Over the past few months, the US economy continues its upward rate of growth, yet not without hiccups; these were caused by a series of events including the US-China trade war, workforce shortages, trade tensions and more. What’s more, a recent report indicates that these events caused a steep decline in the output of the overall US production efforts.
To put things into perspective, US-based production is now at the decade’s lowest, leading to understandable worry about the overall health of the US economy.
Apparently, an indicator of an economy’s health is the state of its workforce. In the case of the US, reports indicate that during November private employers hired the lowest number of workers within the last 6 months.
Consequently, these unfortunate events lead to tempered expectations in terms of economic performance during the fourth quarter. Regardless, economic indicators show that, at the moment, the US economy is not stalling, rather it’s growing at a considerably slower pace.
As some analysts suggest, economic growth has been largely affected by Trump’s “America First” policy. According to this strategy, the US employs a realist approach based on pragmatism, where it actively pursues its economic interest, in spite of worsening relations with other nations and private companies.
From a short-term perspective, the policy brought little to no benefit, yet some forecasters believe that it may lead to more abrupt economic growth in the long-run. Whether this will happen remains to be seen. After all, recently-implemented trade tariffs led to growing product prices, while also encouraging companies to stop exporting to the US.
Anyhow, it is currently important for the US to pursue federal policies meant to further stimulate the labor market. A declining workforce can have drastic consequences on a country’s economy.
Based on these aspects, the US economy is undergoing several changes, which will surely lead to interesting developments in the near future.