“The economy hasn’t added one single job from the 2019 high-water mark. Not one. All the jobs that we have seen gained are recovered jobs that were lost. We’re not yet producing new jobs,” says ADP Chief Economist Nela Richardson on the labor market.
“We are not creating new jobs, in fact, we are still about 4 million jobs short,” Ms. Richardson says.
Wage Increases Are Meaningless Too
“The wage increases are coming on the back of a shrinking wage force, and it’s not being fueled by a productivity enhancement. But driving inflation right now is the input shortages and the labor shortages and not productivity. So, I think wages are going to be a false metric. It’s not driving inflation. And wages are trying to keep up with an economy that is now, um, feeling the effects of all kinds of shortages from different angles,” she said.
The wage increases are not the result of real economic growth!
As far as real inflation numbers, if we used the metrics from the 80s and 90s, the number would be 15%, not 7%, according to some reports.
“The economy hasn’t added one single job from the 2019 high-water mark. Not one. All the jobs that we have seen gained is recovered jobs that were lost. We’re not yet producing new jobs,” says economist @NelaRichardson on the labor market. pic.twitter.com/VxHaA8IGpj
— Squawk Box (@SquawkCNBC) January 12, 2022
Subscribe to the Daily Newsletter
