The June jobs report revealed better than anticipated results with 206,000 new jobs now added to the US economy. Is Bidenomics working? Absolutely not. The jobs reports are inflated because the Biden Administration has been multiplying the public sector.
Of the 206,000 new jobs, 70,000 were created within government, surpassing the 49,000 government jobs created last June. Local government accounted for the bulk of new positions within the private sector last month. One-third of all new positions created in June are within the government, funded by taxpayers, and add nothing to the overall GDP. The public sector is growing at the highest annual pace since the 1990s.
America needs manufacturing positions. Our industries are fleeing the nation entirely and our ability to produce has been drastically undercut. At least 10% of overall GDP is at risk. The Biden Administration aimed to increase manufacturing hires by 1 million in 2024. The sector lost 9,000 positions in February and then failed to gain a single hire in March. The data for April and May is still preliminary and can be revised, but they believe there was a net gain of 5,000 manufacturing jobs from December 2023 to May 2024 based on the Bureau of Labor and Statistics. Now, initial results show that the US shed even more manufacturing jobs in June.
April’s job report was revised down to 108,000 compared to the initially reported 165,000 positions. May’s report was also revised to show 218,000 new jobs vs the initially reported 272,000 positions. The revised figures never make the headlines as they want those initial reports to paint the US economy in the best light.
In April, Federal Reserve Chairman Jerome Powell said he was unimpressed by the “strong” jobs report, and it certainly was not enough for the central bank even to consider dropping rates. There is a reason that the central bank does not believe the “strong jobs reports” are an indication of a strengthening economy. Unemployment, at best, is at 4.1% right now – the highest since November 2021.
Expanding the public sector is a detriment to the US economy. These jobs produce nothing and cost the taxpayers a hefty sum. Trouble consistently brews when governments grow disproportionately. The Roman Empire, the longest-standing empire in history, vanished as a direct result of an oversized public sector that bankrupted Rome. The private sector produces economic growth, while government is a public servant consuming the wealth generated by others.
