Quick Hit:
The June jobs report from the Bureau of Labor Statistics revealed a troubling increase in unemployment to 4.1%, the highest since 2021, with a significant revision downward of 111,000 jobs from April and May. The shift from full-time to part-time employment continues, painting a bleak picture of the American job market under the Biden administration.
Key Details:
The unemployment rate rose to 4.1% in June, marking the highest level since 2021 with the number of unemployed increasing by 162,000.
Revisions to the April and May jobs reports resulted in 111,000 fewer jobs than initially reported, with 57,000 fewer jobs in April and 54,000 fewer in May.
Over the past year, the U.S. economy has added 1.8 million part-time jobs while losing 1.6 million full-time positions, indicating a troubling shift in the nature of employment.
Diving Deeper:
The Bureau of Labor Statistics (BLS) released its June jobs report on Friday, showing a concerning rise in the unemployment rate to 4.1%, the highest it has been since 2021. The report highlighted a net loss of 111,000 jobs due to downward revisions of job creation figures from previous months—57,000 fewer jobs in April and 54,000 fewer in May.
Brian Brenberg, host of Fox Business' The Big Money Show, commented on the report, saying, “You’ve got these revisions again—down 111,000 jobs in May and April… The unemployment rate ticked up to 4.1%... The number of unemployed increased by 162,000. So, I look at this report and I see more weakness than strength.”
The data shows a continued troubling trend: since June 2023, the U.S. economy has added 1.8 million part-time jobs while losing 1.6 million full-time jobs. This shift from full-time to part-time work underscores the ongoing instability in the job market. Economist E.J. Antoni from the Heritage Foundation expressed his concerns on social media Friday, stating, “Employment is flat over the last year with almost no growth, but the little increase we saw was entirely from part-time job growth as full-time employment went down; these directions are not new, but their magnitudes are increasing—that's a bad sign.”
Antoni further emphasized in another tweet, “Full-time jobs are DOWN 1.6 million over the last year and part-time jobs are up 1.8 million—the economy is hemorrhaging full-time employment, and all the net job growth is gig work…”
Adding to the domestic economic concerns, global economic anxieties are fueling political turmoil and violence across various countries. For instance, Kenya, dealing with significant debt, experienced deadly protests over a proposed tax increase. Similarly, Bolivia faced a failed coup attempt due to economic dissatisfaction, and France saw a surge in far-right support amid rising costs and low wages.
Nouriel Roubini, an economist at New York University, noted, “An economic malaise and a political malaise are feeding each other.” This global trend of economic discontent has led to widespread protests and instability, from high-income nations like Belgium and Poland to debt-ridden countries like Argentina and Pakistan.
As economic fears continue to drive unrest worldwide, the instability in the American job market under Biden's administration is a critical issue as the election approaches. The rising unemployment rate and declining quality of jobs highlight the economic challenges that have become a significant point of contention. Voter sentiment is increasingly influenced by these economic woes, with many Americans losing faith in Biden's ability to manage the economy effectively.