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A recent analysis reveals a troubling trend in the U.S. labor market: while private sector jobs are disappearing at an alarming rate, the federal government continues to expand its workforce. This discrepancy has raised concerns among economists and policymakers about the implications for economic growth and the overall job market.

According to the latest data, the private sector is facing significant job losses, with many industries experiencing layoffs and hiring freezes. As businesses struggle to navigate the ongoing challenges of the Biden-Harris economy, many have been forced to downsize, leading to a growing number of unemployed workers.

In stark contrast, the federal government is adding more jobs to its payroll. Recent reports indicate that the number of federal employees has been steadily increasing, reflecting a trend toward a larger government presence in the labor market. This expansion raises questions about the sustainability of such growth, especially as private sector job opportunities dwindle.

The October jobs report also saw employment gains in August and September be revised down by 81,000 and 31,000, respectively, bringing the number of jobs added for the months to 78,000 and 223,000, according to the BLS. Meanwhile, unemployment has risen substantially since April 2023 from 3.4% to 4.1%, with the increase prompting the Federal Reserve to cut the federal funds target range by 0.5%.

The impact of these job losses is felt most acutely in sectors that are traditionally considered pillars of the economy, such as manufacturing and retail. As companies streamline operations to cope with economic pressures, the prospects for workers in these fields remain bleak.

The economy was dogged by strikes in the third quarter of 2024, with tens of thousands of dock workers and Boeing airplane machinists ceasing work. Hurricanes Helene and Milton also could have reduced job growth by roughly 50,000, according to the Economic Policy Institute.

Relatedly, the disappointing employment gains under the Biden-Harris administration could worsen Vice President Kamala Harris‘ already weak standing with voters on the economy, as 54% of registered voters trust Trump to deal with the economy while just 45% trust Harris, according to the October Gallup poll. Inflation rose from 1.4% when President Joe Biden took office in January 2021 to approximately 9% in June 2022, and now sits at 2.4%.

Critics argue that an expanding federal workforce will only exacerbates the nation’s economic challenges. They contend that government jobs do not contribute to economic growth in the same way that private sector employment does, as federal positions are often funded by taxpayer dollars rather than generating revenue through goods and services.

Furthermore, as private sector workers find themselves without jobs, the growing federal workforce could strain public resources and lead to increased government spending without corresponding increase in revenue — and additionally create incentive for increased taxes and audits from the IRS.

The higher the percentage of Americans employed by the U.S. government, the more control the government has over its peoples.

Once more, you have been warned!