donald trump makes good on a campaign pledge and pulls america out of a landmark dprae agreement to combat climate chamg. and u.s. companies say they cannot hire fast enough. why the pressure to fill jobs is doing nothing to increase your paycheck. welcome. i'm ali velshi. >> and i'm city stephanie ruhle. america's labor market is still adding jobs every month, just not at your local mall. >> from the impact of the paris climate agreement to where we start this week with the latest jobs report.

>> america's job market added 138,000 jobs in the month of may, which is lower than expected. the unemployment rate moved down slightly to just 4.3%. economists consider anything under 5% to be full employment when companies feel pressure to boost wages in order to attract and keep workers on their payrolls. yet average hourly pay for all americans have not gone up fast enough. at $26.22 an hour, wages have risen 2.5% in the last 12 months. ali, unemployment is down, conventional wisdom says wages should go up with that. it's just not happening. >> economists used to talk about 5% as full employment. if we're at full employment, which means 5% of people are not working because they don't want to be working, they're going back to school, something else is happening, why are wages going up as slowly as they are? people sometimes tweet us an say that number can't be true. but $26.22 is the average wage in america.

but it's only up 2.5% compared to last year. what people are hoping for is as we're sort of running out of workers in some markets across the country, those wages will start to go up and people will finally, finally see those raises they have been waiting years to come up with. >> you're talking about the country, but the globe is the issue. as long as companies can find people to fulfill those roles, get that work done at a lower price, ie overseas, then the pressure will not rise here to give those workers a higher wage. >> that's right. >> if you can fill that job in china and that worker there will do it for less, companies will continue to do that. >> obviously there are some jobs that you can't outsource to other places, generally service jobs -- >> i can't have a waitress in china. >> you can have computers making your food and driving your cars. it's important we have two things at play simultaneously. you have a movement taken across america to increase hourly

wages. you on the other hand have companies who for reasons of profitability want to keep the wages as low as possible. these are really sometimes at odds with each other. what we're really trying to get to is a world in which a company says profits can be good, your employees can be treated well, your customers can be treated well, the earth can be treated well. we're not there yet. >> companies aren't saying we're bad people trying to do bad things, it's who their stakeholders are. they're trying to be profitable and satisfy their shareholders, their board, their customers. we've got to get those workers' pay a bit higher. when you look at home prices, home prices continue to get higher in this country while wages aren't. that isn't a lining, adding to the frustration. >> people can't get into the homes they're trying to get into. in case you missed it, president trump quit the paris agreement on climate change that was signed by nearly 200 countries, all of them pledging to cut greenhouse gas emissions in total that are polluting the

earth's atmosphere. while the president says he cares deeply about the environment, he insists that the cost of the paris accord is just too steep for america to bear. listen. >> we'll be the cleanest. we're going to have the cleanest air, we're going to have the cleanest water, we will be environmentally friendly, but we're not going to put our businesses out of work and we're not going to lose our jobs. we're going to grow. we're going to grow rapidly. >> in a very long speech about this, the president left the door open to rejoining the paris accord in a way that he says is going to protect american jobs and american business. so for fact sake, why isn't corporate america on board with the president's decision? >> president trump claims the paris agreement on climate change is a disaster for u.s. business, but exxonmobil, the biggest oil company in the world with zero claim on being a friend to the environment is urging the president to stick

with paris. so is much of corporate america, including nearly 1100 companies that signed onto a statement to the president as well as fortune 500 giants like general motors, dow chemical and coca-cola. paris aims to keep global temperatures from increasing more than 2 degrees compared to pre-industrial times. that's really hard to achieve. humans would have to stop polluting the air at least 50 years to get anywhere near that goal. but corporate america says it can live with the paris framework because the emissions limits it says are voluntary. there's no mechanism in the paris accords that forces countries to comply. and on the surface, compliance could be costly. one study suggests the net cost of the u.s. millenial to reduce emissions could run as high as $4 trillion by the year 2050 but could also be lucrative. efforts will spur growth in

clean technology industries that favor american companies. now the president is jeopardizing that. and doing nothing to combat climate change is sure to be costly too. trillions of dollars in losses from increasing crop damage, rising floods and climate refugees. however, the paris agreement does spell yet further disaster for the coal industry. as far as fossil fuel emissions go, coal is the worst offender, but american coal was already burning out well before the u.s. signed off on paris. natural gas, while still dirty, is a cheaper and cleaner way to generate electricity. that's why the exxons of the world which are in the natural gas business think paris is a good deal for them. most of all, corporate america likes to know what the rules will be. it realizes dropping the paris agreement doesn't mean it won't come back in the future and next time compliance with emission targets may not be voluntary. so exxonmobil, rex tillerson, the secretary of state, used to be the ceo of exxonmobil, he's now come out and supported

pulling out of the climate deal as a policy frame work, but exxonmobil doesn't and he is believed to be one of those people who didn't want to pull out. it's interesting because president trump talked about it being about jobs, talked about it being about american business interests. there might be more to it than that. >> this is about partisanship 100%. this is president trump getting back to those campaign promises, playing to his base, because if you think about it, across the board businesses, you mentioned it, dow chemical, google, exxonmobil saying this will not create jobs. those clean energy, solar, wind, they have employed 500,000 people in 2016 and the coal industry was more like 160,000. the president is saying i want to bring jobs back and help the american worker. that's not what this does. what this does is say i promised you something, i'm going to get it. he has yet to tell you how he will actually deliver that. >> now, if you want to take a sophisticated, you know, side of the argument, there are -- there is a side that many people are on that says this is going to

take a concerted global effort to bring down carbon emissions and cool the earth down again or at least stop it from warming. there's another side that says american businesses don't want to be subject to world -- rules that are created by the global community. as you pointed out, and don't get crazy on us on twitter about this, one might be a libertarian and say i believe that the climate is -- the earth is warming and i believe we should do something about it, i just don't want to be subject to someone else's rules. >> completely fair point that you could make, exempt, of course, that in the paris agreement it's not binding. nothing is being forced. this is more about a global understanding and a global partnership. to step out and saying i'm going to go at it alone has really caused an enormous amount of pushback. one of the other reasons so many businesses are struggling, businesses just want consistency. what are the rules and we'll play within them. >> so you're building an electricity-generating plant, you can build a round or build a square but you know you're only

going to build one every 40 or 50 years so you would like rules to be the same. they're a little worried the next president will say we're back in the paris climate accord and i just built a plant. we're going to continue to cover this topic as it develops. >> you know the epipen, mylan, the big drug maker accused of ripping off families in need of their life-saving drug now stands accused of ripping off a federal government program meant to help the poor. the epipen maker overcharged medicaid $1.3 billion over a ten-year period according to senator charles grassley of iowa. it did so by classifying it as a medical expense as generic, when in reality it is a brand name product. this is just the latest example of how this specific drug company has pushed the envelope to go after profits. the difference here is that

they're now being accused of possibly defrauding american taxpayers. this is exactly the kind of thing that makes people so angry. >> and it should make everybody, including shareholders angry. you and i are business journalists, economic journalists, pro business, pro capitalism. we're not pro dishonesty. no shareholder and no board should be pro dishonesty. there's such a great path in america to making money the honest way. why do you need to be crooked about it to do it. i think this is a black eye on business when companies do this. >> after the issue they had, after the scandal about what they were charging for the epipens, you've got to look at executive compensation. we talk about this so much. >> this is incredible. >> the ceo of mylan labs, who by the way is the daughter of west virginia's -- >> senator joe manchin. >> senator joe manchin, a guy we talk to all the time on msnbc. heather bresch paid $18.9 million in 2016.

this is a drug that saves people's lives, kids lives. it's not just like oh, i want to have this in my home. you have it in schools, on school buses, in camps. >> the prior ceo was also paid great gones of money. this is why you and i talk about executive compensation. we're not against paying people well for what they do and what they do well. we pay people lots of money when they do a good job or not, whether they cheat people or not. >> good capitalism is what we're looking for. up next on "velshi & ruhle," we've all heard the president talk about saving coal, but the next industry in decline is losing jobs rapidly, and there is no place in sight where that's going to be recovered. no one knows how they're going to save them. >> you know we both like to talk to you guys on twitter. what percentage of your twitter followers do you think are fake? i bet it's a lot lower than donald trump's. >> only the mean ones. (vo) when i brought jake home,

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you and i have been talking about how the number of jobs continues to go up in most sectors but it's a different story in retail. since january alone, tens of thousands of jobs in that industry have disappeared. >> and now the latest round of stores announcing they are closing the doors include radio shack and fashion designer michael kors. so is this a sign that retail is dead or just in a funk? i went to find out. it's the $5 trillion industry that's become an american obsessi obsession, shopping. but at malls and brick and mortar stores across america, the parking lots are empty. once bustling with traffic, now ghost towns. so where are the shopping dollars going? today i'm in my home state of new jersey, checking out how retail across america is changing.

the headlines scream retail apocalypse. >> we expect more pain ahead for retail. >> it's not as if we didn't talk about the decline of the mall. >> investors waking up to a retail wreck. >> retail is dead makes for a great dramatic headline. >> it does. >> is it true? >> i don't think it's dead. >> retailers really need to think outside the box on how they want to appeal to consumers to get them back into the malls so they'll buy. >> what's driving them away? you guessed it, the e-commerce boom. >> do i not need to have the mall experience where i'm going through racks of clothes in the 50% off area? >> i think the discounts that online is offering outbeat the store and so consumers aren't shopping at the mall anymore. >> the ripple effect of a single anchor store closing can be devastating. when this macy's shut down in new jersey, 107 people were laid off. and while job creation is clearly a priority for president trump -- >> we are going to bring back your coal industry and your steel industry.

we're bringing it back. >> is his focus on the right industry? more than 100,000 retail workers have lost their jobs since october. that's more than the total of coal workers currently employed in the u.s. >> i'm stephanie. >> nice meeting you. >> smaller independent stores see the impact first. >> since you're without your anchor store in this balmall, it affecting your foot traffic? >> yes. general foot traffic it affected, especially losing macy's is not helping. >> she's not alone. mall growth has stalled in recent years. while 300 major department stores have vanished from neighborhoods across the country. the changing retail industry is creating opportunities for some. the winners include outlet malls and travel. americans spend more on experiences like dining. restaurants are seeing a boost. the cheesecake factory has seen sales increase 14% this year

alone. >> what i think retailers need to do is to provide some sort of entertainment for consumers when consumers want to shop in the store. >> i'm so glad you did story because you and i talk about it all the time. i want to give you some numbers to indicate what a massive shift this is. we've lost 6,000 retail jobs in may. that's the jobs report that just came out. 80,000 since the start of 2017. we lost some in the months before that. just to give you a perspective, there are about 16 million retail workers in the united states, but this, unlike certain industries, this is something that touches everybody across the country. there has never since the beginning of time when somebody first sold somebody something, there's never been this substantial a shift in this industry. >> and you've got to think about who those retail workers are. malls across america, every state, specifically in suburban america, who fills a lot of those jobs? senior citizens, students, part-time shift work. >> when we were kids, we went to the mall. >> we hung out at the mall. but a lot of those workers are

moms working around a kids' school schedule. when you see those jobs disappear, there's not another industry to absorb it. a huge, huge hit we're seeing. >> and it's important to understand that it's not clear it will become something else because we still buy as much as we've ever bought. in fact we're buying substantially more than we've ever bought and it's not requiring humans to sell it to us, in some cases to make it, pack it, ship it and deliver it to our front door. while we love technology and every time a new app and new e-commerce company comes onto the market, it soars because we support it. we're also losing jobs at the same time. >> we're buying, it's how we're buying. so the retailers, the challenge they have is what do they need to do to get people in the stores. to your point, you can buy the products online. i think of my kids. my kids want to go to the under armour store because they want to feel the products, they want to see pictures of cam newton and steph curry. for me i'm going, what, i've got to buy sneakers? i'll just buy them online.

so the challenge is how do stores deliver the experience. >> a lot of places that just sold online are starting to become experienced stores. you can try on the clothes, see it and then they order it for you online. >> whole new world. >> we'll stay on this and i think we'll talk about this an awful lot. we're going to take a break, though. coming up, the president said he wants to drain the swamp in washington. well, maybe he should start with his own white house. >> crazy rumors around a huge spike, by the way, in donald trump's followers on twitter. why the truth might be crazier than the rumors. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected.

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remember drain the swamp? i'm sure you do. this week the white house made public a partial list of ethics waivers allowing key staff members to do certain things that they otherwise wouldn't be able to do. included in that list, high profile senior staffers. chief of staff reince priebus,

presidential counselor, kellyanne conway, and chief strategist, steven bannon. but also, and this is what's interesting to us, also of interest, a few special assistants to the president brought on to shape administration's policies, including former lobbyist from the oil and gas financial and retirement industries, exactly what the president said he didn't want to do. why? because they are financially motivated. >> so everyone always thought that the reason these people are in here is because they have certain expertise and specialty, but they also benefited from it from the fact they have business interests. this president campaigned on the basis that that was going to stop. he's the one who talked about draining the swamp. and yet as we've pointed out, he seems to have brought a lot of people in from industry and bringing them in is one thing. actually giving them the waivers that exist to protect against conflicts of interest is kind of remarkable. >> the other remarkable thing is on one hand, it's all about

fulfilling campaign promises. on the other one, well, maybe we'll forget about those. >> no kidding. here's some strange news about the president's favorite mode of communication, twitter. this week there were rumors around about a strange spike in the number of followers. 5 million followers added in just three days. he's got a lot of followers so it could be possible. that figure has been disproved but the truth is almost as shocking. since january the president's account has gained a total of 10 million new followers. of those, more than 8 million appear to be fake. a recent audit of his account revealed that almost half of his total, 31 million followers, could in fact be fake accounts. now, if true, that would be a massive increase from an april 2016 audit that only flagged a mere 8% of his followers as fake. look, a lot of people have a lot of followers, and many of them -- we know that there are fake followers. but this is a huge proportion. >> a huge proportion. crowd sizes, you can take a photograph, count the amount of humans and see them.

but this, deceiving, interesting, shows what a dark and wild world that interweb is. i just have to share this one with you for a moment. don't roll your eyes. i want to share this. the gilded berken airbag covered in diamonds. this sucker sold for a record-setting $377,000 in an auction. now, these things are rare, hens the frenzy of intense bidding. but one fan took home this purse. i'm not putting this out there to say would you do it? think about all the frustrated americans we just spoke about -- >> but there's someone who can buy a $377,000 to buy a handbag. >> that does it for us. >> indeed it does. find it any time on twitter and facebook. for me find me monday to friday on msnbc live at 9:00 a.m. eastern. >> find me on twitter and facebook and monday through friday live on msnbc at 3:00

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