The U.S. economy created 49,000 net new jobs in January, about 43,000 of which were public-sector positions, the U.S. Labor Department reported.
That means the U.S. economy netted only 6,000 private-sector jobs last month. Analysts had predicted 105,000 new jobs would appear in January.
The leisure and hospitality industry shed 61,000 jobs last month, retailers dumped 38,000 workers, transportation businesses dispensed with 28,000 employees, and manufacturers cut payrolls by 10,000.
The figures indicate a widening crisis: job losses were concentrated in face-to-face industries in December, while January’s figures show employment weakening across the economic spectrum.
January’s only job gains were among schools and colleges, which added 119,000 jobs; and the 81,000 workers taking temp jobs, an additional sign that employers are skittish about the future.
Even worse, December’s net loss of 140,000 jobs was revised; the actual number was 227,000 lost jobs.
Reality
America has lost ten million jobs since politicians launched the COVID War last year and imposed draconian lockdown “Executive Orders,” thus, by the real number, while equities keep rising higher, the real economy is stumbling lower.
“Officially,” January’s unemployment rate dropped from 6.7 percent to 6.3 percent as more people stopped looking for work and are considered to no longer be part of the labor market.
In the United Soviet States of Amerika, when an unemployed person stops receiving their unemployment check, which averages some 26 weeks, and they still can’t find a job, they are no longer counted as unemployed.
The fact is, the U.S.S.A. Bureau of Labor Statistics does not count those who are without a job as unemployed. It excludes those who haven’t looked for work within the past four weeks and removes them from the labor force.
We note this to illustrate the inaccuracy of the “official” data and to exemplify the true economic fundamentals and the socioeconomic implications.
Debt Bubble
On 5 February, the Senate passed a “reconciliation” measure that skirts a filibuster and will allow the chamber to pass Biden’s plan by a simple majority. The measure passed on a party-line vote, with vice-president Kamala Harris breaking a 50-50 tie.
Prospects for the broad spending and investment plan, combined with Biden’s ambitious new plan to distribute vaccines, continue to boost financial markets and the hopes for a quickening recovery.
Again, because of the money being pumped into the economy, we maintain our forecast for the U.S. economy to stage a significant rally in the second half of this year.
However, Jerome Powell, Chair of the U.S. Federal Reserve, and others have warned that any recovery is likely to be slow and reveal permanent structural damage to the economy.
Last month, more than four million people had been out of work for at least six months, the definition of “long-term unemployment.” The number is four times greater than before the economic lockdown began last March.
Those long-time jobless workers comprise about 40 percent of the total number of out-of-workers and do not include those who have stopped trying to find a job and those unable to work because of child care or other responsibilities.
Being out of work for months makes it harder to re-enter the labor force, studies have shown.
