It may come as no surprise to those familiar with the current economic situation that the job gains reported by the Biden administration for January are misleading.
According to recent data, the economy did not see an increase of 517,000 jobs but instead a loss of 2.5 million jobs.
It appears that the Biden administration’s figures did not take into account the seasonal adjustment.
As explained by economic advisor Rich Dvorak on Twitter:
The Not Seasonally Adjusted print for monthly change in Nonfarm Payrolls was -2.5 million jobs. That means the headline +517K employment gain reported in January was driven entirely by a +3 million seasonal adjustment. https://twitter.com/richdvorakfx/status/1621532554192105472?s=46&t=H6xPKoKdkue-TR_cl4tTHg – Rich Dvorak
According to MRCTV, Dvorak’s screenshot originates from the Federal Reserve Economic Data (FRED), which is managed by the Federal Reserve Bank of St. Louis.
The article states that the common knowledge is that holiday workers typically face layoffs in January, sometimes to a lesser extent.
However, if the Biden administration had considered the jobs numbers without seasonal adjustments, the economy would have actually suffered a loss of over 2.5 million jobs in January.
Many Americans who are juggling multiple jobs or struggling to put food on the table may have had doubts about the touted job numbers, which may have been exacerbated by the current state of the economy. However, this skepticism does not seem to be shared by many media outlets. Although it seems that many people’s suspicions were justified as the Biden administration has been caught fudging employment numbers to prop up the state of the U.S. economy in the eyes of the public.