Source: Jin10 Data

Fed Chairman Powell's remarks at a press conference early this morning have attracted special attention from the media. It is said that his statement is no different from admitting that the Biden administration is manipulating employment data.

At the press conference after the FOMC meeting, a Bloomberg reporter asked Powell to comment on the labor market situation. Powell replied to the reporter's question, saying that two years ago the labor market was "hot." Now it has returned to "normal," which is largely due to the "labor supply brought by immigrants" (meaning that illegal immigrants are the main reason for employment growth, wage reduction, and overall inflation reduction, which is a claim made to mitigate the call of most Americans to stop illegal immigration).

However, things became very interesting when Powell discussed the demand side of the labor market. He talked about the decline in resignations, job vacancies, and wage declines, but more importantly, the unemployment rate rose from 3.4% to 4.0%, obviously contrary to the red-hot employment data. Powell summarized all of this as strong employment creation, but at the same time warned that "there is a view that employment levels may be a bit overblown."

Although Powell immediately realized what he had said and tried to cover it up by adding that "employment is still strong," suddenly the whole strong argument for the labor market collapsed because if the Biden administration would lie at a certain point in the employment report, it would lie in any part of the report.

As Edward Snowden pointed out, what is most shocking is that he "has never seen the Fed chairman publicly accusing the White House of manipulating employment data, but we now see it."

Financial blog Zero Hedge added, "You will understand that with a little effort, digging deep into its pure and false surface, every so-called 'strong'employment report is a disaster. Although we expect this scam to continue indefinitely, at least until the November election, when all truths about the ugliness of the labor market will suddenly be revealed, making the new president take office in an economic crisis, but today, it is not someone else, it is the chairman of the Federal Reserve who admits that the Biden administration is manipulating employment data, and we are shocked."

"Zero Hedge pointed out that last Friday's non-farm employment report was a recent example, although the institutional survey showed that 272,000 "jobs" were added, but this number also includes holders of multiple jobs; excluding these, it can be found that the actual number of "employed" workers has dropped sharply by 408,000. This also means that the gap between the upward-leading institutional survey employment data and the stagnant household survey data (which calculates the actual number of employed workers) has reached an astonishing 9 million, the largest gap ever.

However, in a situation where the overall number of employed people decreased by more than 400,000, the non-farm report showed an increase of nearly 300,000 jobs. How was this achieved? This involves another propaganda slogan that the US Bureau of Statistics often abuses-"birth/death adjustment." Zero Hedge said that this is a statistical fuzzy factor. It is a completely subjective assumption of a group of pro-Biden bureaucrats about how many new businesses (or destructions) the US economy has at any given time, and it is used to calculate employment growth in any specific month.

In May, birth/death adjustments (recently exposed by Bloomberg) "added" 231,000 jobs to the pre-seasonally adjusted numbers. What is more shocking is that in the past year, the birth/death adjustment has led to 56% of "employment growth", that is, 1.9 million statistical "new jobs", while according to data from the Labor Statistics Bureau, there has been a total of 3.4 million "new jobs" created during that period.

Zero Hedge said that although people can debate about the quantity of employment reports, the quality is indisputable: it is a huge disaster.

"As we learned in May, no matter how much actual increase in employment (again, this does not refer to jobs) is, what we know is that the trend of full-time workers converting to part-time workers still continues. In May, 625,000 full-time jobs were lost, but they were offset by 286,000 part-time jobs... This is not a new trend. In fact, in the past year, the United States has lost 1.2 million full-time jobs and replaced them with 1.5 million part-time jobs.

"Finally, there is a data point that is worth noting, which we first emphasized more than a year ago, and it has since become the biggest political issue involving the labor market: since 2018, the United States has created zero domestic jobs, and all employment growth has gone to foreign-born workers. As Standard Chartered Bank confirmed last week, almost all of these are illegal immigrants."

Editor/tolk