Fed overestimates second quarter job growth by over 1 million jobs

PHILADELPHIA (TND) — The Federal Reserve Bank of Philadelphia is now dramatically revising federal government estimates from the U.S. Bureau of Labor Statistics (BLS), which touted over 1 million jobs added from March to June 2022.

The BLS, a division of the Department of Treasury, estimated a net job growth of 1,047,000 jobs in the second quarter. But according to the Philadelphia Federal Reserve, job growth was “essentially flat” in the second quarter, with only 10,500 jobs added, according to their estimates.

Critics are fired up about the federal government vastly overstating the nation’s job growth, particularly in the midst of an important election year.

“Wrong by a million jobs. This is outrageous,” Sen. Rick Scott, R-Fla., tweeted in response to the federal government’s revisions. “Joe Biden’s admin has been lying to the American people about our economy to prop up his failed agenda & I won't stand for it. I'm requesting an immediate meeting with the head of the BLS. We need answers now.”

“This would be the top news story in America if the administration of a Republican President cooked books like this on a jobs report in the home stretch of a midterm election,” Rep. Lee Zeldin, R-N.Y., tweeted. Zeldin ran an unsuccessful bid for New York governor in November.

Since July, the White House has claimed that during the second quarter of fiscal year 2022, the economy generated 375,000 new jobs a month, describing it as “record-setting job creation.”

While the nation did see big job growth under President Biden in 2021, critics argue it was sparked by the economic bounce-back caused from the nation's recovery from the COVID-19 pandemic.

But enter 2022, and economic growth in the first two quarters under the Biden administration is in the negatives, showing a staggering decrease from the year prior, according to Roll Call.

Just a month ahead of the midterms, White House Press Secretary Karine Jean-Pierre was blasted for once again exaggerating the success of the Biden economy and describing it as historic.

“We have created nearly 10,000 million jobs since President Biden took office, which is the fastest job growth in history,” Jean-Pierre said during a White House press briefing in September.

Critics have quickly latched onto the White House's spin on the economy.

“The Resident bragged that his regime added 1,121,500 jobs in 2Q of 2022. After adjustments it was actually only 10,500 jobs. That’s a one million, one hundred & ten thousand job difference, or an over-report of 10,000+ %,” Jason Nelson, a combat-disabled marine who ran for Congress this year, tweeted.

“Should we just assume everything they tell us before an election is a lie?” Charlie Kirk, the founder of Turning Point USA, a conservative college action network, tweeted.

The National Desk (TND) reached out to the BLS to inquire about a potential explanation for why the figure was so greatly overestimated. A lengthy response was received several hours later but it did not address any particular reason for why the overestimate potentially occurred.

Although the spokesperson for the BLS did appear to challenge the findings of the Philadelphia Federal Reserve's report, noting to TND that the BLS "does not publish a sum of states CES total as cited in the [Philadelphia] Fed paper."