The Biden administration has been quick to tout the latest jobs report as evidence of a solid labor market, but a closer look reveals a different story. The labor market resembles Swiss cheese, with job growth being limited to foreigners in part-time positions in only a few areas of the country.
In the past year, only 15 percent of America’s metropolitan areas have seen any job growth, leaving the remaining 85 percent with stagnant payrolls. This isolated growth is concerning, especially when considering that even in the areas experiencing growth, it is primarily in part-time positions. In February alone, part-time jobs increased by 51,000, while full-time jobs saw a decrease of 187,000. This trend has led to a significant loss of 1.9 million full-time jobs in the past three months, the largest drop since the Global Financial Crisis.
Since June of last year, the economy has shed 1.8 million full-time jobs, replacing them with 1.7 million part-time positions. This shift has resulted in minimal progress, with full-time job numbers remaining relatively unchanged since March 2022. The increase in part-time jobs is largely attributed to individuals taking on multiple jobs, leading to double-counting in monthly payroll figures and creating a false impression of increased employment.
Furthermore, monthly job growth figures are often revised downward, casting doubt on the reliability of the reported data. A significant portion of the jobs added to payroll employment in February were jobs that were previously believed to exist, as previous months saw substantial negative adjustments. This discrepancy raises questions about the accuracy of the reported job growth figures.
The disparity between the two surveys used to calculate employment and unemployment rates has also raised concerns. While these surveys are typically correlated, recent data has shown a significant divergence, with one survey indicating employment levels similar to those in April of the previous year. This discrepancy further calls into question the true state of the labor market.
Despite the limited job growth in certain areas, the benefits are not being felt by native-born Americans. Employment for this demographic remains below pre-pandemic levels, with a net loss of 1 million jobs. In contrast, foreign-born employment has surpassed pre-pandemic levels by 3.3 million jobs. This disparity has contributed to widespread disapproval of the Biden administration’s economic policies, as native-born Americans continue to struggle to secure employment opportunities.
In conclusion, while the headlines may paint a rosy picture of job growth, a closer examination reveals a labor market riddled with inconsistencies and disparities. The devil is indeed in the details, and the current state of the labor market is far from solid. As the economy continues to navigate uncertain times, it is essential to scrutinize the underlying factors contributing to job growth and ensure that all segments of the population have equal access to employment opportunities.
