Greatest Economic Miracle in History of the US? Greatest Job Loss Becomes the Greatest Job Gain With a Wave of the PPP Wand! Never Heard of Paycheck Protection Program?





So if you get paid thorough the PPP (Paycheck Protection Program) loan, you are then "employed" by the federal government, BECAUSE you are getting paid by the federal government, even though you need not be working. Also,  around 5,000,000 "temporarily laid off workers" were counted as "employed" mistakenly, but the mistake, in both April and May, was not corrected. 

From Zerohedge on the "great unemployment numbers":
The headline non-farm jobs data was so blisteringly good (+2.5 million jobs), market participants were left scratching theirs heads, wondering "V-Shaped Recovery" ??

The big question is, how did all the economic forecasters "forget" about the affect of PPP loans on the jobs data?
 Everybody seems to have forgotten about the PPP loans.  20 million private sector "employees" went from unemployed and collecting unemployment benefits, to employed and getting paid with PPP loans/grants,  are so are now being paid by the US Govt via these PPP loans (just started being doled out in May), and being reported as "employed" (whether they are working or not).  Without the PPP loans, those 20 million "employed" would go "poof" and become unemployed.

And, if that wasn't egregious enough, the Labor Department admitted that government household survey-takers mistakenly counted about 4.9 million temporarily laid-off people as employed. The government doesn't correct its survey results for fear of the appearance of political manipulation.  Had the mistake been corrected, the unemployment rate would have risen to 16.1 percent in May, and the corrected April figure would have been more than than 19 percent.

The majority of market participants just accept the headline data and don't bother to dive into the details.  It will take 1-2 days (at least) before this type of "nuance" becomes more widely known.


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