WATCH | Can Donald Trump create 25 million new jobs over the next ten years?
During his inaugural speech, President Donald Trump said, “We will bring back our jobs.” And to do that he has a plan: create 25 million new American jobs in the next decade.
But that's a lot of jobs, former President Bill Clinton oversaw the largest job creation of any recent president, helping generate 22.9 million new jobs. Clinton had the benefit of being in office during the tech boom.
So can Trump create 25 million new jobs?
Well, first you have to take stock of what he could do to increase hiring.
“Bang for your buck in terms of job creation would be infrastructure spending from the government," Greg Daco Chief US Economist, Oxford Economics who crunched the numbers on Trump's job plan told Circa.
"It would be tax cuts for businesses that would entice businesses to spend more, therefore, hire more, and tax cuts for households.”
But even if his efforts to increase hiring work, the question remains. Is it even possible to create that many jobs with unemployment rate at 4.8 percent -- just two-tenths of a percentage point under what’s considered full employment?
Well according to Daco, that "would be unseen from a historical perspective.”
You might create 10 million in an economy that is growing at a solid pace, but 25 million new jobs is going to be challenging.
Instead, Daco believes we should expect something more realistic. Especially because our workforce is aging-- meaning fewer people are able to work.
Job creation alone is not a complete measure of economic health. When assessing the strength of the economy, economists look at myriad data points.
“We shouldn’t focus so much on jobs per se but perhaps more so on wage growth," Daco said. "That should be the emphasis ensuring that households in the United States have strong enough income to spend at a faster pace.”
So 25 million new jobs might not be a promise Trump can keep, but it might not matter.