Rebel Capitalist News New Jobs Data Reveals A Hidden Secret Everyone Missed
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Jan 9, 2026 The latest U.S. jobs data reveals troubling trends beneath the surface. A headline increase of 50,000 jobs is weak for a large population, as the unemployment rate drops due to declining labor force participation. Long-term unemployment and underemployment are on the rise, raising concerns about demand. Notably, revisions show significantly fewer jobs added in previous months, highlighting hidden weaknesses. Additionally, the disconnect between strong GDP growth and poor job revisions poses questions about the economy's future.
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Headline Jobs Number Masks Weakness
- The headline 50,000 payrolls gain in December is weak for a 350M+ economy and signals a fragile labor market.
- George Gammon links falling participation to the lower unemployment rate and distorted U3 readings.
U6 Reveals Hidden Labor Slack
- U6, which includes discouraged and underemployed workers, remains elevated at 8.4% and offers a fuller labor-market picture.
- Gammon argues U6 better reflects slack than the headline U3 unemployment rate.
Rising Long-Term Unemployment Skews U3
- Long-term unemployed rose almost 400,000 this year to 1.9M, making up 26% of all unemployed.
- Gammon warns rising long-term unemployment can artificially deflate U3 and mask true weakness.