Behind The Jobs Numbers

On Saturday, Zero Hedge posted an honest analysis of the jobs report that recently came out. It may be the only honest analysis out there. All of us know that the Biden economy is a problem for middle America–food inflation is in double digits, gas prices are lower than they have been but still a dollar or so a gallon more than they were under President Trump, and utility bills have increased dramatically in some places. President Biden may tell us that the economy is wonderful, but many of us living in it are not convinced. Just as an example, the total increase in my husband’s and my Social Security this year (after deducting the cost of Medicare) was about $115. I suspect that a lot of retirees didn’t even see that much of an increase. I can assure you that our grocery bill has gone up more than that.

The article at Zero Hedge is complicated and detailed. I suggest that  you follow the link and read it for yourselves. I will try to highlight some of it.

The article reports:

The headline data was stellar across the board, starting with the unemployment rate which once again failed to rise – denying expectations from “Sahm’s Rule” that a recession may have already started – all the way to average hourly earnings, which unexpectedly spiked from 4.1% (pre-revision) to 4.5%, the highest since last September, and a slap in the face to the Fed’s disinflation narrative…

… or it would be if one didn’t think of checking how the average rose: well, it turns out that, since average hourly earnings is a fraction, it did not rise due to a jump in actual wages but – since it is earnings over a period of time – “rose” because the BLS decided to sharply slash the number of estimated hours that everyone was workingfrom 34.3 to just 34.1, which may not sound like a lot until one realizes that the last time the workweek was this low was when the economy was shut down during covid Excluding the covid lockdowns, one would have to go back to 2010 to find a workweek that was this anemic.

The article concludes:

…Said otherwise, not only has all job creation in the past 4 years has been exclusively for foreign-born workers, but there has been zero job-creation for native born workers since July 2018!

This is a huge issue – especially at a time of an illegal alien flood at the border – and is about to become a huge political scandal, because once the inevitable recession finally hits, there will be millions of furious unemployed Americans demanding a more accurate explanation for what happened – i.e., the illegal immigration floodgates that were opened by the Biden admin.

Which is also why the Biden admin will do everything in his power to insure there is no official recession before November… and is why after the election is over, all economic hell will finally break loose. Until then, however, expect the jobs numbers to get more and more ridiculous.

Who Is Actually Working?

The economic recovery under President Obama has been weak. The Heritage Foundation posted the following graph of our unemployment situation:

EmploymentInTheUSThat tells part of the story, but there is another part that is not being widely told. The Washington Free Beacon posted a story yesterday showing that more foreign workers are employed in America than Americans. That is not encouraging news.

The article reports:

A record-high average of 24,963,000 foreign-born workers were employed in the United States in 2015, according to data released Thursday by the Bureau of Labor Statistics.

According to the bureau, foreign-born individuals include legally admitted immigrants, refugees, temporary residents such as students and temporary workers, and undocumented immigrants.

The bureau began recording this data in 2002. At that time, there were nearly 19 million foreign-born workers employed in the United States. The number has increased by 31.4 percent since then.

While the average number of native-born workers employed also reached a record high in 2015, it did not increase at the same rate as foreign-born workers. In 2015, there were an average of 123,871,000 native-born workers employed, up from 117,487,000 workers employed in 2002, an increase of 5.4 percent.

Additionally, the bureau found that the unemployment rate for foreign-born persons was 4.9 percent for 2015, lower than the 5.4 percent unemployment rate for the native born.

I suppose there are a lot of reasons for hiring foreign-born workers–foreign-born workers are generally willing to work for a lower wage than American workers, foreign-born workers may have a better work ethic than the one we have been teaching Americans, and foreign-born workers may be more inclined to take jobs Americans are not interesting in doing. It may be in a company’s best interest to hire foreign-born workers for the above reasons.

So what is the solution? One thing that might help would be to link the number of visas available to foreign-born workers to the number of jobs available. I have no objection to a legal alien working in America as long as he is not taking a job away from an American. Disney is the poster child for replacing American workers with foreign workers (see article in the Orlando Sentinel).

Meanwhile, until the American people stand up to our government and ask them to limit the number of foreign-worker visas so that it corresponds to the jobs available, Americans will be out of work. Corporations have lobbyists, and those lobbyists strongly encourage Congress to allow more foreign workers in so that corporations can cut their cost of doing business. That is why no one has closed our southern border–corporations make more money by hiring illegal aliens as workers. Until we have someone in Washington in power who is not bought and sold by corporate interests, we will not have a secure southern border and American workers will not be secure in their jobs.