A recent tweet on the Democrats’ official Twitter page stated, “Under Joe Biden, the private sector has recovered all of the jobs lost during the pandemic—and added jobs on top of that.”
That statement is only half true, at best.
According to the official jobs numbers from the Bureau of Labor Statistics, private-sector jobs are up by about 140,000 since the low in April 2020, but only 4 in 10 of those job gains occurred on the Biden administration’s watch, while 6 in 10 were recovered during the Trump administration.
While the labor market appears to be going well by some metrics, that’s not the whole story.
Metrics like a nearly half-century-low unemployment rate, high nominal wage gains, and 11.3 million job openings that equal two jobs available for every unemployed person didn’t arise naturally. They were artificially induced through bad government policies that have included a lot of unintended consequences.
Most significantly, 18 months’ worth of bonus unemployment benefits that paid most people more to stay on the sidelines than to work caused millions of people to leave the labor market. Meanwhile, Washington stimulated consumer and business demand for goods and services by flooding the economy with trillions of dollars in so-called COVID-19 relief, about half of which was money printed by the Federal Reserve.
Too few workers is also adding to the inflationary cycle.