248,000 New Jobs Created in May

The President.s Economic Policies Continue to Strengthen Job Growth Across the America Nearly One Million New Jobs Added in Last Three Months Alone

News: National Jobs Data

• New job figures and other recent indicators show that one year after the President's jobs and growth bill became law, the economy is strong and growing stronger and President Bush's economic policies are working.
• May's increase in employment remained strong and above market expectations. 248,000 new jobs were created in May . and the increases in April and March were revised upward 58,000 and 16,000 respectively, for a combined upward revision of 74,000 new jobs. T he economy has posted steady job gains for each of the last nine months -- with nearly one million new jobs in the last 3 months alone.
  • An average of over 257,000 jobs per month has been created since the beginning of this year.
  • The household survey shows a similar increase in jobs, up 1.5 million since August.
  • T he national unemployment rate stayed constant at 5.6% in May . down 0.7 percentage point from a peak of 6.3% in June 2003. At 5.6%, the unemployment rate is below the average of the 1970s, 1980s, and 1990s.
  • Employment over the last year was up in 44 of the 50 states and the unemployment rate was down in all regions and in 47 of the 50 states.
  • National manufacturing employment increased 32,000 in May, and was revised upward by 22,000 jobs for March and April. Manufacturing employment has risen for four consecutive months . The ISM Manufacturing survey shows similar strength in manufacturing employment, reaching a 30-year high in May.
  • Weekly unemployment insurance claims are near their lowest levels since 2000.

Background: President Bush's Actions are Helping to Drive Our Economic Recovery

• The President's Jobs and Growth tax relief package enacted a year ago helped drive the strong improvement in our economy. It raised the level of economic activity and productivity, which will result in higher incomes and living standards for American workers.
• America's economy experienced the unprecedented shock of a recession, economic disruption due to September 11 and the War on Terror, and the discovery of corporate accounting scandals that were years in the making. President Bush acted promptly to help America 's workers, putting more money in the pockets of America 's families and laying a foundation for growth and job creation now and for years to come.
  • The American economy grew at a strong annual pace of 4.4 percent during the first quarter of 2004 . well above the historical average, and continuing the strong growth seen over the previous two quarters. Economic growth over the last year has been the fastest in nearly 20 years, at a 5.0 percent annual rate that would double the real size of the economy in 14 years. The Blue Chip consensus of private forecasters expects 4.2 percent growth during the four quarters of 2004 compared to an average since 1960 of 3.3 percent.
  • America 's standard of living is on the rise. Real after-tax incomes are up by 11% since December 2000 . substantially better than those following the last recession. Since the President's 2001 and 2003 tax cuts, personal consumption levels have risen significantly.
    • Retail sales other than motor vehicles in the first quarter of 2004 increased 11.8 percent, more than double the average annual rate of growth over the last decade.
    • Consumer confidence is at its highest level in 4 months. The Conference Board's index of consumer confidence increased nearly 10 index points in the past 12 months, from 83.6 last May to 93.2 this May.
    • New housing construction in April remained at levels near those of December 2003, when they were at their highest in almost 20 years.
    • In the first quarter of 2004, the national homeownership rate reached a record high of 68.6 percent, beating the record set in the previous quarter.
    • Minority homeownership set a new quarterly record of 50.8 percent in the first quarter, up 0.2 percentage points from the fourth quarter and up 1.5 percentage point from the first quarter of 2003.
    • Inflation remains low by historical standards, with the core CPI (Consumer Price Index) rising only 1.8 percent and the core finished-goods PPI (Producer Price Index) rising 1.5 percent over the last 12 months.
    • Mortgage rates remain near historic lows, making homebuying easier and more affordable.

American companies are reporting historic levels of growth.

• Productivity grew from 2000 to 2003 at the fastest 3-year rate in more than 50 years. This has bolstered profits and will lead to significantly higher real wages for workers.
• More manufacturers have been reporting increased activity and new orders than at any time in the last 20 years.
• Since its low in mid 2002, the stock market is up about 40% and the NASDAQ is up almost 70%.
  
• The President's jobs and growth policies have put the economy on the road to recovery . but there is more work to be done. The President has outlined a six-point plan to create even more job opportunities for America 's workers and keep America the best place in the world to do business. The plan includes: enabling families and businesses to plan for the future with confidence by making tax reductions permanent; making health care costs more affordable and predictable; reducing the burden of lawsuits on our economy; ensuring an affordable, reliable energy supply; streamlining regulations and paperwork requirements; and opening new markets for American products and services.
• America has a choice: It can continue to grow the economy and create new jobs as the President's policies are doing; or it can raise taxes on American families and small businesses, hurting economic recovery and future job creation. A pro-growth agenda, strong education system, and help for American workers to gain the skills to secure good jobs are the right ways to respond to the challenges of our growing and changing economy.