Joe Biden keeps bragging about his economy, but there is one aspect of this economy that the media has kept pretty quiet.
That may now finally get exposed after layoffs surged 136% in the month of January, the second highest number on record.
Talking Points…
- Biden's economy
- Layoffs surge
- Analysis
Our economy got crushed when Biden took office, with interest rates and inflation soaring out of control, along with supply chain issues that just drove consumer prices through the roof. The numbers have fallen over the last few months, but this seems more like a small lull before the storm.
There is also one aspect of all this that the media, at least for the most part, ignores. That being said, a major part of the jobs sector improving over the last few months has been the addition of more government jobs at all three levels. Local, state, and federal job growth has been significant, and that is never a good thing for the overall economy and the American people, as these jobs are all funded with taxpayer money. Furthermore, common sense says that the government should not be the largest employer in the country.
For instance, in November, while Joe Biden was bragging about job growth, that job growth came mostly from three different sectors: health care, government, and leisure and hospitality. The rest of the job markets were stagnant, if not going backward. If you add private education to those three, that accounts for 81% of the job growth through November 2023.
Typically, January is not a big month for job numbers because you start to get all of the holiday workforce that was laid off hitting the numbers. Having said that, 136% is ridiculously high, and while Joe Biden chirps about his economy, this number has many analysts panicking that the worst is yet to come under Biden.
Another contributor to the layoffs is advances in automation and AI technology, which are starting to eat up jobs that had been previously held by actual workers. This is something that will only expand as we move forward, so more jobs will be cut as this technology proves it is capable of handling these jobs.
Andy Challenger, senior vice president of Challenger, Gray & Christmas, explained:
"The impact of rapidly advancing artificial intelligence adoption is beginning to be felt from a jobs perspective, particularly in media and tech, but truly across sectors.
"That said, companies are not outright blaming AI for many layoff decisions."
To that point, the technology sector was second only to the financial sector for layoffs, with the industries losing 15,806 and 23,238 employees, respectively. Food production companies also cut significant jobs, losing a total of 6,656 due to "high costs and automation."
Regardless of political affiliation, nobody actually roots for a sitting president to fail on the economic front. I would have loved to have been wrong about everything that I had predicted would happen on the economic front under Biden, but more often than not, the economic challenges were there in plain sight, but this administration and the media were ignoring them.
There are other driving factors as well, with transport ships being attacked at the top of that list. The attacks against those ships create transportation and supply chain issues, which will drive consumer prices even higher. I still don't believe that we have seen the worst of Biden's economy, and I continue to sit and wait for the other shoe to drop.
If Biden keeps spending money like he has, there is no telling how far the bottom will drop when it does fall.
