The latest jobs report from the Biden administration has raised concerns about the true state of the economy. What initially appeared to be a positive addition of 206,000 jobs turned out to be less than half of that figure, with troubling internal dynamics at play. The labor market also sent a warning sign with a perfect 50-year track record of predicting recessions.
One of the alarming aspects of the report is that more than half of the payrolls added in June were simply replacements for jobs that were previously thought to exist but were revised down in both May and April. This downward revision made June’s job growth appear weak and anemic.
Furthermore, a significant portion of the jobs added in June were in the government sector, nearing levels seen in Soviet employment composition. The ratio of private sector jobs to government jobs is unbalanced, as it takes many private sector jobs to support a single government worker who does not produce goods or services. This trend is unsustainable and raises concerns about the long-term viability of the job market.
The composition of new jobs is also troubling, with a large percentage being funded by taxpayer dollars through direct government hires and indirect hires in sectors like healthcare. This reliance on taxpayer funding for job creation raises questions about the overall health of the economy and the sustainability of job growth.
The shift from full-time to part-time jobs is another concerning trend highlighted in the report. The economy has seen a significant loss of full-time jobs over the past year, replaced by part-time positions. This shift is driven by economic necessity rather than choice, as people are forced to take on multiple part-time jobs to make ends meet.
The report also points out that the unemployment rate may be artificially low due to millions of Americans who have dropped out of the labor market and are not actively seeking employment. If these individuals were accounted for, the unemployment rate could be significantly higher, indicating a deeper recession than currently acknowledged.
Additionally, all net job growth over the past year has gone to foreign-born workers, while native-born Americans have experienced job losses. This disparity in job growth and earnings highlights the challenges faced by American workers in the current labor market.
As inflation rises and government spending increases, the risk of stagflation looms, potentially leading to more job losses in the future. The article concludes by suggesting that the American labor market has become a temporary agency for foreigners while creating a record number of government jobs, signaling a concerning trend for the future of the economy.
