The Truth Behind America’s Low Unemployment Rate.
Recent studies have shed light on the real state of America’s seemingly low unemployment rate, revealing that millions of migrants have entered the country under President Joe Biden. While jobs reports may seem strong each month, Federal Reserve Chairman Jerome Powell himself has expressed dissatisfaction with the incoming data. One major reason for the skewed figures is because migrants secured an overwhelming 75% of all new jobs created in the United States in 2019.
As the workforce participation rate among American men continues to fall, they are struggling to compete with people who are willing to accept lower pay for the same positions. This has led to a decline in workforce participation rates among both high school graduates and those with bachelor’s degrees in the prime age range of 25-54. The study conducted by Steven Camarota at the Center for Immigration Studies concluded that workforce participation rates among all prime-age men in America plummeted 8 percentage points over a 64-year period.
Despite labor force participation levels returning to pre-pandemic levels, the rate remains near historical lows relative to other peaks in the business cycle. Over 300,000 Americans have left the workforce in the past year alone, while 637,000 migrants have taken their place. Today, three out of every 19 people living in the US were not born in the country, with our foreign-born population surpassing 51.6 million.
Biden’s policies have made it easier for migrants to fast-track their way to immigration status, prioritizing them over natural-born citizens under the guise of diversity. However, the truth is that companies are able to pay immigrants less than American workers.
Another aspect contributing to skewed jobs data is the growing public sector. The public sector has been rapidly expanding under Biden’s administration, increasing at the fastest pace in 34 years. These positions are now funded by taxpayers and do not contribute to GDP growth. Meanwhile, private sector growth has slowed from 4.3% in 2022 to 2.3% in 2023.
Government hiring rose a full percentage point from 2022 to 2023, marking the highest annual increase since 1990. President Biden has plans to continue expanding government agencies, especially as they aim to hunt down citizens for taxes and create social programs to support the increasing number of Americans who are falling beneath the poverty line, as well as the 8 million illegal migrants.
While Biden continues campaigning on his strong job growth, it is essential to recognize that this growth has been fueled by an influx of migrants replacing American workers and a rapidly expanding government sector funded by taxpayers. Read more about the ongoing changes in America’s workforce at ArmstrongEconomics.com.