In response to the June jobs report, President Joe Biden hailed “Bidenomics in action,” showcasing a positive outlook on the economy. However, delving deeper into the report from the Bureau of Labor Statistics reveals a concerning reality: over five million Americans who desire employment were not counted in the 3.6% unemployment rate.
The report exposed that 5.4 million individuals were not included in the unemployment count because they were not actively seeking work during the surveyed period or were unable to take a job.
“The number of persons not in the labor force who currently want a job was 5.4 million in June, little changed from the prior month,” the report said. “These individuals were not counted as unemployed because they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job.”
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For unemployment purposes, active efforts to find employment are essential, and this leaves a significant number of Americans unaccounted for.
Furthermore, the report highlights that 1.1 million people are categorized as long-term unemployed, representing 18.5% of the overall unemployed population. Many Americans are also stuck in part-time jobs, with 4.2 million individuals working part-time due to reduced hours or the inability to secure full-time positions.
“The number of persons employed part time for economic reasons increased by 452,000 to 4.2 million in June, partially reflecting an increase in the number of persons whose hours were cut due to slack work or business conditions,” the report added.
According to the report, the labor force participation rate stands at 62.6%, which falls short of the levels observed during the Trump era before the pandemic, as documented by the Federal Reserve.
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Additionally, the report highlighted the growth of the government sector. In June, government jobs increased by 60,000, with an average addition of 63,000 jobs per month this year, following the addition of 23,000 jobs per month in 2022.
Although the government sector has seen growth, the overall economic projections are less optimistic. The Congressional Budget Office predicts a slowdown in the growth of real GDP during the second half of 2023, leading to an increase in the unemployment rate. By the end of 2024, the unemployment rate is expected to reach 4.7% before gradually declining to 4.5% in 2025.
Numbers matter
The report’s revelation sparks relevance as Biden’s presidency currently enjoys a streak of positive economic data, with inflation showing signs of cooling, business investment on the rise, strong job growth, and growing economic optimism among consumers and voters.
While opinion polls still indicate that Biden faces some challenges with approval ratings on his handling of the economy, there are indications that voters may be starting to view the economy more favorably under his leadership, partly due to the impact of infrastructure, manufacturing, and climate bills he signed into law.
According to the Commerce Department, the economy grew at a 2.4% annual rate in the second quarter, surpassing economists’ expectations. Furthermore, price growth has slowed, and consumer spending has increased. The Personal Consumption Expenditures Index, the Federal Reserve’s preferred measure of inflation, has fallen to 3% this year from about 7% last June, easing the economic pressure that has been a challenge for Biden’s presidency.
Notably, the positive effects of Biden’s economic policies are becoming more evident in certain sectors, particularly in a significant surge in factory construction. Data released by the government showed that manufacturing facilities’ spending increased by nearly 80% over the previous year, and the entire manufacturing sector has added close to 800,000 jobs since Biden took office, employing the highest number of people since 2008.
Consumer confidence is also on the rise, reaching levels not seen since the early months of Biden’s presidency. This can be attributed to the combination of cooling inflation, low unemployment, and rising wages, which have improved the standard of living for American workers.
While polls still reflect a somewhat negative economic sentiment, there are signs of improvement. For instance, in a recent New York Times/Siena College poll, fewer respondents rated the economy as “poor” compared to last summer.
Administration officials credit the strength of the economy, particularly in the labor market, to the direct aid provided to individuals, businesses, and state and local governments through the $1.9 trillion stimulus package passed in 2021.
However, Republicans are critical of Biden’s economic policies, arguing that inflation remains high, and wage gains have not kept up with rising prices for many American workers.
Economists remain divided on how much credit should be given to Biden’s policies for the economic recovery, but many agree that the trillions of dollars in aid injected into the economy in 2020 and 2021 have contributed to its resilience.
Information for this story was found via The New York Times, Gateway Pundit, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
