The U.S. economy in April created three quarters of a million fewer jobs than expected.
But that shouldn’t be completely unexpected.
By extending overly generous unemployment benefits, President Biden is paying people not to work. These people are poor, but they are not stupid. If they can get a better deal from the politburo on Pennsylvania Avenue, they will.
And it would seem quite reasonable that some businesses have been spooked by the prospect of huge new tax increases that are on the way to fund the spread of socialism in the form of a total of $6 trillion in spending proposed – $1.9 trillion of it already passed – by Biden.
Just to add to the fun, inflation is probably on the horizon.
Just like Barack Obama did, Biden will lead us out of recession with much slower growth than expected or needed.
According to the Wall Street Journal:
“U.S. employers added a modest 266,000 jobs in April, far short of the 1 million expected among economists, and unemployment rose to 6.1%.
“The slowdown in hiring signaled a potential loss of economic momentum, at least temporarily, as some businesses struggled to find workers and faced supply-chain issues.
“The deceleration came after payrolls rose a downwardly revised 770,000 in March and an upward revision of 536,000 in February, the Labor Department said Friday. Unemployment rose from 6% a month earlier, but more people entered the workforce in April.
“Higher vaccination rates, fiscal stimulus and easing business restrictions are converging to support stronger spending across the U.S. But many businesses are reporting they can’t find enough workers, a phenomenon that could restrain economic growth in the coming months.
“The leisure and hospitality sector, including restaurants, accounted for the bulk of employment creation in April, adding 331,000 jobs. The Labor Department said that reflected an easing of pandemic-related restrictions in many parts of the country.
“Those gains were partly offset by job losses in several other sectors. Temporary-help employment declined by 111,000 last month, manufacturing employment was down 18,000—predominantly in motor vehicles where chip shortages idled some factories. Retail jobs fell by 15,000 and healthcare jobs declined by 4,000.
“Signs of labor-market tightness emerged in Friday’s report.”