Score one for President Biden

| 7:00 pm EDT April 10, 2023
Dear Palmer Report readers, we all understand the difficult era we're heading into. Major media outlets are caving to Trump already. Even the internet itself and publishing platforms may be at risk. But Palmer Report is nonetheless going to lead the fight. We're funding our 2025 operating expenses now, so we can keep publishing no matter what happens. I'm asking you to contribute if you can, because the stakes are just so high. You can donate here.

A quick look at the headlines about Friday’s new jobs report may look disappointing. In fact, many publications appear to bemoan “hiring gradually cooling” (The Wall Street Journal”) or “hiring pace slows” (CNBC). However, the March jobs report is actually good news both for the American economy and the Biden administration.

According to the Bureau of Labor Statistics, U.S. employers added “just” 236,000 jobs in March, a little below economists’ expectations. In the past 12 months, there has been a net gain of 4.1 million jobs, and the new data remains above pre-pandemic norms of 183,000 per month, according to a report from CNN Business. However, the fact that the March report shows a lower jobs gain than the prior two months, does not mean it’s time to say Biden is bad for the economy.

In a White House statement released Friday, President Biden called the news “a good jobs report for hard-working Americans.” This is for good reason: moderation after tremendous jobs growth is needed to lower inflation, a fact that Biden has been saying all along.

Back in May 2022, Biden wrote an opinion piece for the Wall Street Journal, in which he explained that “[w]ith the right policies, the U.S. can transition from recovery to stable, steady growth and bring down inflation without giving up all these historic gains.” He expressed his aim for average monthly job creation to shift from around 500,000 toward 150,000, which would mean the economy is moving into the next phase of recovery.

Sure enough, that’s what is happening. Trying to anticipate worries and criticism nearly a year ago, Biden wrote, “We will likely see fewer record job-creation numbers, but this won’t be cause for concern.” Indeed, Biden emphasized the importance of transitioning from “rapid recovery to stable, steady growth” that would bring inflation down.

This is why Biden is now correct to declare that the new report is welcome news and that it shows “we continue to face economic challenges from a position of strength.” Biden also took the opportunity to remind Americans that “extreme MAGA Republicans in Congress” are promoting policies and employing dangerous strategies. Echoing his recent public warning, Biden called out MAGA as a threat that would “wreak havoc on our economy.” Indeed, under President Biden’s leadership, the U.S. economy was—and still is—solidly on the right track.