Low-income Americans are still reeling from the fallout of high inflation and elevated interest rates. As the economy worsens, job losses are mounting. Continuing jobless claims have surged to 1.910 million, the highest since November 2021, signaling the extent of the crisis.
The private sector has suffered the most, with nearly 2 million full-time jobs lost over the past year. This drastic drop is a rare occurrence outside of recessions, underscoring the severity of the economic downturn. The only sector showing growth is the government, adding 709,000 jobs in 2023.
The job market is clearly in distress, reflected in rising jobless claims, a drop in private sector employment, and a decline in job openings. The number of job openings is trending down, further highlighting the weakening of the labor market. The Federal Reserve’s interest rate hikes, designed to curb inflation, have deeply affected the economy. However, inflation remains stubbornly above the central bank’s 2% target, and the labor market remains fragile.
The struggles of the private sector are exacerbated by the manufacturing sector’s continued decline. Growth in early 2021 was largely a result of the post-pandemic reopening, but it was short-lived. The sector has been stagnating for over two years, shedding jobs and struggling to recover.
For low-income Americans, the situation is dire. Job insecurity, coupled with the rising cost of living, has left many unable to meet basic needs. While government job growth offers some relief, it doesn’t come close to offsetting the losses in the private sector.
The jobs market isn't layoffs, its hiring.
Watch continuing claims and job openings. pic.twitter.com/NDOjLA5bZg
— Darth Powell (@VladTheInflator) December 26, 2024
⚠️BREAKING:
*U.S. CONTINUING JOBLESS CLAIMS RISE TO 1.910 MILLION, HIGHEST SINCE NOVEMBER 2021
🇺🇸 🇺🇸 pic.twitter.com/dnWDOpAYVa
— Investing.com (@Investingcom) December 26, 2024
🚨US PRIVATE SECTOR EMPLOYMENT IS IN A RECESSION🚨
US private sector full-time jobs have DROPPED by nearly 2 MILLION over the past year.
Such a drop has never happened outside of recessions.
The only gain in full-time jobs has been in the government sector.
Job market is weak pic.twitter.com/n5q2vNJ1pf
— Global Markets Investor (@GlobalMktObserv) December 26, 2024
Sources:
https://mises.org/mises-wire/private-sector-jobs-went-negative-october-will-fed-panic-again
https://finance.yahoo.com/news/us-weekly-jobless-claims-fall-134256552.html
https://www.investopedia.com/private-sector-job-growth-slows-to-a-two-year-low-7104238
https://www.bls.gov/opub/ted/2024/employment-in-government-rose-by-709000-in-2023.htm
https://finance.yahoo.com/news/biden-administration-job-growth-numbers-175321823.html