Low US jobless rate doesn't tell the whole story
Updated 07:11, 28-Nov-2019
CGTN
(AP Photo/Alan Diaz)

(AP Photo/Alan Diaz)

President Donald Trump has touted the U.S. economy as being the greatest it has ever been with an unemployment rate at record lows. 

But in many regions, the gap between rich and poor is also growing. 

CGTN's Dan Williams reports.

02:36

Wisconsin has an impressive manufacturing history from beer making to motorbikes. 

And the U.S. state will soon be home to another heavyweight company. 

A vast new manufacturing complex is being built for electronics maker Foxconn. 

Once completed, the company is promising to create some 13,000 jobs. 

"Years ago, we were a very large manufacturing community and that took a little dip and now with Foxconn coming here we are re-energized, manufacturing is coming back," Matt Montemurro, President & CEO Racine Area Manufacturers and Commerce said. 

Foxconn maintains their vision for this huge facility remains on track and says it will open for business next year. 

But critics continue to question just how many people the company will employ once the building has been completed. 

Even Wisconsin's governor has said the company may in the end only employ some 1500 people. 

But even if that is the case, Rob Ducoffe, from the nearby University of Wisconsin-Parkside, still sees the company's presence here as a game changer. 

"The students we serve often come from families where their parents didn't go to college, often come from families that aren't wealthy. It is probably fair to say that this enterprise and anything connected to it could actually change the trajectory of this region," Ducoffe said. 

Although the local unemployment rate is below four percent, income inequality continues to grow. 

It is a trend that is echoed across much of the United States. 

According to U.S. government data, the gap between rich and poor is now the largest it has been in 50 years. 

Steven Deller is an economist at the University of Wisconsin-Madison who said U.S. employment figures are somewhat deceptive. 

"Yes, they are employed. They are working but they are not working at their fullest potential. So once you get past that simple initial unemployment rate and get down to the details, there are warning signs that there are difficulties with the economy," Deller said. 

Although questions remain around Foxconn's eventual footprint here, locals hope it will still help the region develop into a high-tech hub and reverse a drain in talent. 

But nationally, the concern over income inequality will remain a key issue for whoever is in the White House, come 2020.