The Joe Biden government’s Bureau of Labor Statistics has revised the number of jobs the U.S. economy gained in April and May downward by a combined 110,000. With the announcement of the newest revisions, 10 of the past 15 jobs reports have been revised lower than the initially announced number. In June, the Biden government alleges that job growth again beat expectations, with 206,000 jobs added. However, given the revisions of the prior two months, the true number may be far lower.
According to the latest employment data and the April and May revisions, the U.S. labor market appears to be rapidly cooling. Unemployment has risen to 4.1 percent, the highest since November 2021. Overall, the data suggests a rapidly slowing labor market, which Biden desperately wants to avoid before the 2024 presidential election in November.
The declining economic conditions add pressure on the Federal Reserve to accelerate its projected calendar for cutting interest rates. However, the central bank’s chairman, Jerome Powell, has thus far been reticent to telegraph a rate cut before the November presidential election. Investors—who have been clamoring for the central bank to slash rates—were already pricing in two rate cuts this year, with the first coming in September.
While a rate cut prior to the election could boost economic conditions and serve as a boon to the 81-year-old Democrat, rising unemployment has traditionally coincided with the incumbent president losing re-election. A slew of recent polls following Biden’s disastrously impaired debate performance on June 27 show Biden’s challenger, former President Donald J. Trump, with a commanding lead. Trump’s margin over Biden is currently between four and six percent nationally.