Trump's Economy Is Worse Than It Looks -- Key Economic Indicator Sinks to Pandemic-Era Levels

"The warning sign isn't the unemployment rate, which still sits near historically low levels. It's the quality of the jobs being created. And one closely watched employment metric just slipped back to levels last seen during the pandemic-era recovery - a signal that the economy may be softer than the monthly payroll headlines suggest."

"According to data highlighted by Advisor Perspectives using Bureau of Labor Statistics employment figures, just 82.6% of employed Americans now hold full-time jobs. That leaves 17.4% working part-time - one of the weakest full-time employment ratios since the COVID recovery period. More concerning is the direction of travel."

"Recent labor data showed: Full-time employment declined by roughly 424,000 jobs; Part-time employment rose by approximately 123,000 jobs; Workers forced into part-time positions for economic reasons increased again; The broader U-6 unemployment rate has continued edging higher (though it declined slightly in April). Simply, the economy is increasingly creating lower-quality work."

"That matters because full-time workers spend more money, borrow more confidently, buy homes, finance vehicles, and drive discretionary spending. Part-time workers tend to pull back. When full-time employment contracts while part-time work rise"

The stock market has risen sharply, supported by artificial intelligence spending, strong corporate earnings, and optimism about tax and deregulation policies. Labor-market stress is appearing beneath headline employment figures. Unemployment remains near historically low levels, but the share of employed Americans working full-time has fallen to 82.6%, the weakest level since the COVID recovery period. Full-time employment declined by about 424,000 jobs while part-time employment increased by about 123,000 jobs. Workers forced into part-time positions for economic reasons increased again. The broader U-6 unemployment rate has continued to edge higher. This shift indicates the economy is creating lower-quality work, which can reduce consumer spending and confidence.

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