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Why We’re Adding Far Fewer Jobs Than the White House Claims

Why We’re Adding Far Fewer Jobs Than the White House Claims
Most Americans are so dissatisfied with the economy that they believe the nation is already in recession. Yet the Biden administration often cites robust job growth as proof that the economy is in great shape. New data from the Federal Reserve Bank of Philadelphia throws cold water on that claim, however. It shows recent job growth has been 80% less than previously estimated.

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New Data Shows Job Growth in the US is 80% Less Than Previously Estimated

A recent analysis from the Federal Reserve Bank of Philadelphia has revealed that job growth in the United States has been significantly overestimated. Despite claims from the Biden administration of robust job growth, the analysis shows that recent job growth has been 80% less than previously estimated.

The Bureau of Labor Statistics (BLS) produces monthly estimates for the number of payrolls that businesses added or subtracted, and according to their reports, annualized job growth in the last quarter of 2023 was estimated at 1.6%. However, the analysis from the Philadelphia Fed showed an anemic 0.3% annualized rate, a significant difference that amounts to over 500,000 jobs that were supposedly added to the economy in the last quarter of 2023 never even existed.

In addition to job estimates, the BLS also updates the consumer price index (CPI) each month, a tool used to measure inflation and the cost of living. However, some components of the CPI are no longer reflective of the costs faced by the typical American today, with the official metric off by roughly a factor of five.

The discrepancies between official data and people’s perception of the economy are causing widespread dissatisfaction with the economy, with many Americans feeling that the official data does not align with reality. This has led to concerns that the initial economic data being widely reported is misleading.

Overall, the analysis from the Philadelphia Fed has raised questions about the reliability of official economic metrics and the accuracy of the data being used to assess economic conditions in the United States.

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