Last Friday's nonfarm payrolls was the most recent case in point: for those who didn't read our extended analysis titled "Inside The Most Ridiculous Jobs Report In Years", which dissected the laughable claim that the US added 272K payrolls, here is what we found.
While the Establishment Survey did indeed report that 272K "Jobs" were added, this number also included multiple job holders; stripping those out, we get that the actual number of "Employed" workers plunged by 408K... ... which is also why the unemployment rate actually went up to 4.0% for the first time in over three years, despite this marvelous "Increase" in payrolls.
While one can debate the quantitative aspects of the jobs report, there is no debating the qualitative: there it's one giant disaster: as we learned in May, whatever the actual number of payrolls added, what we know is that the trend of full-time to part-time worker conversions continues, with 625K full-time jobs lost in May, offset by 286K part-time jobs.... ... which is hardly a new trend: in fact, over the past year, the US has lost 1.2 million full-time jobs, replaced with 1.5 million part-time jobs.
Finally, there is the data point which we first highlighted more than a year ago, and which has since emerged as the biggest political talking point involving the labor market: the fact that since 2018, the US has created exactly zero native-born jobs, and all the job growth has gone to foreign-born workers... ... and which as Standard Chartered confirmed last week, means almost entirely illegal aliens.
There is much more in our full discussion of the latest jobs report, but you get the idea: every so-called "Strong" jobs report has been a disaster if one puts in even a little work to dig below the pristine, if fake, surface.
While we expected this charade to continue indefinitely, and certainly at least until the November election, at which point suddenly all the truth about the ugly labor market would be revealed to usher in the new president amid an economic crisis, we were shocked when none other than the Fed chair admitted today that the Biden admin was rigging jobs data.
In other words, the jobs - like so many things about this Potemkin economy - are a lie, and while Powell immediately realized what he had said, and tried to couch it by adding that payrolls are "Still strong", suddenly the entire narrative of a strong labor market imploded in front of our eyes, because if the Biden admin will lie about a "Bit" of the jobs report, it will lie about any part of it.
https://www.zerohedge.com/markets/fed-chair-powell-admits-biden-admin-overstating-jobs
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