While job creation and unemployment rates improved more under Biden's presidency than Trump's, Trump excelled in wage growth and spending power.
Ahead of the U.S. Presidential election, here's a comparison between the current candidate and former U.S. President Donald Trump, and the current U.S. President Joe Biden, focusing on job creation, the unemployment rate, and wage growth. This report should help you understand the differences in their economic performances better.
According to a recent report by Forbes, the key aspects of the Donald Trump and Joe Biden's tenure have been highlighted.
Job Creation
During Joe Biden’s first 42 months in office, the U.S. added 15.8 million jobs, according to total nonfarm payrolls, the most commonly cited measure of employment covering most American workers. In contrast, Donald Trump’s presidency saw a contraction of 2.7 million jobs over his term. This difference is partly due to the COVID-19 pandemic's impact on the labor market, which hit during Trump’s tenure and skewed the numbers negatively.
Unemployment Rate
Under Trump, the unemployment rate rose by 1.7 percentage points from 4.7% to 6.4%. During Biden’s presidency, the unemployment rate has declined by 2.1 percentage points to 4.3%. It's important to note that Trump’s early years in office saw a decrease in unemployment to a historic low of 3.5% before the pandemic hit, causing a temporary spike in unemployment.
Wage Growth
Wage growth has been slightly higher under Biden, with average hourly earnings increasing by 17% compared to a 15% increase during Trump’s presidency. However, Trump’s wage growth had a more substantial impact as it outpaced inflation more effectively. From January 2017 to January 2021, the consumer price index rose by 8%, whereas it increased by 19% from January 2021 to July 2024 under Biden. Americans saved an average of 8.7% of their monthly paychecks under Trump compared to 5.9% under Biden, indicating stronger spending power during Trump’s term.
Economic Context
Despite the challenges faced by both administrations, the U.S. economy has shown resilience. The Gross Domestic Product (GDP), measuring the total value of all goods and services produced in the U.S., increased by 50% from 2015 to 2023. Both presidents have seen periods where the unemployment rate was lower than during Barack Obama’s presidency, except during the pandemic's peak.
This comparison provides a clearer picture of how each administration managed job creation, unemployment, and wage growth, offering insights into their economic policies' effectiveness.
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