vacancies rose by 461k, the most for a single month’s time in almost two years, to 6.16 million with a majority of the jobs in demand being in the health care and social assistance industry and for professional and business services. Further, in the per annum through June, the economy created a net 2.3 million jobs, representing 63.4 million new hires.

July figures released last week document also documented that payrolls increased more than forecast while the unemployment rate matched a 16-year low.

Indeed, as the surge of employers pleased with the incentives offered by the Trump administration again begin recruiting after years of hiring freezes, the danger shifts, say experts, from a slumping job market to too many jobs and not enough vacancies to fill them.

“Companies are running out of workers to hire to do the job or even train to do the work, and this is a ticking time bomb for economic growth,” Chris Rupkey, chief economist at MUFG in New York told Reuters (https://www.reuters.com/article/us-usa-economy-jobs-idUSKBN1AO1OP).

Coinciding with the JOLTS report, a July National Federation of Independent Business report showed showed job openings at a 16-year high. Economists excited over the latest trend say they have every reason to believe the surge in job creation to continue under the Trump administration.

“The JOLTS report continues what has been a reasonably strong run for the labor market data, and we expect continued improvement in the job market to keep upward pressure on wages,” Daniel Silver, an economist at JPMorgan in New York told Reuters.

Even critics of the Trump administration have come forward to praise the most recent job numbers.

“Kind of an all-around strong headline number,” said Tony Bedikian, head of global markets at Citizens Bank told MSNBC (https://www.cnbc.com/2017/08/04/us-nonfarm-payrolls-july-2017.html). “More people are coming into the labor force and finding jobs. It’s difficult to find anything really negative in the report.”

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‘THE TRUMP EFFECT’: JOB GROWTH IN MAY SURPASSES STOCK MARKET EXPECTATIONS

WASHINGTON, D.C. — President Donald Trump’s campaign promise to “make America great again” certainly seems to be one he’s keeping, at least when it comes to jobs.

According to the May National Jobs Report by ADP (http://adpemploymentreport.com/2017/May/NER/NER-May-2017.aspx), the private sector added 253,000 jobs last month, nearly Wall Street’s expectation of 185,000 jobs.

“Job growth is rip-roaring,” Mark Zandi, chief economist of Moody’s Analytics, said in a statement. “The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses’ number one challenge will be a shortage of labor.”

Service jobs led the way adding 205,000 new jobs, with professional and business services contributing 88,000 — its best month in about three years — and education and health services added 54,000 more.

To put the totals in context, it was the fourth time this year and the sixth time in the last seven months that the ADP count put total job creation above 200,000, a phenomenon that industry analysts have dubbed “the Trump effect”.

The stock market was quick to respond as the market pushed into record territory on Thursday in light of the report.

As reported by Marketwatch (http://www.marketwatch.com/story/us-stocks-on-track-to-edge-higher-rebounding-from-two-day-dip-2017-06-01), the S&P 500 index SPX, +0.56% gained 13 points, or 0.6%, to 2,425, trading near its intraday record of 2,426.08. The Dow Jones Industrial Average DJIA, +0.47% rose 112 points, or 0.5%, to 21,120, near its high of the session. The Nasdaq Composite Index COMP, +0.60% climbed 31 points, or 0.5%, to 6,229, hovering around its intraday all-time high of 6,233.42.

“I can’t predict the future but this is not a bad environment we are in. The Fed is going to raise rates but they are going to do it in a way to encourage growth. Earnings expectations are rising and the economy is rising,” John Manley, chief equity strategist at Wells Fargo Funds told the financial news agency.

The Bureau of Labor Statistics is expected to release its own report on job numbers this Friday. It’s numbers are expected to mirror those of the ADP report.

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