The reported impressive job gains for Dec. were also changed downwards.
“Unexpectedly” is now the code word yet again, as Wall Street predicted that the economy would give around 200,000 new jobs.
Jan. is the first month since Dec. 2020 that the economy has lost jobs.
Despite the White House bragging that 2021 gave more jobs than any previous year, we are still over 3.5 million jobs short of where the American economy was in Feb. 2020, before the demonstrably pointless coronavirus shutdowns.
The Biden economy did not create new jobs. It was recovering the jobs that were destroyed — and far too slowly. Or at least that was until now. The so-called “v-shaped recovery” was impeded by continuing lockdowns in two large states, Blue New York and Blue California.
Return to economic norms were delayed by Bidenflation, Joe Biden’s war against domestic energy production, and Joe Biden’s return to terrible overregulation.
“Service-providing industries lost 274,000 jobs,” as reported by CNBC, “with goods producers losing around 27,000.”
The Biden White House knew this was coming, too.
This week, White House spokesperson Jen Psaki pre-spun the terrible numbers, falsely saying that the “almost nine million people who called in sick in January” may be counted as being unemployed.
But that’s not how the BLM report their numbers or the ADP counts their job losses.
ADP’s top economist, Nela Richardson, stated, “The labor market recovery took one step back at the beginning of 2022 because of the effect of omicron and it is significant, though temporary, affect on job growth.”
The Fed is also watching the jobs report. Our “transitory” inflation issue seems to be continuing for at least the medium term, but the Fed will not raise inflation-killing rates if the job market is bad.
There is a word for when economic stagnation combines with inflation, something economists once believe could never happen during the same time: Stagflation.
That word was created in the 1970s, which was the last time over-regulation and fake-money policies combined to destroy growth and cause inflation.
Of all the possible decades that America could have re-lived, why did it have to be the ’70s?