Friday's job report shows that December's top-line job creation surprised on the upside, but as always, digging deeper into the numbers reveals that the labor market is much weaker than it appears.

It started with a downward revision of 71,000 jobs for October and November, marking the 10th downward revision of job creation in the past 11 months. Considering this downward revision, the December employment report did not exceed expectations, but did not meet expectations. As a continuation of this trend, we expect his December job creation next month to be revised downward as well.

Add to that the fact that last month's job gains were disproportionately held in low-productivity government jobs, continuing the trend for 2023. Government employment grew by an average of 56,000 people per month in 2023, more than twice as fast as in 2022. Many of these government jobs are new IRS agents hired to harass productive small business owners.

More than half of the new jobs last month were in government or semi-government health and social assistance jobs. In 2023, nearly 60% of the 2.7 million new jobs were in these sectors.Wall Street Journal's Alicia Finley pointing out, in some blue states such as New York, Illinois, and Michigan, job growth in these sectors accounted for more than 100% of net new jobs, even as job creation in other parts of the real economy declined. . She aptly calls it the “welfare industrial complex.” (Related: Alfredo Ortiz: Bidenmix is ​​the Grinch who stole Christmas)

Although the unemployment rate remains low, nearly 700,000 Americans left the labor force completely last month. The number of full-time workers fell by 1.5 million, and the number of multiemployers rose to an all-time high as more Americans had to take on additional jobs to make ends meet in today's high cost of living. Real wages continue to stagnate and grow at roughly the same rate as core inflation.

This more detailed picture of the labor market reflects the predicament faced by small and medium-sized enterprises, which create nearly two-thirds of all new jobs. Gerald Salkey Co., a 125-year-old Iowa horse-drawn carriage manufacturer, was recently forced to close due to a lack of consumer demand. “The entertainment money that small businesses depend on has been sucked out of the economy,” owner Eric Lee explained to me. With price levels rising nearly 20% since President Biden took office, it's no surprise that consumers will be forced to shift discretionary income to pay for necessities.

San Antonio restaurant “Sangria on the Burgh” recently closed This is due to high costs and decreased sales. Owner Cesar Zepeda said his restaurant is just one of many middle-class restaurants that are closing as eating out becomes a luxury.Recent Marketplace report The closure of small and medium-sized businesses continues at a steady pace. “Each store that has closed appears to have its own story,” the newspaper reported, saying it was “either unable to pay rent or unable to attract enough customers.” This is the reality of Main Street in the Biden economy.

Consumer credit card debt is supporting the economy and labor market, hitting record highs $1.2 trillion. But high interest rates and low credit scores mean there's a limit to how much debt consumers can take on. As credit dries up, remaining discretionary income also declines, reducing consumer demand and hindering small business job creation. That way, top-line payroll numbers will reflect the economic realities happening below the surface.

Alfredo Ortiz is president and CEO of Job Creators Network and author of “.real racing revolutionaries” co-host.Main Street Matters” Podcast.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

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