The Biden administration had another huge economic miss with unemployment during the month of July as it rises to 4.3 percent and just 114,000 new jobs created. This far lower than the expected 175,000 jobs that were forecast and the unemployment projection of 4.1 percent. If you thought things were on the up and up, think again. Unless we have a massive shift in policy and a whole lot of time to keep those principles in play, we aren’t going to see a lot of improvement. Ultimately, this will lead to an increase in the cost of living, further exacerbating our economic woes.
https://x.com/TheStalwart/status/1819350031133995498
A report from Bloomberg said:
Payrolls increased by 114,000, less than the 175,000 median forecast and undershooting all but one of 74 forecasts in Bloomberg’s survey. That weaker reading also came after a 29,000 cumulative downward revision to payroll gains for the previous two months. Average hourly earnings rose 0.2% on a monthly basis, also less than forecast, and on an annual basis increased by 3.6% — the least since May 2021.
The unemployment rate unexpectedly climbed to 4.3% in July, exceeding all 69 estimates in the Bloomberg survey. The 0.2 percentage point increase on the month means that the so-called Sahm Rule has been triggered. Coined by former Federal Reserve economist Claudia Sahm, it says that when the average jobless rate over three months is 0.5 percentage point above the 12-month low, a recession is coming. Sahm said on Bloomberg Radio Friday that “we’re not headed in a good direction.”
Private education and health contributed about half of the July payroll gain, with leisure and hospitality and government also adding jobs. Overall, private sector payrolls recorded their second-weakest increase since 2020
One of the big takeaways from this economic update is that private sector jobs are not being created. Instead, the “new jobs” are mostly government positions, which means that the monstrous apparatus that already rules over us and oppresses us on a daily basis with nearly endless bureaucracy is getting bigger. When it grows exponentially like this for a lengthy amount of time, it leads to further regulations on businesses. Naturally, that then causes companies to reduce hours, cut back on staff, and raise prices. Which then gets passed on to the consumer. A cycle of economic destruction that goes round and round.
- The household survey showed that the labor force participation rate rose, unexpectedly, to 62.7%, back where it was in April. The Black unemployment rate held steady, at 6.3%, while the White rate rose to 3.8% from 3.5%. The Hispanic jobless rate increased to 5.3% from 4.9%.
- The notably weaker-than-expected report ramped up bets on the Fed to lower interest rates three times this year, and for policymakers to kick off the cycle with a 50 basis point move in September, rather than 25. Two-year Treasury yields plunged as much as about 30 basis points, and were down 19 basis points as of 9:30 a.m. in New York, at 3.96%. Stocks tumbled at the open, with the S&P 500 down over 1.5% and the Nasdaq Composite falling 2.5%. The dollar slid.
Bottom line: Things aren’t getting better, contrary to the false narratives being shoved down our throats by the propagandists in the mainstream media. In fact, it’s getting worse. Be sure to prepare yourself for a potential recession or stock market crash. Have an emergency stash of food, water, and other supplies. Consider investing in precious metals. It’s better to have these things and not need them than it is to need them and not have them.
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