Job growth in the U.S. hit a serious snag in August, falling well below expectations and making the Biden administration’s claims of a “booming economy” look even more questionable. To make matters worse, job growth numbers from previous months were quietly revised down, signaling that the labor market might be limping along more than anyone’s willing to admit. The July estimate, for instance, dropped from a mediocre 114,000 to a dismal 89,000, and June wasn’t much better, with a revision down by 60,000 jobs to a meager 118,000.
Sure, the unemployment rate dipped to 4.2 percent from July’s 4.3 percent, but don’t start celebrating just yet. The labor force participation rate remained stuck at 62.7 percent, essentially flatlining for the past year. This is hardly the sign of a robust economy. Meanwhile, average hourly earnings saw a slight uptick, increasing by 14 cents (0.4 percent) to $35.21. Over the year, earnings have climbed by 3.8 percent, which, while better than expected, doesn’t exactly scream prosperity when you factor in inflation eating away at purchasing power.
Private sector payrolls also fell short, adding only 118,000 jobs, well below the forecasted 136,000. And to add insult to injury, July’s already underwhelming private sector number was revised down from 97,000 to a paltry 74,000. So much for the economic miracle that was supposed to materialize. It seems like every time we turn around, the numbers get worse, not better.
The manufacturing sector, which the administration loves to tout as a priority, shed 24,000 jobs—six times the predicted loss. Talk about a miss. The one silver lining? The July numbers for manufacturing were revised up to show a gain of 6,000 jobs, instead of the previously reported 1,000. But a one-off revision hardly makes up for the sector hemorrhaging jobs in August.
In short, the job market isn’t the powerhouse that some would like us to believe. With revisions going in the wrong direction and sectors like manufacturing taking a beating, the so-called economic recovery looks more like a slow-motion stumble. But hey, at least we got that 14-cent raise, right?
