Posted on 01/06/2023 6:24:20 AM PST by Kaiser8408a
The December jobs report is out and the top-line number is … 223k jobs were added. That is strong enough to give The Federal Reserve the green light to raise rates.
But while it was a good jobs report, it shows the inflation tax in full view. Hourly wage growth year-over-year (YoY) was 4.6% in December. Unfortunately, the inflation tax was 7.1% in November. If we assume that the inflation rate in December is the same, the REAL hourly wage growth was -2.5% YoY.
But it is likely that headline inflation cooled a bit in December as The Fed continues tightening. But unless headline inflation cooled to 4.6% YoY, the inflation tax is positive and destructive.
The average weekly hours employed fell to 34.3 while U-3 unemployment rate fell.
Here are the rest of the numbers.
(Excerpt) Read more at confoundedinterest.net ...
Since the Philly FED said the jobs number was off by 1 million last year how can we trust these numbers?
So when M2 decreases , theres a drop in employment…. Does than mean the governments spending is subsidizing jobs?
When M2 decreases money will become tight and jobs will be lost or flatten because capital will be harder to raise, inflation will abate. From the time M2 decreases until jobs are lost and inflation abates there is a delay.
But what happens politically is that people then want the Gov/FED to step back on the gas as people are losing jobs and the whole demented cycle happens all over again but the starting point of the inflationary cycle is just a bit higher.
There is no doubt government spending subsidizes jobs.
Holiday hiring always increases jobs in Nov and Dec. those jobs will cease to exist in January!!
That the conventional wisdom but I don't believe these numbers at all due to the incredible amount of government spending propping up jobs all over the place and also the Philly FED said last year the jobs numbers were overstated by 1 million.
On Greg Kelly’s show last night he reported that there are over 9 million people employed by the federal government if you remove the military from those stats the federal government STILL employs 7 million 5 hundred people!! This is utterly ridiculous the government has become a bureaucratic BEAST!!
Wage hikes adds to labor cost that adds to cost of goods and services - thus a leading cause of inflation and migration of jobs and industries off-shore. How cleverly, MSM narratives rationalize it as a catch up to rising inflation which is created by rising labor costs in the first place! For leftists, the vicious cycle is a useful tool to play santa claus while strengulating free-market economy using inflationary politics
Latest jobs report has as much credibility as a circa 1983 Soviet Union report about record production of Ladas (Soviet Chevies) which declares the “superior economic vitality of glorious Socialist system, wisdom of planning, and foresight of Politburo.”
In a couple months they will quietly revise the jobs number down to about half of the advertised 223k. Anything to make Joey look good.
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