The Bureau of Labor Statistics has released the August jobs report [Data Link Here] showing only 235,000 jobs created in August. Economists and financial analysts were predicting 750,000+.
While the financial punditry are jaw-agape with disappointment, these results are in line with the background data and should not have been a surprise. Within the BLS data you will note the retail sector lost 29,000 jobs, and the leisure and hospitality sector remained unchanged.
Massive inflation and price increases in fuel, gasoline, energy costs and food pricing is slowing down retail purchasing of non-essential goods. The working class are cutting back non-essential purchases and focusing on how to pay for groceries, electricity and gasoline. Connected to this checkbook issue, the working class are not spending on leisure and hospitality. Everyone is focused on making ends meet. Spending decisions are prioritized.
The government COVID subsidies have also created a false bottom. Service sector workers could make more money from COVID bailouts than they could by returning to work. Some families made the decision to stay home, drop the daycare cost for their kids, and actually net a higher overall income position from government relief funds. This dynamic is mostly noted in the lower tier of the income and wage earning employment category.
Government run education, local and state, also saw a drop in jobs of -26,000 simultaneous to kids returning to school. Why did this happen? Well, private sector education gained +40,000 jobs. This is in line with the cultural shift. There is so much COVID propaganda, and manipulation of teaching outcomes as a result of unionized education dictates around COVID, many parents have had enough with the nonsense, mask mandates and indoctrination and are taking their kids out of public schools.
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