Creating Jobs under Trump’s Policy: Priorities, Realities and Risks

The promises of D. Trump to return jobs to the American workers put the problems of employment in the focus of his economic policy. After the Trump’s first year in White house the job market feels nice with employment indicators growing and unemployment going down. The Tax Cuts and Jobs Act (2017) makes it more attractive to do business both for the American and foreign firms in the United States; and benefits those American companies that do their business at home. There is little doubt that lowering taxes, limiting regulation can reduce employer’s costs, and stronger economic growth would increase employment opportunities. However, this process cannot stop long run trends of globalization; technological, demographic influence on the labor force participation, jobs polarization. The US economy has long been moving away from mining and manufacturing industries towards service sectors with less median wage and lower access to employer’s benefits, to medical, pension and other programs. The paper focuses on job polarization with rising inequality between different groups of employees. The structure of employment in the US had sharply polarized over the past two decades by qualification, education; with expanding job opportunities, both for high-skill and low-skill occupations and decreasing opportunities for middle-skill workers. Meanwhile the tax cuts and regulation cuts are coming hand in hand with budget cuts for supporting education and training which could weaken the possibilities of low income persons to gain education and skills that the labor market values. So far, current administration’s policy may deliver impulse for more jobs, coming with economic growth, but eventually the social bad political polarization of America may become deeper after Trump’s presidency than before.

Keywords

US, employment, workplaces, inequality, globalization

Received

07.12.2018

Publication date

14.12.2018

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GOST	Lebedeva L. Creating Jobs under Trump’s Policy: Priorities, Realities and Risks // Mirovaia ekonomika i mezhdunarodnye otnosheniia – 2018. – V. 62. – Issue 11 C. 77-86 [Electronic resource]. URL: http://ras.jes.su/meimo/s013122270002972-0-1-en (circulation date: 09.09.2024). DOI: 10.20542/0131-2227-2018-62-11-77
MLA	Lebedeva, Liudmila F "Creating Jobs under Trump’s Policy: Priorities, Realities and Risks." Mirovaia ekonomika i mezhdunarodnye otnosheniia 62.11 (2018):77-86. DOI: 10.20542/0131-2227-2018-62-11-77
APA	Lebedeva L. (2018). Creating Jobs under Trump’s Policy: Priorities, Realities and Risks. Mirovaia ekonomika i mezhdunarodnye otnosheniia 62(11), pp.77-86 DOI: 10.20542/0131-2227-2018-62-11-77

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