There have been 201,000 jobs created, month-over-month, and, surprisingly, there was a gain in wage growth as well. The gain in wage growth, year-over-year, is 2.9% which is the best number we have had in years. That number is important because it means more people are working, saving, and investing which pushes the market up. It also shows that people are changing jobs because there’s such low unemployment. We see this trend internally in our planning process, as well. We help a lot of our clients deal with looking for new jobs and what to ask for in the process. We are seeing people getting raises and some looking at greener pastures. Locally and nationally this has been strong. The manufacturing number has been the best in 14 years and shows tax reform could be more important than trade talk.
USA Workforce Tax Credit Act
Businesses have been investing in capital and equipment at an almost record pace and being annualized at around 10% this year. This is before we have started the strategic planning season of the year which typically starts in September. Companies usually write certain purchases off on their taxes at the end of the year. We are annualizing that 10% number before we even make it to the end of the year, where it’s popular to do so. The other thing is that there are few trade jobs. Manufacturing could be even better if we could add more workers in that area. There is a U.S. house bill coming up called the USA Workforce Tax Credit Act. It has a lot of support by labor unions and it says you can get up to a maximum $250,000 tax credit if you directly invest in specific worker training programs which, in turn, could increase numbers all around.
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
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