Why we’re adding far fewer jobs than the White House claims
LSEG director of consumer research Jharonne Martis reacts to U.S. consumer sentiment falling for the third straight month on 'Making Money.'
Most Americans are so dissatisfied with the economy that they believe the nation is already in recession. Yet the Biden administration often cites robust job growth as proof that the economy is in great shape.
New data from the Federal Reserve Bank of Philadelphia throw cold water on that claim, however. It shows recent job growth has been 80% less than previously estimated.
Each month, the Bureau of Labor Statistics (BLS) produces an estimate for the number of payrolls that businesses added, or subtracted, on net balance. According to those reports, annualized job growth in the last quarter of 2023 was a healthy 1.6%. But that’s likely way off.
The Biden administration often cites robust job growth as proof that the economy is in great shape. (Andrew Caballero-Reynolds/AFP via Getty Images / Getty Images)
The Philadelphia Fed takes these data from BLS and compares them to a much more comprehensive estimate of the labor market each quarter. That allows for better estimates of job growth than can be gleaned from the monthly BLS reports.
PRIVATE SECTOR JOB GROWTH COOLS IN MAY TO 152,000, WORSE THAN EXPECTED: ADP
Instead of the 1.6% growth rate previously estimated, the analysis from the Philadelphia Fed showed an anemic 0.3% annualized rate.
That difference of just 1.3 percentage points may not sound like much, but it’s a significant gap. In a country of over 330 million people and over 150 million jobs on businesses’ payrolls, this amounts to over half a million jobs.
'Kudlow' panelists John Carney and Taylor Riggs examine the latest job numbers and give their economic outlook.
In
Read more on foxbusiness.com
