U.S. job growth is being dominated by just three sectors, and without them, the American economy would have only added 7,000 jobs over the last six months, according to data from the Bureau of Labor Statistics.
The government, private education and health services, and leisure and hospitality sectors have made up the vast majority of growth since June as of November, accounting for 1,110,000 of a net total of 1,117,000 jobs that were added over that period, according to the BLS. Other sectors saw little growth or even losses in jobs, led by the transportation and warehousing sector, which lost 57,800 jobs over the last six months. (RELATED: Jim Jordan Subpoenas Top Asset Managers In Woke Investing Collusion Investigation)
The U.S. added 338,000 government jobs in the last six months, equating to around 30% of total employment gains, according to the BLS. In just November, the government added 49,000 new jobs, bringing the total number of employees to 22,967,000, coming close to the record in the sector of 22,996,000 employees seen in May 2010 during the last uninterrupted census counting.
Similarly, the leisure and hospitality and private education and health services sectors saw gains of 230,000 and 556,000 jobs in the last six months, respectively, according to the BLS. The health care industry has received huge federal funding in the form of health insurance subsidies, with the government giving $1.8 trillion to the industry in fiscal year 2023.
Other industries that have seen job losses in the last six months include professional and business services, information, and retail trade, losing 46,000, 66,000, and 57,800, respectively, according to the BLS. Other industries have seen very small gains, including mining and logging, manufacturing, utilities, and financial activities, adding 1,000, 4,000, 4,400, and 17,000 jobs in the last six months.
Business inflation expectations for Dec are back to Oct level of 2.4% – still firmly above the 2% target, yet Powell & Co. sit on their hands… pic.twitter.com/Ac2o4YxJf4
— E.J. Antoni, Ph.D. (@RealEJAntoni) December 13, 2023
In the past six months, jobs related to services have far outpaced growth in jobs related to goods production, according to the BLS. Over the time period, the U.S. added 1,005,000 service jobs while only gaining 112,000 goods-producing jobs.
Prices have increased 17.2% since President Joe Biden took office in 2021, owing to exceptionally high inflation that peaked at 9.1% year-over-year, while real wages have declined 2.1%. In addition to inflation-related cost increases, businesses are also feeling the effects of the Federal Reserve’s rate hikes, which have increased the cost of credit, hampering growth and hiring.
The gains in government and government-subsidized industries follow huge government spending from the Biden administration, with the U.S. sovereign debt reaching over $33.8 trillion as of Dec. 11, according to the U.S. Treasury Department. When Biden’s failed student loan program is properly accounted for, the federal deficit reached $2 trillion for the 2023 fiscal year, doubling the $1 trillion debt that was spent in the previous year.
The White House did not immediately respond to a request to comment from the Daily Caller News Foundation.
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