ADP Research Institute’s leading economist dismissed the absurdity of the leftist narrative that the United States has experienced rapid job growth.
ADP Chief Economist Nela Richardson joined CNBC Squawk boxAfter the shock news of Jan.12, inflation rose by 7 percent annually in December. It was the highest point since 1982. After noting that real wage earnings, “which are negative,” Richardson said whatever wage increases the media has been propping up as a bellwether for a peachy economy was driven by “labor shortages.” Richardson then dropped the hammer: “The economy — and this is an important point — hasn’t added one single job from the 2019 high watermark. There is not one. All the jobs that we have seen gained are recovered jobs that were lost.” She continued: “We are not yet producing new jobs. In fact, we’re still about nearly four million jobs short. So these wage gains are coming on top of a shrinking workforce.”
So much for CNN’s recent whitewash of poor December jobs numbers.f “Even so,2021 is a record year for job growth.America created 6.4 million new jobs in the last year. This is the highest number of American jobs since 1939, when records began. Every single month brought jobs gains,” CNN wrote earlier this month. Yikes. [Emphasis added.]
Richardson also dismissed another media point, that wage increases were the drivers of inflation. “[Wage gains are]Productivity enhancements are not fueling inflation. What’s driving inflation right is now is the input shortages and the labor shortages, and not productivity,” Richardson said. “[W]Ages are going to be an inaccurate metric. It’s not driving inflation.”
Richardson dished out more red pills to CNBC and it’s viewers about the dilapidated state of the economy:
[T]It is troubling that so many people remain on the margins. That the labor force participation hasn’t returned … despite record numbers of job openings. So, we’re not in a situation where there isn’t demand for labor. That is what we know. There isn’t a supply for some reason.
Richardson also even hinted that companies may turn to automation technology to deal with ongoing labor shortages: “Companies are going to pay higher wages and make do with fewer workers,” she said. “That’s what I’m watching out for, that companies will actually adjust to these wage pressures. They’ll automate the functions that they can automate, and people will be left further and further behind in a more digitized economy.”
Conservatives are being attacked.For more information, contact ABC News (818-460-7477 or CBS News (212- 975-3247) and NBC News (220) 664-6192 to demand that they reveal the truth about President Joe Biden’s terrible economy and labor shortages.
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