US Government Job Numbers Are Not What You Think

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"As the old adage goes, "the truth will out," and for Bob Nardelli, former CEO of Home Depot, the truth about the US job market can no longer be ignored. "It's about time they got honest," Nardelli urges, referencing the government's rosy employment numbers, which he believes are "woefully overstated." 

This article provides outside perspective about how the US government's misleading jobs data have created a false sense of economic security, and that it's time for a dose of reality - one that acknowledges the weaknesses in the labor market and the need for a more nuanced understanding of the country's economic trajectory.

Nardelli appeared on Fox Business and expressed concerns that the country's jobs data is "woefully overstated." He emphasized the need for honesty, citing the upcoming revision from the U.S. Bureau of Labor Statistics, which may lower payroll growth by at least 600,000 jobs.

• The Atlanta Fed has cut its forecast for third-quarter US GDP to 2%.
• Goldman Sachs predicts an adjustment of 600,000 to 1 million jobs.
• Major employers, including healthcare, government, hospitality, and travel, will see adjusted numbers.
• Manufacturing job creation under the current administration ranks 11th.

Nardelli highlighted the recent announcement from Stellantis, a car manufacturer, to lay off 2,500 jobs. He warned that the job market is "tight" and unemployment will continue to rise, as seen in the July jobs report.

President Biden recently touted job creation under his administration, citing nearly 16 million jobs created and average unemployment lower than in 50 years. However, Nardelli attributes much of this growth to a post-COVID bounce-back and warns of an impending increase in unemployment.

As the US economy continues to evolve, it's essential to have accurate and transparent jobs data to make informed decisions. Nardelli's call for honesty echoes the concerns of Federal Reserve Governors, urging the government to provide a clearer picture of the labor market.