According to the U.S. Labor Department jobs data report for June, the American labor force shrank from 62.3 to 62.2 percent. That means there was a loss of 353,000 jobs from May to June. And the unemployment rate remained unchanged at 3.6 percent.
Build. Back. Better? Not yet.
In June, the nation still had approximately 200,000 more Americans unemployed than before the pandemic. There were 215,000 more “long-term unemployed” Americans than in February 2020. The labor force participation rate is still down 1.2 percent from pre-COVID. And the number of citizens who are not in the labor force but want a job is now 5.7 million. That’s 700,00 more than before the pandemic.
Let’s go even further…2.1 million Americans remained off the job because of COVID! So we are not seeing America built back better, and we are not seeing the virus “shut down” either.
Maybe Biden got confused and focused on “shutting down” the economy instead of the virus.
Consumer inflation continues to outpace wage growth, it hit 8.6 percent last month. That means that the real wages an American is making are down about 3% over last year.
Lower revisions to April and May show -74K FEWER jobs created that previously reported. Wages up +5.1% from a year ago; paychecks failing to keep up with inflation.
— Dagen McDowell (@dagenmcdowell) July 8, 2022
We will get the latest information from June when the Consumer Price Index is announced next week. It will most like add to the bad news.
We do know that there were 235,000 new weekly jobless claims, which is the most in six months. And the number of jobs cut in June was 32,517. That is almost 60% more layoffs compared to last June.
All this means that fear of recession is becoming more and more justified. The jobs growth data is a sign that the economy is not heating up as it responds to the Federal Reserves’ surge in interest rates.
Biden’s economic policy of spending and printing money is building backward badly.