Look a Little Deeper

By Murray Edwards

Last week the latest job report came out, admittedly, it was slightly higher than expected at 272,000 new jobs.

However, the unemployment rate ticked up to 4%, the job participation rate dropped to 62.5% and the U-6 unemployment rate which takes into effect those underemployed, individuals discouraged looking for a job, and those who are in the group of the long-term unemployed, had a slight increase from 7.3% to 7.4%.

Where the majority of the jobs come from – Healthcare at 68,000, new government employees at 43,000 and those with on social assistance added 15,000 individuals.

But dig a little deeper.

The gap between full-time and part-time employment also widened. Full-time jobs fell by 625,000, and part-time jobs surged by 286,000. The number of people that are now working two or more jobs has increased to a staggering 8.4 million individuals.

One other notable trend has been the difference between US-born and foreign-born workers.

Last month, native-born individuals lost 663,000 positions, and foreign-born workers, both legal or illegal, gained 414,000 positions.

The Biden administration continues to tout their job creation efforts, he seems not to be concerned that more Americans are working multiple jobs to makes ends meet or that Americans are slowly being replaced by foreign workers, a disturbing trend that we as a country cannot allow to continue.

The question will be, what will the US central bank do when they next meet?

As full-time jobs drop, with part-time jobs on the upswing and as inflation ticks back up, the chances of the once hoped reduction in the interest rate flies out the window.

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