The government is not just acting as a crutch for a limping economy, it’s practically carrying the weight

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US government jobs hit a record 23.5 million in November, rising for the 43rd consecutive month. Government jobs have risen by 2 million over the last 4.5 years. The growth rate’s 18-month moving average stands at 2.7% year-over-year, the highest in at least 45 years. Historically, such rapid increases in government jobs have often signaled upcoming recessions.

Meanwhile, full-time private sector jobs dropped by 1.8 million year-over-year in November. This sharp decline highlights a significant shift in the employment landscape. The number of Americans holding multiple jobs reached 8.5 million in December, near the highest on record. This figure has risen by 1.5 million over the last three years, underscoring that many people need to juggle multiple jobs to make ends meet.

Over the past 1.5 years, full-time jobs have fallen by 1.3 million, with the private sector alone losing approximately 1.5 million full-time jobs. In stark contrast, part-time jobs have surged by 1.67 million to near record levels, more than offsetting the drop in full-time employment.

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Adding to these troubling trends, US layoffs remain at crisis levels. Job cut announcements soared to 761,358 in 2024, the highest since the 2020 crisis. Excluding that exceptional year, this is the largest number since the Great Financial Crisis in 2009.

Moreover, the US government posted an $87 billion budget deficit in December 2024, capping a record $711 billion deficit for the first three months of the 2025 fiscal year. This represents a 39% increase compared to the same period a year earlier. Such a significant rise in the deficit indicates growing outlays and slightly declining revenues, further highlighting economic strains.

These trends collectively paint a sobering picture: while government employment continues to rise, the private sector is grappling with significant challenges. It feels as though the government is acting as a crutch for a limping economy, highlighting severe imbalances and underlying issues that urgently need addressing.

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Sources:

https://www.bls.gov/news.release/archives/empsit_01102025.htm

https://www.challengergray.com/blog/job-cuts-2024-highest-since-2009

https://www.reuters.com/markets/us-job-market-2024-summary-2025-01-15/

https://www.cnbc.com/2024/12/10/us-government-posts-87-billion-december-deficit.html

https://fred.stlouisfed.org/series/LNS12026620


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