Chart of the Day: That “WOW” Job Report Reveals a Disturbing Trend of Socialism

Contact Your Elected Officials
Right Wire Report Header

In case you missed it, there was a loud gasp from Wall Street strategists and economists after the last Friday’s jobs report (2023-02-03), with the reactions of “wow, wow, wow.” See below CNBC’s Rick Santeli read the headline in disbelief.

The February 2023 “wow” jobs report showed the unemployment rate plunged to 3.4% – matching the lowest in 54 years – from 3.6%, while the payrolls report showed the addition of 517K jobs, the highest since July and far above the highest forecast. Below is the breakdown, and learn more here.

Why was everyone so wrong and surprised? The BLS unveiled a slew of data revisions, which include updating the population controls – which would have the mechanical effect of boosting the labor force – and updating seasonal factors, which further distorted the January nonfarm payroll number – see here. Yes, in other words, they are cooking the books. All, of course, to get more transparency in our economic data. You can see the effects of these data revisions in the chart below.

Other items in this February 2023 jobs report that are not so positive are the labor participation rate which is still way below pre-Covid levels, and the full vs. part-time employment trend is problematic. See these items in the chart below.

But there is something more fundamental going on in the US economy and in many Western economies. We pointed out back in mid-2022 that this coming recession may not come with gut-wrenching job losses. Instead, job losses will be socialized over the entire labor force.

In typical business cycle recessions, unemployment will rise sharply and recover in four to eight quarters – where wages also return to previous levels. In this recession, instead of workers losing their jobs, the losses are being socialized over the entire labor force with wage compression and lower real wages. This has been accomplished by the efforts of central bankers via currency debasement – i.e., the 40-year high inflation rates.

An example of the compression of wage dispersions between classes of workers has become a trend. The supervisory class,whicht usually have better wages, is rising slower relative to the non-supervisory roles in business. See this in the chart below and learn more here.

Some may think this wage compression between supervisor and non-supervisory roles is good. If the dispersion is too excessive, perhaps. But if not, it will destroy any merit-based wage growth leading to workers unwilling to take responsibility roles and hence could hurt overall productivity – the key determinant in improving living standards.

Here is another example of the socialization of the labor force in America. Average hourly earnings for all employees on US private nonfarm payrolls increased by 4.4% from a year earlier in January of 2023, after an upwardly revised 4.8% rise in the prior month and slightly above market estimates of 4.3%. It was the smallest annual growth in average hourly earnings since August 2021. See below a comparison of YoY US Average Hourly Earnings vs. the Core CPI.

What this above chart shows is that American labor wages are not keeping up with inflation – leading to lower standards of living – learn more here about the collapsing wage growth.

Wage compression of work classes and overall real wage decline is leading us to the socialization of the American workforce. It will have real effects on every American – though you may have a job, your standard of living will change to the point it will force changes in your life – “You will own nothing, and you will be happy.”

By Tom Williams

Right Wire Report
Right Wire Reporthttps://rightwirereport.com/
Right Wire Report was a group of concerned citizens who took action to promote traditional values and work for a better America.

Katie Porter Syndrome: Toxic Feminism 101

“Katie Porter Syndrome” is a pathology inflicted upon Congressional staffers, the media, and, if the patient gets herself elected governor, all of CA.

The Unique European Social Contract: Effectiveness Over Values

American conservatives often ground their political stances on social issues. The European conversation centers on an effectiveness assessment.

Trump’s Middle East Triumph is Worth Celebrating Even As Peace Remains Elusive 

President Trump’s bold foreign policy defies globalist appeasement, showcasing unwavering American strength and decisive leadership on the world stage.

Are conservatives fighting a fiction of woke?

Wokery, it hurts to say it, is too disorganized to have an organized cosmology or doctrine of metaphysical belief.

Illinois Democrat Offenders Reveal Party

The crime of J.B Pritzker and Brandon Johnson in this episode of American history is called subversion at the least , but could be as serious as treason.

Katie Porter Syndrome: Toxic Feminism 101

“Katie Porter Syndrome” is a pathology inflicted upon Congressional staffers, the media, and, if the patient gets herself elected governor, all of CA.

Biden Undergoing Radiation, Hormone Treatment for Prostate Cancer

Former President Biden has begun receiving a combination of radiation and hormone treatments for prostate cancer, spokesperson announced.

Gaza Citizens Begin Returning Home Amid Cease-Fire

Palestinians began returning to their homes on Oct. 11 as the cease-fire between Israel and terror group Hamas got underway.

Homan Says DOJ Probing Funding Behind ‘Organized’ Attacks on ICE

Border czar, Homan said DOJ launched an investigation into funding for what he called “organized” attacks on federal immigration enforcement agents.

First Lady’s Effort Helped Reunite 8 War-Displaced Children With Their Families

First lady Melania Trump said 8 children impacted by the fighting between Ukraine and Russia were reunited with their families on Oct. 9.

Trump Admin Agrees to $20 Billion Rescue Plan for Argentina

The U.S. government has finalized a $20 billion economic rescue plan for Argentina, Treasury Secretary Scott Bessent announced on Oct. 9.

Trump Says He May Invoke Insurrection Act in Portland If Necessary

President Donald Trump on Oct. 6 said he may consider invoking the Insurrection Act in Portland, Oregon, if necessary.

Trump: All Medium, Heavy Duty Trucks Entering US Will See 25 Percent Tariff on Nov. 1

President Trump announced on Monday that all medium and heavy-duty trucks entering the United States will see a 25 percent tariff starting on Nov. 1.
spot_img

Related Articles

Popular Categories

MAGA Business Central