Expert Warns Biden’s Job Numbers Paint False Picture Of Economy

In January 2024, the U.S. economy created 353,000 new jobs, much more than economists had predicted. However, according to Euro Pacific Capital’s CEO and chief global strategist, Peter Schiff, things might not be as good as the headline numbers imply.

The White House’s and Schiff’s perspectives on the labor market differ.

President Joe Biden recently cited the jobs data as evidence that America’s economy is the strongest globally. Biden often boasts that he is a job creator, claiming he has created 14.8 million jobs since he took office, conveniently ignoring that most jobs were simply people returning to work after the COVID shutdowns.

In January 2024, 8.1 million people had several occupations, up from 7.8 million the previous year, according to the Labor Department’s most recent jobs report. Notably, the number of people working two full-time jobs increased to 416,000 from 343,000 in January 2023.

The data also showed that the jobless rate remained at 3.7%, far from a multi-decade low.

In January, there were 4.4 million Americans who were part-time workers but would have preferred to be full-time workers; this is an increase from 4 million in the previous year and 3.7 million over the last two.

Economists have described rising involuntary part-time employment as a leading sign of a deteriorating economy.

The Bureau of Labor Statistics reports that in January 2024, the consumer price index rose by 3.1% from the previous year. Although this was more than anticipated, it is still a significant improvement above the 9.1% annual increase that was the highest since 1981 in June 2022.

Schiff, however, is not impressed and calls the most recent CPI data “a disaster.”

Many believe high-interest rates can prevent inflation, and the US Federal Reserve has raised interest rates significantly. The effective federal funds rate is 5.33%, up from 0.08% in February 2022.

Schiff thinks the U.S. central bank is not winning, even though the headline inflation rate has decreased. He said that the inability of the Fed to raise rates further—which, in his opinion, is what it needs to do—means that the most recent CPI report demonstrates that “the Fed has already lost the inflation fight.