The United States economy suffered a whopping 2.5 million job losses in January despite efforts by the corporate media to try to spin the numbers in Democrat President Joe Biden’s favor.
The mainstream media praised Biden’s economy while cheering employment figures showing that the U.S. saw a “gain” of 517,000 jobs last month.
According to reports and the St. Louis Federal Reserve, however, these reports are false.
The Fed revealed that Biden’s economy actually lost 2.5 million jobs in January.
“The Not Seasonally Adjusted print for monthly change in Nonfarm Payrolls was -2.5 million jobs,” economist Rich Dvorak said of the jobs numbers.
“That means the headline +517K employment gain reported in January was driven entirely by a +3 million seasonal adjustment.”
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. pic.twitter.com/4yEdctxpAO
— Rich Dvorak (@RichDvorakFX) February 3, 2023
Financial advisor Angus Davis also broke down how the media spun the numbers:
For those who mocked "community adjusted EBITDA," I give you, the January nonfarm payroll report:
– loss of -2.5 million jobs… 📉😔
+ abracadabra🪄"seasonal adjustment" of +3 million
= Presto! ✨+517k jobs ✨ (adjusted) 🥳 https://t.co/W4nLnm6ij0
— Angus Davis (@angusdav) February 3, 2023
Several economists have been weighing in on how the number of seasonal jobs losses was twisted to show “gains.”
What actually happened
– 2.5 million people lost their jobs in the post-
– BLS said 3 million would have been a normal seasonal adjustment.
— Bob Hyneman (@BobhynemanUSA) February 4, 2023
Zero Hedge reported:
And with the unemployment rate plunging to 3.4% – matching the lowest in 54 years – from 3.6%, while the payrolls report showing the addition of 517K jobs the highest since July, and far above the highest forecast – in fact, a record 9-sigma beat to median consensus, the shock was merited as today’s report was indeed a blowout.
But why: what happened that everyone was so wrong?
A couple of things.
First, as we warned yesterday, today 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 (this is key as readers will read shortly).
This is indeed what happened: