Representative Kevin Brady, of Texas, on Friday denied the May job report of “incompatibility with expectations” and accused President Joe Biden’s policy of an economic outlook that “reflects the stagnant 1970s.”
Brady, the best Republican on the Home Affairs Committee, blamed the slower-than-expected recovery on $ 300 a week in federal unemployment benefits and his enforcement action in January, which made it easier for people who felt uncomfortable returned to work due to concerns about the safety of the coronavirus to collect benefits.
Biden sends the message “stay home instead of accepting the right job offer,”
“I … put this slower job recovery at the foot of President Biden’s policies.”
REPORT ON WORKERS MISS ESTIMATES WITH ADDED 559,000 WORK RATES, UNEMPLOYMENT FALLS TO 5.8%
The Department of Labor said in its Friday report that employers added 559,000 jobs last month and the unemployment rate fell to 5.8%, missing Wall Street’s expectations of a profit of around 650,000. Still, it has improved significantly since April, when the economy added a revised 278,000 jobs. seats – much less than the forecast of 1 million by Refinitiv economists.
Biden on Friday called the job report “great news” and said it was proof that his economic vision was working. He has doubled his call for additional federal spending through his multibillion-dollar infrastructure and social security programs known as the American Family Plan and the American Work Plan.
“None of this success is a coincidence,” Biden said during brief remarks in Rehoboth Beach, Delaware. “It’s not luck … It’s not a small part of the bold action we’ve taken with the American rescue plan. It’s progress that brings our economy out of the worst crisis in 100 years.”
BIDEN USES WEAKER – AN UNEXPECTED JOB REPORT IN TOUT ECONOMIC PROGRAM MAY BE UNEXPECTED
But Brady said it was time for Biden to give up his “obsession with more emergency spending and endless government scrutiny.”
“Here’s another job report that goes far beyond expectations,” said Brady, who called the previous job report in April “catastrophic.” Long-term unemployment in America is higher now than when the pandemic began and the involvement of the workforce reflects the stagnant 1970s.
“People don’t come out of the corridors to work, even with record jobs.”
U.S. companies have had a hard time finding workers because the additional $ 300 a week unemployment benefit has encouraged many to stay home, according to Republicans. At least 25 countries have announced plans to end benefits earlier than September.
The labor force participation rate has changed slightly to 61.6% and remains between 61.4% and 61.7% since last June. The reading was 1.7 percentage points lower than in February 2020. The average hourly earnings rose 15 cents to $ 30.33, while the average working week held 34.9 hours for the third month in a row.
Economists say the labor market recovery may continue to be below its potential until the benefits fade away.
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Megan Henny and Jonathan Garber of Fox Business contributed to this report.