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Staggering figures have revealed that more than 1.2million US-born workers lost their jobs last month, while the foreign-born workforce grew by 668,000 – as migrants continue to pour in across the border under the Biden administration.
Data from the U.S. Bureau of Labor Statistics shows that between July and August there was a staggering 1.223 million decrease in the native-born in the labor force – which is an unprecedented low since April. 2020.
The number of US-born workers with jobs had been rising steadily since January, when it stood at 130 million. That figure jumped to 131.1 million in April, before peaking in July at 132.25 million.
Employment in this category fell to 131.03 million in August.
By comparison, the number of foreign-born workers has been on the rise since the start of the year. In January 2023, 28.69 million non-natives were working in the United States, compared to 29.96 million in April and 30.396 million in August.
The most dramatic decline in the number of native-born jobs occurred, unsurprisingly, between March and April 2020, during the first month of the coronavirus pandemic.
Employment fell from 128 million to 111 million in the space of four weeks, equivalent to the loss of 173.24 million jobs.
The period from July to August 2023 was the biggest drop since.
While there can often be a lull in employment during the summer months, as well as the winter period from December to January, this year’s decline is larger than previous periods.
In 2021, between July and August, employment declined by 601,000 US-born.
Likewise, in the same months of 2022, there were 324,000 fewer workers in employment.
Even before the pandemic, according to July and August 2019 data, there were 700,000 fewer native-born people in the U.S. labor force.
Therefore, this year’s negative difference of 1.223 million looks more concerning – bucking the trend of previous holiday lulls.
If we consider the same summer jumps for foreign workers, the opposite trend seems to hold true. Employment increased rather than contracted.
Between the summer months of the pandemic’s first year, employment of foreign-born workers soared – rising by 473,000.
Between July and August 2021, the number of foreign-born workers increased by 237,000, and in 2022, while there was no increase, the decline was marginal – at just 29,000.
The increase in the number of foreign-born people working in the United States this summer, 668,000, marks the largest increase between July and August in the past 10 years. The only July to August period that comes close was at the height of the pandemic in 2020 – 605,000.
While there can often be a lull in employment during the summer months, as well as the winter period from December to January, this year’s decline is larger than previous periods (file image)
What the figures suggest is that there has been zero net increase in jobs created in the country since the Covid economic crash. The labor market is on course to reach the highs recorded in October 2019, when employment stood at 131.72 million.
The trends also appear to show that under Donald Trump, fewer foreign-born people were working in the United States month over month, according to Bureau data.
Comparing numbers for the first three years of each of their terms, the Republican president’s foreign-born workforce grew by 752,000 between August 2017 and 2019.
In contrast, Democrat Biden’s figure between August 2021 and 2023 was 3.943 million.
During the Trump presidency, between July and August 2017, employment for the foreign-born increased by only 82,000.
The figure of 668,000 foreign workers in 2023 is eight times as staggering – in the context of the Biden administration’s control of movement across the US-Mexico border since the end of the pandemic-era Title 42 in May.
Between July and August 2018, employment of foreign-born people increased by 168,000, and the corresponding figure in 2019 was 132,000.
According to Bureau of Labor Statisticsforeign-born persons are those residing in the United States who were not U.S. citizens at birth and who do not have U.S. citizen parents.
Although hiring in August was strong by historical standards, with 187,000 jobs added, employment gains over the past three months have averaged just 150,000, the lowest number since the period from October to December 2019.
The figure of 668,000 foreign workers in 2023 is eight times as staggering – in the context of the Biden administration’s control of movement across the US-Mexico border since the end of the pandemic-era Title 42 in May (image by stock)
Worker quit rates as well as the pace of hiring have also fallen to near or below pre-pandemic levels, while a statistic closely watched by the Fed – the number of job openings for each unemployed – fell in July to 1.51. , the lowest since September 2021.
The decline marks “a distinct cooling in the labor market,” former Boston Fed Chairman Eric Rosengren said. “If this continues, we will likely be at the top of the interest rate cycle.”
The Fed has been raising its benchmark overnight interest rate rapidly since March 2022, but is expected to hold it steady within the current range of 5.25% to 5.50% at its September 20 meeting.
New economic projections released at the end of this meeting will show whether policymakers continue to expect a further rate hike this year, but after the latest jobs data, investors have upped their bets against such a prospect. .
Acting U.S. Labor Secretary Julie Su said the slower pace of job growth showed the economy was moving from a “stealthy” recovery after pandemic job losses to a “ continuous, stable and regular growth”.
She said: “It’s really what you want to see if you’re looking for a ‘soft landing’.
She was referring to Fed policymakers’ hopes that inflation, still high, could be brought back to the central bank’s 2% target without forcing the economy into recession or causing high rates of unemployment.
Although the jobless rate rose three-tenths of a percentage point to 3.8 percent in August, it remained well below the 5 percent-plus rates that have been normal in the United States since World War II. world.
Moreover, this development is explained by an increase of more than 700,000 in the number of available workers – a constructive dynamic which can allow employment to develop without inflationary pressure on wages.
Fed officials hoped to see the labor market calm, torn between the fact that higher wages and a good labor market are improving the economic situation of workers and families, and the fear that maintaining hiring conditions solids does not keep inflation high.
At least so far, the Fed is also making gains there, with data since the July meeting showing a slowing in the pace of price increases and a decrease in the magnitude of inflation.