Jobs Surge Continues: College Grads Reap Bonanza

Recently, we learned that employers intend to hire 17% more college graduates than they did last year, with sizable jumps in salaries and signing bonuses.

Trudy Steinfeld is executive director of career development at New York University. She tells us that salaries "are up about 5% to 10% since last year, and companies are offering bigger signing bonuses -- up to $10,000."

With unemployment hovering between 4.4 and 4.6% over the last several months, the job market should remain tight, signaling the likelihood of further wage and benefit gains.

In fact December job creation initially reported to be 167,000 was revised upward to 206,000 while November initially reported to be 154,000, was revised upward to 196,000. Now January and February numbers have continued the trend as have wage gains.

Remember how often the mainstream media and John Kerry used the term jobless recovery.

Recently Senator Jim Webb followed the State of the Union address suggesting that average workers have gone backward since his college days.

I wonder if the senator is aware that 100 million workers are invested in the stock market, the great majority of whom are middle class. This would dwarf the number of middle class stockholders from his college days.

At the other end of wage and benefits is take home pay.

Examining for example a taxpayer with Adjusted Gross Income-AGI of $35,000, his/her Final Net Tax, going back to 2000, before each cut, was $2989. His/her Final Net Tax is now $1792, saving that taxpayer $1197 a year.

When Did This All Begin and Why?

It began almost at the moment taxes were cut. It was not just the cuts on individual rates, cutting the cost of capital played a very large part.

For 9 successive quarters prior to the cut in the capital gains rate, business investment was down, workers and businesses were making only sluggish gains.

Since bold tax cuts on individual rates and capital gains took place, we've had 14 successive quarters of increased capital investment.

Since those cuts, gains for workers and business, have been strong and steady.

Hopefully the average worker will shun the class warfare rhetoric of the anti business-anti profit crowd. Hopefully the average worker knows that a vote for lower taxes is a vote for his own, and the nation's, well-being.

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