- The jobs report for June showed that the U.S. gained 4.8 million jobs back last month and the unemployment rate fell to 11.1% from 13.3% in May.
- President Trump touted the report in a press conference, saying the U.S. is seeing record-breaking numbers and that economy was coming back strong.
- However, as many pointed out, unemployment is still the highest its been since World War II and over 1 million people are still filing for unemployment every week.
- Others also noted that the data from the report is from the week of June 12 and does not show the recent business closures made by governors in several states reimposing restrictions due to coronavirus spikes.
- Economists have warned that the renewed closures in some states and the fact that many other states have slowed their planned reopenings will result in more layoffs.
June Jobs Report
The U.S. economy gained 4.8 million jobs in June and the unemployment rate fell to 11.1% from 13.3% the month before, according to a monthly report released by the Bureau of Labor Statistics (BLS) Thursday.
Following the publication of the June report, President Donald Trump touted the new numbers during a press conference Thursday morning.
“Today’s announcement proves that our economy is roaring back,” he said. “It’s coming back extremely strong.”
“This is not just luck, what’s happening. This is a lot of talent,” he continued. “All of this incredible news is the result of historic actions my administration has taken working with our partners in Congress to rescue the U.S. economy.”
Trump also repeatedly claimed the job gains and employment numbers provided in the BLS report were record-breaking on multiple fronts.
However, many have noted that the only reason the U.S. is seeing record-breaking job gains is because it has experienced the record-breaking job losses.
That fact has even been echoed by members of Trump’s administration, including Treasury Secretary Steve Mnuchin, who acknowledged that unemployment is still extremely high by historical standards at the press conference Thursday.
Throughout the pandemic, American’s have seen unemployment rates similar to that of the Great Depression. Even now, unemployment is still the highest its been since World War II.
What the Data Shows
There are still over 17 million American’s unemployed, according to the BLS report. While it is true that we gained 4.8 million jobs back last month, more than 1 million people filed for unemployment every week in June including this past week, which saw 1.4 new claims.
There are also a number of other indicators in the BLS data that show that American’s are hurting.
For example, while the number of people temporarily laid off decreased by 4.8 million, the number of permanent job losses actually increase last month, rising by over half a million to 2.9 million total.
That suggests that many of the people going back to work are those who were furloughed during the shutdowns, meaning that the economy is simply getting back jobs it had temporarily lost, not adding or creating new jobs.
That fact was also noted by numerous Twitter users who sought to point out the holes in the president’s remarks.
“No, Trump did NOT create 4.8 million jobs in June – some people went back to their old jobs,” one user wrote.
Many other users also compared the unemployment rates of Black people and other people of color to that of white people, likely in response to Trump championing minority job growth while speaking at the press conference Thursday.
“African-American workers, really happily for me, made historic gains, with 400,000 jobs added last month alone and that’s a record,” he said. “Hispanic employment is up by 1.5 million jobs, a record by a lot.”
However, the BLS data minority unemployment has consistently remained higher than white unemployment— especially for Black people. In fact, according to a report from Reuters, the gap in U.S. Black and white unemployment rates is widest its been five years.
“Jobless rates for both groups fell in June, but the rate for whites came down at a much faster rate. The white unemployment rate fell 2.3 percentage points to 10.1% from 12.4%, while the rate for Blacks dropped 1.4 points to 15.4% from 16.8%,” the report said.
According to the BLS data, unemployment fell from last both groups in general, the unemployment rate among Black men over 20 actually rose from May to June, growing from 15.5% to 16.3%
While the discrepancy between Black and white unemployment was the most significant, white unemployment is still quite a bit lower than Hispanic unemployment which was 14.5% last month, and Asian unemployment, which was 13.8%.
Those numbers appear to support the claims of numerous experts who have said that people of color have been disproportionately hurt by the economic crisis.
“Disproportionately, the layoffs have been in lower wage occupations, in lower wage positions,” Gary Burtless, a labor economist at the Brookings Institution told the New York Times. “That has disproportionately affected African-Americans and Hispanics.”
While the BLS report does show the discrepancies between Trump’s rosy outlook and reality, it is only part of the picture.
There are several issues with the BLS data, and the agency has made readily apparent. It has repeatedly warned that the actual unemployment numbers are higher than what has been reported because of flaws in the data collection process. On Thursday, the BLS said that it believes the official unemployment rate for June is actually a whole percentage point higher.
But that is not the only problem. Arguably the biggest issue is that the data in this report was taken the week ending June 12, and since then, a number of states have shut down businesses again in response to the recent spikes in coronavirus cases.
Just in the last week, the governors of Florida and Texas have shut down bars and other commercial activities. California has stopped indoor restaurant dining and closed movie theaters in most major cities. Arizona has also shut down water parks, bars, and gyms.
Numerous other states have postponed their planned reopenings. As a result, some workers are now reportedly getting laid off for the second time.
Those closures and delays are expected to grow as cases continue to surge. On Thursday, the U.S. reported a new record of 50,000 coronavirus cases on a single day. New cases have risen a whopping 50% in the last month, according to the Washington Post
With those numbers rising and states with huge economies like Texas and California reimposing restrictions, many economists are worried that Americans will see more layoffs.
“The virus drives the economics,” Betsey Stevenson, a member of former President Barack Obama’s Council of Economic Advisers told the Times. “We’re not going to have people going back to work. In fact, we’re going to see more people staying home.”
See what others are saying: (NPR) (The New York Times) (The Washington Post)
After Uvalde, Politicians, Public Figures, Gun Violence Survivors, and More Call For Change
“When are we going to do something?” Golden State Warriors Coach Steve Kerr asked during an emotional plea at a press conference.
Uvalde Shooting Kills 21 People
Democratic politicians, activists, and many others are calling for gun reform in the United States after 19 children and two teachers were killed in a Tuesday shooting at Robb Hill Elementary School in Uvalde, Texas.
The 18-year-old suspected gunman was reportedly killed by officers. The massacre marks the 27th school shooting of 2022, according to Education Week.
It also comes just a week and a half after 10 people were killed in a shooting in Buffalo, New York, and another shooting in a Southern California church left one person dead and several others injured.
Sen. Chris Murphy (D-Ct.) spoke fervently on the Senate floor Tuesday, slamming his colleagues for refusing to pass gun control legislation that could prevent future shootings.
“What are we doing?” he asked of his fellow lawmakers. “Why do you spend all this time running for the United States Senate? Why do you through all the hassle of getting this job, of putting yourself in a position of authority, if your answer is, as the slaughter increases, as kids run for their lives, we do nothing? What are we doing?
“Why are you here if not to solve a problem as existential as this?” he continued. “This isn’t inevitable. These kids weren’t unlucky. This only happens in this country.”
“And it is a choice. It is our choice.”
President Joe Biden likewise urged action by supporting the now-expired assault weapons ban.
“We can do more. We must do more,” he added.
Public Figures And Shooting Survivors Speak Out
The demands for change spread far past political figures. Golden State Warriors coach Steve Kerr took time out of a pre-game press conference to passionately plead for common-sense gun control. He specifically called on Senators to vote on H.R. 8, a background check bill previously passed in the House.
“When are we going to do something?” Kerr asked while slamming his hands on the table.
“I ask you, Mitch McConnell, I ask all of you senators who refuse to do anything about the violence and school shootings and supermarket shootings. I ask you: Are you going to put your own desire for power ahead of the lives of our children and our elderly and our churchgoers?” Kerr continued. “Because that’s what it looks like.”
He went on to say that Americans, who largely support background checks, are “being held hostage by 50 Senators who refuse to even put it to a vote.”
Grammy Award-winning musician Taylor Swift shared his message, adding that she is filled with “rage and grief” not just from the shootings, but by “the ways in which we, as a nation, have become conditioned to unfathomable and unbearable heartbreak.”
“It doesn’t have to be this way,” tweeted David Hogg, an activist and survivor of the 2018 school shooting in Parkland, Florida. “The way we will make this time different is by Americans on both sides of the aisle collaborating on what we can agree on to get something done even if small. Kids are dying we have to do something.”
Manuel Oliver, the father of one of the children lost in the Parkland shooting, slammed the inaction of politicians in an interview on CBS News.
“The families don’t need your freaking hearts,” Oliver said. “They need their kids, and the kids are not there anymore. So I feel very angry and offended and I just don’t understand how come a whole society doesn’t wake up.”
People impacted by the 2012 Sandy Hook shooting also spoke out, including Mary Ann Jacob, who worked as a librarian at the school during the shooting.
“I’m so sorry those deaths did not change our world,” Jacob wrote.
Texas-based figures felt especially compelled to stand up as the tragedy hit so close to home. Academy Award-winning actor Matthew McConaughey, whose hometown is Uvalde, wrote a message on social media asking Americans to “take a longer and deeper look in the mirror and ask ourselves, ‘What is it that we truly value?’”
“We have tragically proven that we are failing to be responsible for the rights our freedoms grant us,” McConaughey wrote.
“Action must be taken so that no parent has to experience what the parents in Uvalde and the others before them have endured.”
Fellow Texas native Selena Gomez also took to social media to argue for action.
“If children aren’t safe at school where are they safe? It’s so frustrating and I’m not sure what to say anymore,” the “Only Murders in the Building” star wrote on her Instagram story. “Those in power need to stop giving lip service and actually change the laws to prevent these shootings in the future.”
We make it a point to not include the names and pictures of those who may have been seeking attention or infamy and will not link out to websites that might contain such information.
Lawmakers Call For Action as Oil Companies Post Record Profits Amid Rising Gas Prices
A recent analysis from the Center for American Progress found that the top five oil companies earned over 300% more in profits during the first quarter of 2022 than the same period last year.
As Consumer Prices Climb, Big Oil Profits
American oil companies are facing increased scrutiny over profiteering practices as gas prices continue to surpass record highs driven by Russia’s ongoing war in Ukraine.
Last week, costs surged to above $4 per gallon in all 50 states for the first time ever, according to the auto club AAA. Prices are currently averaging over $4.59 per gallon nationwide, which is 50% higher than they were this time last year.
In addition to consumers hurting at the pump, there are also rising concerns for industries that rely on fuel and oil like trucking, freight, airlines, and plastic manufacturers.
To account for high prices, some in sectors have responded by ramping up prices further down the supply chain to account for costs, putting even more of a burden on consumers to pay for everyday items.
But as Americans struggle with sky-high gas prices at a time of record inflation, recently released earnings reports show that many of the world’s largest oil companies thrived in the first quarter of 2022.
ExxonMobil more than doubled its earnings from the same period last year, reporting a net profit of $5.5 billion. Meanwhile, Chevron logged its best quarterly earnings in almost a decade, and Shell had its highest earnings ever.
According to a new analysis conducted by the Center for American Progress, the top five oil companies — including the three mentioned above — earned over 300% more in profits this quarter than during the same time last year.
“In fact, these five companies’ first-quarter profits alone are equivalent to almost 28 percent of what Americans spent to fill up their gas tanks in the same time period,” the report noted.
Per Insider, for at least four of those companies, that growth marks a tremendous increase in profits from even before the pandemic.
Lawmakers Ramp-Up Efforts to Reduce Prices
To address these startling disparities, federal lawmakers have moved in recent weeks to increase pressure on oil companies and take steps to lower prices.
On Thursday, the House of Representatives passed a bill proposed by Rep. Katie Porter (D-Ca.) that aims to reduce gas prices. The legislation, called The Consumer Fuel Price Gouging Prevention Act, would give the president the authority to issue an Energy Emergency Declaration that would be effective for up to 30 days with the possibility of being renewed.
In that emergency period, it would be illegal for anyone to increase gas or home energy fuel prices to a level that is exploitative or “unconscionably excessive.”
The proposal would also give the Federal Trade Commission the power to investigate and manage instances of price gouging from larger companies and give state authorities the ability to enforce price-gouging violations in civil courts.
The bill, which has already seen widespread opposition from Republicans and extensive lobbying from pro-oil interest groups, faces an uphill battle in the 50-50 split Senate.
During debate on the act Thursday, Rep. Porter delivered an impassioned speech accusing oil companies of driving their record profits by using their market power to unfairly increase prices.
“The oil and gas industry currently has more than 9,000 permits to drill for oil on federal land, but they are deliberately keeping production low to please their investors and increase their short-term profits,” she said. “Even when the price of crude oil falls, oil and gas companies have refused to pass those savings on to consumers.”
“Let me be clear: price gouging is anti-capitalist,” Porter continued. “It exploits a lack of competition, which is a hallmark of capitalism. It is an effort to juice corporate profits at the expense of customers. Energy markets are reeling because of Russia’s invasion of Ukraine. Big oil companies, however, are using this temporary chaos to cover up their abuse.”
See what others are saying: (The Washington Post) (Vox) (NPR)
Lincoln College to Close for Good After COVID and Ransomware Attack Ruin Finances
Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.
One of the Only Historically Black Colleges in the Midwest Goes Down
After 157 years of educating mostly Black students in Illinois, Lincoln College will close its doors for good on Friday.
The college made the announcement last month, citing financial troubles caused by the coronavirus pandemic and a ransomware attack in December.
Enrollment dropped during the pandemic and the administration had to make costly investments in technology and campus safety measures, according to a statement from the school.
A shrinking endowment put additional pressure on the college’s budget.
The ransomware attack, which the college has said originated from Iran, thwarted admissions activities and hindered access to all institutional data. Systems for recruitment, retention, and fundraising were completely inoperable at a time when the administration needed them most.
In March, the college paid the ransom, which it has said amounted to less than $100,000. But according to Lincoln’s statement, subsequent projections showed enrollment shortfalls so significant the college would need a transformational donation or partnership to make it beyond the present semester.
The college put out a request for $50 million in a last-ditch effort to save itself, but no one came forward to provide it.
A GoFundMe aiming to raise $20 million for the college only collected $2,452 as of Tuesday.
Students and Employees Give a Bittersweet Goodbye
“The loss of history, careers, and a community of students and alumni is immense,” David Gerlach, the college’s president, said in a statement.
Lincoln counts nearly 1,000 enrolled students, and those who did not graduate this spring will leave the institution without degrees.
Gerlach has said that 22 colleges have worked with Lincoln to accept the remaining students, including their credits, tuition prices, and residency requirements.
“I was shocked and saddened by that news because of me being a freshman, so now I have to find someplace for me to go,” one student told WMBD News after the closure was announced.
When a group of students confronted Gerlach at his office about the closure, he responded with an emotional speech.
“I have been fighting hard to save this place,” he said. “But resources are resources. We’ve done everything we possibly could.”
On April 30, alumni were invited back to the campus to revisit the highlights of their college years before the institution closed.
On Saturday, the college held its final graduation ceremony, where over 200 students accepted their diplomas and Quentin Brackenridge performed the Lincoln Alma Mater.
Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.