ORTIZ: Biden Admin Puts Its Head In The Sand On America’s Shaky Economy Yet Again

The Labor Department announced this morning that 528,000 jobs were added last month, which is good news. However, given that labor figures tend to be a lagging economic indicator, the upward movement is likely to be short lived. Moving beyond the jobs day headline, it’s clear the economy is on shaky ground.

Wages continue to grow far more slowly than inflation, reducing workers’ real incomes and living standards. The labor force participation rate remains depressed and has actually declined over the last couple of months. Earlier this week, nationwide job openings fell to their lowest level in nine months, and initial jobless claims continued to trend upwards. And for the kicker, last week, the Commerce Department announced that U.S. GDP had contracted for two consecutive quarters, indicating the economy is in a recession.

Indeed, the topline unemployment rate of 3.5% seems low. But it is being driven by a declining labor force participation rate. If we apply the pre-pandemic labor force participation rate to today’s population, we find that millions fewer Americans are in the labor force. If these people on the workforce sidelines were considered unemployed, the unemployment rate would be dramatically higher than today’s rate suggests. (RELATED: SHEFFIELD: Even Democrats Used To Know Raising Taxes During A

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