CV NEWS FEED // Economic data released on Friday shows higher unemployment and the three primary stock market indices all down as analysts warn that the world may be entering another serious recession.
Political commentator Collin Rugg pointed out in a Friday morning X (formerly Twitter) post that the American unemployment rate has risen to 4.3%, “way above the 4.1% projection.”
“This is the highest unemployment rate in the U.S. since late 2021,” Rugg noted, adding that the economy added “just 114,000 jobs in the month of July.”
FOX Business noted in a broadcast that the government had projected 175,000 jobs.
Also in his post, Rugg indicated that the stock market is “reacting” to the new jobs report.
Three major stock indices, the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite are all down – by 2.5%, 1.9%, and 3.3% respectively.
“Intel plummeted nearly 30% after they announced they missed on earnings and were suspending dividends,” Rugg wrote. “They also announced they were slashing 15% of their staff.”
The Washington Post economics columnist Heather Long wrote on X that the alarming new unemployment numbers represent a “big jump up from 3.5%” one year ago. “The July jobs report has triggered the ‘Sahm Rule’ indicating we could be in the early stages of a recession.”
MarketWatch has described the rule, named after economist Claudia Sahm, as a “recession indicator widely followed on Wall Street.”
Long wrote that it is still “possible this time is different” and recession is avoidable. “But this is a big warning sign that the job market (and possibly broader economy) is really slowing fast.”
Furthermore, observers scrutinized the report that the economy gained 114,000 jobs in July.
Economist E.J. Antoni, Ph.D., pointed out that while foreign-born workers are experiencing a jobs gain, American-born workers are experiencing a significant jobs loss.
“Over the last year, native-born Americans have LOST 1.2 million jobs while foreign-born employment has increased 1.3 million,” Antoni wrote on X. “[W]e’re just swapping out American workers at this point, not growing the pie for everyone.”
In June, CatholicVote reported on the vast discrepancy between job prospects for American-born and foreign-born workers:
The federal government study showed that during [May] alone, the number of employed native-born workers decreased by 663,000 while the number of employed foreign-born grew by 414,000.
Also per the BLS report, “there were only 971,000 more U.S.-born Americans employed in May 2024 compared to May 2019 prior to the pandemic,” Steven Camarota, Ph.D., Director of Research for the Center for Immigration Studies (CIS) reported Monday.
The number of employed immigrants, meanwhile, “increased by 3.2 million,” he noted.
>> ALMOST NO JOB GROWTH FOR AMERICANS, BUT VAST JOB GROWTH FOR MIGRANTS <<
