Biden’s Worrying Workforce Decline – Project 21
May 07, 2022 Biden’s Worrying Workforce Shrink
According to government measures, 428,000 jobs were created in April. But 353,000 Americans left Workforce. This is not a good sign for the economy.
While the unemployment rate determined by the U.S. Bureau of Labor Statistics remained constant at 3.6%, the labor force participation rate – the total number of Americans in the labor force – fell two tenths of a point at 62.2%.
Like CNBC Explain in an article on the employment situation:
This means that workers have not returned to the labor market in expected numbers and, in fact, some have withdrawn. This is not a good sign for an economy with labor shortages and rising wages.
This concern is also present in the alternative measure of employment U-6, which takes into account total unemployment with those who are only marginally attached to the labor force. This rate Pink by a tenth of a point to 7.0% – nearly twice the rate touted by the White House.
This anemic jobs picture, the latest in a series of underperforming results as America tries to rebound from the COVID pandemic lockdown, has members of the National Center’s Project 21 black leadership network – including economist Michael Austin – worried:
The April jobs report is an unfortunate example of Americans paying more but receiving less.
Despite expectations of job growth, the country’s labor force shrank by 353,000 people. For those who work, on time wages rose only 5.5%, well below March inflation of 8.5%. This means that fewer goods are produced and what stays on the shelves becomes more expensive for families.
With investor confidence declining, another US recession may be inevitable. If the Biden administration is really interested in supporting the economy, it should cut government waste and give more tax breaks to Americans.
Member of Project 21 Melanie Collette – the host of the radio show “MoneyTalk with Melanie” – added:
The jobs report is just another reflection of how Biden’s economy is failing the American people.
While the Biden administration brags about being no friend of big business, companies with 1,000 or more employees have clawed back the majority of the few available workers in an extremely tight labor market. On the other hand, companies with 50 employees or less are hemorrhage personnel, as inflation rates and historically high employee retention costs eat into their bottom line.
It’s ironic that this jobs report was released after Biden mentioned, in its proclamation for National Small Business Week, that it is “committed to opening up new opportunities to help small businesses grow and compete.” For the 50% of Americans employed by small businesses, Biden’s economic policies do the opposite.
And a member of Project 21 J.Philip Clayspecialist in real estate investment, deplores the wasted potential:
Job creation in the United States is a welcome sight. We have finally reached the same unemployment rate posted by the Trump administration in February 2020. We are seeing historic gains as businesses struggle to staff up to meet the demands.
But, while those should be gains, the average worker sees those wage gains being wiped out by this massive inflation for which President Biden has yet to respond.