You have to wonder about the information coming out of the White House. Predictions for job growth came in at 422,000 new jobs with an unemployment rate of 4.1%. The actual jobs number was just 199,000 but somehow the unemployment rate dropped to 3.9%. That does not make sense to me, how about you? The number of jobs created was under 50% yet the unemployment rate dropped to 3.9%. More than predicted.
The economy is already coughing and wheezing due to inflation and greatly reduced energy production needed many mores to be created, but that is something that will e difficult considering the incompetence of the Biden Administration. Already families have lost the salary gains made over the past three years and if inflation is any indicator a bad situation is about to get worse.
Inflation has not been this high in nearly forty years and despite what the Brandon administration says, there are no signs that it is about to end anytime soon. Between supply line problems and a near-record increase in costs to manufacturers, there is little reason to hope that inflation will end anytime soon. And the new jobs are mostly low-paying jobs in the leisure and hospitality industries.
Another curious fact is that even though the unemployment rate dropped drastically to 3.9%, the labor participation rate remained a low 61.9%, lower than the pre-pandemic rate of 63.4% we had under President Trump.
Overall, the U.S. labor market is short of 3.6 million jobs from the April 2020 peak, and it’s largely minorities feeling the squeeze of Bidenomics:
A more encompassing measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons slid to 7.3%, down 0.4 percentage point. Though the overall jobless rates fell, unemployment for Blacks spiked during the month, rising to 7.1% from 6.5%.
Wages were up an impressive 4.7% for 2021 as a whole, but not after taking inflation into account. Inflation ran at about 6.8% last year (December has yet to be calculated), meaning real wages are actually down two points.
In other words, if you got a 5% raise last year, congratulations: You’re only slightly poorer than you were before.
I read three major stories on today’s jobs report — from Business Insider, Reuters, and CNBC — and not one of them bothered to inform readers about the real toll inflation is taking.
Business Insider even went so far as to say that the report “hints we’re in an economic boom,” but again without factoring in the effects of inflation. Inflation feels good at first, as everyone enjoys the easy money. It’s only later that the hangover kicks in.
Of course, Team Biden will blame today’s lame jobs report on those evil Republicans (plus Joe Manchin and Kyrsten Sinema) who keep blocking the passage of Build Back Better.
But is a heavy dose of debt, regulation, entitlement, and inflation what this economy needs right now?