Tag Archives: July jobs report

The Numbers Behind The Numbers

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On Friday, WND posted an article about the jobs report that came out last week. The numbers behind the numbers are not a cause for celebration.

The article notes:

Reality, however, came from a commentary at Twitchy, which said, “Fox Business Network’s Charles Payne broke down the ‘528,000 jobs added in July’ and let’s just say this particular perspective will not earn a Ron Klain retweet.”

Below is a portion of that Tweet:

The article reports:

Economic analyst Charles Payne is warning that the jobs report that the government released early Friday doesn’t say exactly what Joe Biden apparently wants it to say.

That’s because of the “new jobs” created, 384,000 of them are part-time.

The article concludes:

Because of Biden’s policies, gasoline in America has surged well past the $5 a gallon mark, about double what it was when he took office. The prices have declined somewhat in recent weeks, but it still remains at highs not seen before.

On top of that, Americans are facing inflation of 9.1%, costing the average family thousands of dollars a year more to have the same lifestyle of just last year.

One social media commenter gave a verdict on the Biden boasting: “Smoke and mirrors, baby. Smoke and mirrors.”

As an average American, I am not feeling the benefits of the Biden administration’s economic policies, and I don’t think I am the only person saying this.

 

 

Let’s Not Celebrate Too Soon

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On Friday, CNS News posted an article about the jobs report that was recently released. The mainstream media is thrilled that non-farm payrolls added a whopping 528,000 in July, more than double the estimate of 250,000; and the unemployment rate edged down to 3.5 percent in July from 3.6 percent in June. Unfortunately, that does not really represent the whole picture.

The article notes:

But on the downside, the number of Americans not in the labor force — no job and not looking for one — climbed above the 100,000,000 mark again, settling at 100,051,000 in July. That’s a 239,000 increase from June; and it follows an increase of 510,000 from May to June, when the number rose to 99,812,000.

The “not in the labor force” category includes retired persons, students, those taking care of children or other family members, and others who are neither working nor seeking work.

People who don’t have a job and aren’t looking for one put downward pressure on the important labor force participation rate, which dropped a tenth of a point to 62.1 percent in July.

According to the Congressional Budget Office, a lower labor force participation rate is associated with lower gross domestic product (GDP) and lower tax revenues. It is also associated with larger federal outlays, because people who are not in the labor force are more likely to enroll in certain federal benefit programs.

The article concludes:

In contrast to the aging of the population, CBO said it expects two long-term trends to boost participation in the labor force:

The population is becoming more educated, and people with more education tend to participate in the labor force at higher rates than do people with less education. And increasing longevity is expected to lead people to continue working until increasingly older ages.

But CBO said it expects those two trends to be mostly offset by other trends that will put downward pressure on the labor force participation rate.

The unemployment rate is projected to gradually rise over the next few years. By 2028, it is projected to reach 4.5 percent, CBO said.

We saw what policies actually increase the workforce participation rate and gross domestic product (GDP) during the Trump administration. A return to those policies would increase government revenue, slow down inflation, and improve the overall economy. However, the Biden administration is so intent on undoing everything President Trump did, they don’t care if they destroy the American economy in the process.

The July Jobs Report

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I am not an economist, and I don’t play one on television, but I am capable of basic observations. The July jobs numbers came out Friday. This put the rather biased media in a position of having to say that the report beat expectations. When do they ever get their expectations right?

The Wall Street Journal posted the statistics on Friday. Here are some highlights:

The economy created 209,000 jobs in July, well above this year’s average monthly gain of 184,000.

…The jobless rate fell by a tenth of percentage point to 4.3%, matching May as the lowest level of unemployment in 16 years. It declined despite an expansion in the labor force.

…The average hourly wage for private-sector workers grew 2.5% in July. That’s a modest pace historically, but it looks better when considering inflation is so low.

…The share of Americans holding jobs or actively looking for work rose a tenth of a percentage point last month to 62.9%. That’s very slight progress.

…A measure underemployment—one that takes into account jobless workers, reluctant part-time workers and Americans too discouraged to look for work—remained at 8.6%. That’s two tenths of percentage point higher than May’s level, though it’s down more than a point from the prior year.

You can’t turn eight years of anemic economic growth around in seven months. However, we are definitely moving in the right direction. Despite the lack of cooperation from the Washington establishment, President Trump is deregulating and moving forward. If we are to see real economic growth, we need to drain the swamp of those establishment politicians who are blocking President Trump’s economic policies. We need to find primary challengers to many of the so-called leaders in Washington.