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Blue-Collar Workers Rebound Under Trump

- January 16, 2018

Trump Promised To Help Revitalize Industries Forgotten By Obama, And A Year After He Took Office, He Has Done Just That

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TOP TAKEAWAYS

  • During his campaign, Donald Trump pledged to revitalize industries like coal mining and manufacturing that have been hit hard by job losses, and a little under a year since President Trump took office, both of these industries have rebounded.
  • The U.S. manufacturing industry posted a net gain of 196,000 jobs in 2017 compared to 2016, which saw a net loss of 16,000 manufacturing jobs.
    • As of December 2017, there was 12.5 million manufacturing jobs in the United States, the highest since February 2009.
    • During President Trump's first year in office, American factories added jobs at the fastest pace in three years.
    • Together, the manufacturing and construction industries added a combined 406,000 jobs in 2017.
  • Coal production is up 12 percent since President Trump took office, marking an industry rebound after years of layoffs.
  • Under the Trump Administration, the overall environment for manufacturers is more business friendly, and the business community's optimism about the economy stems from President Trump's election and regulatory rollback.
  • On top of the growth that has already occurred, President Trump has made increasing the number of apprenticeships associated with blue-collar industries like construction a top priority, a move aimed at ensuring a bright future and sustained growth.

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TRUMP'S PROMISE TO REVITALIZE THE COAL AND MANUFACTURING INDUSTRIES

On The Campaign Trail, Donald Trump Pledged To Bring Back Jobs To Industries That Needed Revitalization

On The Campaign Trail, Donald Trump Promised To Revitalize The Coal And Manufacturing Industries. "Two industries that President Donald Trump repeatedly vowed to revitalize during his campaign, coal mining and manufacturing, saw employment gains in the February jobs report." (Alana Abramson, "Manufacturers Say They're Already Seeing A 'Trump Bump.' But It's Not That Simple," Time , 3/10/17)

During His Campaign, Donald Trump Talked At Length About Specific Industries Impacted By Government Regulation Like Manufacturing And Coal Mining, Those Industries Have Both Added Jobs In 2017. "And more to the point, those are just the overall numbers. In his campaign for the White House, Trump talked about jobs in specific industries that had been impacted by trade, regulation, and automation, jobs like those in manufacturing and coal mining. And in Trump's first year in office, those industries also added jobs." (Dante Chinni, "Bright Spot For Trump In 2017, Job Creation Faces New Challenges," NBC News , 1/7/18)

Donald Trump "Repeatedly" Promised On The Campaign Trail He Would "Revive The Coal Industry." "President-elect Donald Trump promised repeatedly throughout his campaign that he would revive the coal industry, billing himself as the 'last shot for the miners.' And in traditional mining areas-think parts of West Virginia, Kentucky and Pennsylvania-Trump defeated rival Hillary Clinton by large margins." (Justin Worland, "Donald Trump Says He'll Bring Back Coal. Here's Why He Can't," Time , 11/14/16)

At A Campaign Stop In Pennsylvania, Trump Promised To Stop Other Countries From Taking Jobs From American Workers. DONALD TRUMP: "Erie has lost a lot, right?' Trump said. 'Hang in, don't leave. I promise we can fix it so fast. We will stop these countries from taking our jobs. We will stop these countries from taking our companies.'" (Donald Trump, Remarks At A Campaign Rally , Erie, PA, 8/12/16)

PRESIDENT TRUMP'S PRO-BUSINESS POLICIES HAVE LED TO STRONG GROWTH IN THE MANUFACTURING INDUSTRY AND THE U.S. ECONOMY

The U.S. Economy Has Been Strong In The First Year Of The Trump Administration

During The First Year Of The Trump Presidency, The Economy Added Jobs And The Unemployment Rate Fell. "President Donald Trump can point to at least one important success: the number of jobs grew and the unemployment rate fell in 2017. Friday's government jobs report showed 148,000 new jobs created and the unemployment still at a 17-year low of 4.1 percent." (Dante Chinni, "Bright Spot For Trump In 2017, Job Creation Faces New Challenges," NBC News , 1/7/18)

Nonfarm Payroll Has Increased By 1,839,000 Since President Trump Took Office . ( Bureau Of Labor Statistics , Accessed 12/8/17)

U.S. Unemployment Is At Its Lowest Point Since 2000. "With U.S. unemployment at the lowest since 2000 and the stock market reaching records, several widely followed measures of Americans' sentiment are at or near the highest they've been since before the last recession." (Scott Lanman, "Trump Tweets Consumer Confidence Is At Record High, But It's Not," Bloomberg , 12/12/17)

The Consumer Comfort Index Averaged 50 In 2017, The Highest Yearly Average Since 2001. "Comfort measure averaged 50.0 in 2017, up from 43.6 a year earlier and the best reading since 51.8 in 2001." (Jordan Yadoo, "Consumer Comfort In U.S. Advanced In 2017 To A 16-Year High," Bloomberg , 1/4/18)

The Manufacturing And Construction Industries Improved Significantly In 2017

Since President Trump Took Office, The U.S. Has Gained 184,000 Manufacturing Jobs. ( Bureau Of Labor Statistics , Accessed 12/8/17)

During President Trump's First Year In Office, American Factories Added Jobs At The Fastest Pace In Three Years. "In President Trump's first year in office, American factories are adding jobs at the fastest pace since 2014." (Patrick Gillespie, "Is Trump Keeping His Promises On Manufacturing?," CNN , 12/4/17)

According To The Department Of Labor, Between December 2016 And December 2017, The Manufacturing Industry Added 196,000 Jobs. "Manufacturing jobs grew by about 196,000 between from December 2016 to December 2017, an increase of about 1.6 percent overall, according to the Bureau of Labor Statistics." (Dante Chinni, "Bright Spot For Trump In 2017, Job Creation Faces New Challenges," NBC News , 1/7/18)

  • In 2016, The Manufacturing Industry Had A Net Loss Of 16,000 Manufacturing Jobs. "The employment figures released on Jan. 5 showed an increase of 25,000 manufacturing jobs in December. That resulted, as we said, in a net gain for the year of 196,000 jobs. That was much better than in 2016, when the economy lost 16,000 manufacturing jobs." (Eugene Kiely, "Manufacturing Jobs 'Roaring Back'?," FactCheck.Com , 1/10/18)
  • As Of December 2017 There Was 12.5 Million Manufacturing Jobs In The United States, The Highest Since February 2009. ( Bureau Of Labor Statistics , Accessed 12/8/17)

  • Together, The Manufacturing And Construction Industries Added A Combined 406,000 Jobs In 2017. "Construction and manufacturing combined added 406,000 jobs for all of last year." (Paul R. La Monica, "Blue-Collar Jobs Are Booming In America," CNN , 1/5/18)

The Purchasing Managers Index, Which Is Based On Surveys Of Manufacturing Firms, Indicated That Manufacturing Was A Growing Sector Of The Economy For All Of 2017. " As support for the vice president's claim about manufacturing 'roaring back,' the White House cited 'the overall increase' in the Purchasing Managers' Index, or PMI, which is based on surveys of manufacturing firms by the Institute for Supply Management. The ISM's PMI was 59.7 percent for the manufacturing sector in December. ISM says anything above 50 percent indicates a growing sector, and the figure has been above that level for 16 consecutive months." (Eugene Kiely, "Manufacturing Jobs 'Roaring Back'?," FactCheck.Com , 1/10/18)

  • The U.S. Price Managers Index Grew To 59.7 Percent In December 2017. "The December PMI registered 59.7 percent, an increase of 1.5 percentage points from the November reading of 58.2 percent" (Timothy R. Fiore, "December 2017 Manufacturing ISM Report On Business," Institute For Supply Management , 1/3/18)
  • The U.S. Price Managers Index Was 56 Percent In January 2017. "The January PMI registered 56 percent, an increase of 1.5 percentage points from the seasonally adjusted December reading of 54.5 percent." (Bradly J Holcomb, "January 2017 Manufacturing ISM Report On Business," Institute For Supply Management , 2/1/17)

William Strauss, A Manufacturing Economist At The Federal Reserve Bank Of Chicago, Stated That The Manufacturing Sector Has "Absolutely" Improved In The Last Year. "American manufacturing has picked up pace over the last 12 months thanks to steady global economic growth, a rise in energy and other commodity prices, and increased business confidence. Although progress isn't being felt by all industries, makers of items ranging from bulldozers to semiconductors to food products are on the upswing as various measures of spending, sentiment and employment have climbed, while stock markets have hit record highs. The sector 'absolutely has improved relative to where we were a year ago,' said William Strauss, a manufacturing economist at the Federal Reserve Bank of Chicago." (Andrew Tangel and Josh Zumbrun, "U.S. Manufacturing Rides Rising Tide, Buoyed by Global Growth, Optimism," The Wall Street Journal , 11/14/17)

The Manufacturing Sector Has Benefited From A Pro-Business Regulatory Climate Under The Trump Administration

President Trump Has Saved Businesses $8.1 Billion In Regulatory Costs, Drawing Praise From The Business Community . "His efforts - his staff said that the rules already rolled back had saved $8.1 billion in regulatory costs over their lifetime, or a total of an estimated $570 million a year - have brought cheers from the business community, most notably from companies that will benefit from the rollbacks." (Eric Lipton and Danielle Ivory, "Trump Says His Regulatory Rollback Already Is The 'Most Far-Reaching,'" The New York Times , 12/14/17)

  • Economic Indicators Show That The Shift In Regulatory Policy Is Accelerating Economic Growth . "Still, several economic indicators - and comments from companies large and small - suggest that a shift in federal regulatory policy is building business confidence and accelerating economic growth, developments Mr. Trump certainly took credit for on Thursday." (Eric Lipton and Danielle Ivory, "Trump Says His Regulatory Rollback Already Is The 'Most Far-Reaching,'" The New York Times , 12/14/17)

The Environment Is More Friendly For Manufacturers Under The Trump Administration, Optimism Stems From President Trump's Election And Subsequent Regulatory Rollback. "'The overall environment is more business-friendly and we think that has created some business confidence,' Caterpillar finance chief Brad Halverson said in an interview. Part of the optimism stemmed from the election of a businessman as president last November and Mr. Trump's promise of reduced taxes and fewer regulations." (Andrew Tangel and Josh Zumbrun, "U.S. Manufacturing Rides Rising Tide, Buoyed By Global Growth, Optimism," The Wall Street Journal , 11/14/17)

COAL HAS MADE A COMEBACK IN 2017

The Coal Industry Had An Impressive Turnaround In 2017, Thanks To President Trump's Regulatory Rollbacks

U.S. Coal Production Increased By 44.6 Million Short Tons From 2016 To 2017. ("Short-Term Energy Outlook," U.S. Energy Information Administration , Accessed 1/16/18)

President Trump Is Ending The War On Coal By Rolling Back Regulations And Lifting Coal-Leasing Restrictions. "President Trump is doubling down on his promise to end the 'war on coal.' One day after Trump signed an executive order rolling back a handful of Obama-era climate regulations, the administration announced it is lifting coal-leasing restrictions." (Tim Devaney and Lydia Wheeler, "Overnight Regulation: Trump Administration Lifts Obama Freeze On Federal Coal Mining," The Hill , 3/29/17)

  • The Coal Leasing Moratorium Was "Among The Most Egregious" Actions Against Coal By The Obama Administration And Ending The Ban Will Help Miners In Western States. "For industry supporters, the coal moratorium was among the most egregious examples of Obama administration overreach. The Interior Department, then led by Sally Jewell, paused the sale of new coal leases on federal land in 2016 and launched a review of the coal program. Lifting the moratorium, industry supporters say, will help miners in Western states where there are large tracts of recoverable coal on public land." (Tim Devaney and Lydia Wheeler, "Overnight Regulation: Trump Administration Lifts Obama Freeze On Federal Coal Mining," The Hill , 3/29/17)

The Coal Industry Has Rebounded After Years Of Layoffs And New Mines In Wyoming, Alabama, Pennsylvania, And West Virginia Are Set To Open In The "Next Few" Years. "In other words, the industry has rebounded slightly after years of layoffs and closures caused mainly by competition from cheap natural gas. And a handful of new mines in Wyoming, Alabama, Pennsylvania and West Virginia are either opening or slated to open in the next few years." (Reid Frazier, "FACT CHECK: Is President Trump Correct That Coal Mines Are Opening?,' NPR , 6/2/17)

James Stevenson, Director Of The Coal Team At IHS Markit, Stated "We Really Saw The Bottom Of The U.S. Coal Market In Early 2016. Since Then, The Industry Has Picked Up ." "James Stevenson, director of the coal team at IHS Markit, says the metallurgical coal boom has helped the coal industry rebound. The rest of the coal industry has also benefited from higher natural gas prices. 'I think that the broad-brush characteristic is that things have really improved from the bottom,' Stevenson says. 'We really saw the bottom of the U.S. coal market in early 2016.' Since then, the industry has picked up a bit. Several large coal companies have begun to emerge from bankruptcy, buoying the industry." (Reid Frazier, "FACT CHECK: Is President Trump Correct That Coal Mines Are Opening?,' NPR , 6/2/17)

President Trump Has Placed An Increased Focus On Apprenticeships, A Move Which Will Help Workers Train For Skilled Positions In Blue Collar Fields

Apprenticeships Are Largely Associated With Construction Trades And Labor Unions. "Today, American apprenticeships remain largely associated with the construction trades and labor unions, where they had their roots in a Depression-era labor shortage that led Congress to pass formalized standards and empowered the Labor Department to certify training." (Jeffery J. Selingo, Why Are Apprenticeships A Good Idea That Have Never Really Taken Off In The U.S.?," The Washington Post , 12/22/17)

President Trump Signed An Executive Order To "Substantially Increase Apprenticeships In The United States." "When President Trump signed an executive order earlier this year to substantially increase apprenticeships in the United States, he joined a line of recent presidents who have tried to reimagine job training as something that happens on the job instead of mostly in a classroom." (Jeffery J. Selingo, Why Are Apprenticeships A Good Idea That Have Never Really Taken Off In The U.S.?," The Washington Post , 12/22/17)

President Trump's "Top Priority" For Labor In 2018 Is To "Streamline And Expand The Nation's Apprenticeship System," By Awarding New Grants Through The Department Of Labor. "The Employment and Training Administration is rarely showered with national publicity, but the agency will spend 2018 implementing the White House's top priority for the Labor Department. The ETA is tasked with carrying out the president's mandate to streamline and expand the nation's apprenticeship system. Although President Donald Trump hasn't announced a nominee to serve as the ETA's top official, Labor Secretary Alexander Acosta has seized the leadership torch on apprenticeship in public remarks and by awarding new grants." (Ben Penn, "Outlook 2018: Job Training Agency Owns Trump Apprenticeship Push," Bloomberg , 12/28/17)


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