In August, a forecast predicted that the Biden Bureau of Labor Statistics would revise job numbers down by "up to 1 million" for the period from April 2023 to March 2024. This revision suggested that all job report "beats" in the past year were actually misses, indicating a far worse job market than the administration acknowledged. On Wednesday, the actual revision was a surprising drop of 818,000 jobs, confirming predictions made by the Philadelphia Fed six months earlier.
The Philadelphia Fed had indicated that job numbers reported were overstated by at least 800,000. The downward revision of 818,000 over the past year equals about 68,000 jobs lost each month, suggesting a significant decline in the job market. This situation was the main reason for the Federal Reserve's decision to cut interest rates sharply, unveiling the deterioration of the economy that had been covered up.
Moreover, the Philadelphia Fed's latest report revealed that the decline in the labor market extended into the second quarter of 2024. It stated that employment changes from March to June 2024 were significantly lower than the Bureau of Labor Statistics had initially reported. The Fed's early estimates showed that 25 states experienced job losses, while only two states had gains.
The predictions for the job revisions indicated that California would see the largest loss, with 172,700 jobs cut, and Texas would be reduced by 112,100 jobs. Further declines are expected in upcoming estimates. Consequently, it has been confirmed that no net jobs were created during the second quarter; instead, the U. S. lost jobs, establishing that Biden misrepresented the state of the economy once again.
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