• Kevin Hassett suggests that excluding government workers and World Cup effects, jobs rose by 100,000, indicating underlying labor market strength.
  • The comments come amid revised data showing overall payroll gains, with private sector growth outpacing public sector.
  • Economists caution that such adjustments may obscure broader trends, but the core figure suggests resilience.

A Closer Look at the Numbers

In a recent statement, White House economic advisor Kevin Hassett offered a novel interpretation of the latest jobs report, suggesting that when stripping out government employment and temporary World Cup-related hiring, private payrolls increased by 100,000. This figure, he argues, is a more accurate reflection of the underlying labor market, which he described as "solid" despite overall gains being revised downward. The Bureau of Labor Statistics reported a headline increase of 150,000 jobs, but Hassett's adjustment aims to filter out what he sees as distortions.

"When you take out the government workers and the World Cup effect, you see about 100,000 new private sector jobs," Hassett said during a press briefing on Friday. "That's a healthy number, especially given the current economic headwinds." His remarks were intended to counter concerns that the labor market is cooling, pointing to the private sector as the true engine of growth.

The data, released earlier this week, showed that private employers added 135,000 jobs, while government employment rose by 15,000. The World Cup effect, which Hassett referenced, refers to temporary hires in hospitality and retail sectors linked to the tournament's final stages held in the U.S. this summer. These seasonal positions, he argues, are not indicative of long-term trends.

Reactions from Economists

However, some economists are skeptical of such adjustments, noting that they can be arbitrary. "It's common for officials to cherry-pick data to make a point," said Julia Chen, a senior economist at a major financial firm. "But the private sector has been consistently strong, so the overall picture remains positive." Indeed, the three-month average for private payrolls stands at 120,000, which is above the level typically associated with a stable unemployment rate.

Hassett's comments also come as the Federal Reserve weighs its next move on interest rates. With inflation showing signs of easing, some policymakers have argued for a pause in rate hikes, and a resilient labor market could support that stance. "If the underlying job creation is still healthy, the Fed may have more room to cut rates later this year," noted market strategist David Lee.

We reached out to the White House Council of Economic Advisers for further comment but did not receive an immediate response. The Labor Department is scheduled to release its next jobs report in September, which will likely provide more clarity on the trajectory of employment growth.

Correction: An earlier version of this article incorrectly stated that Hassett's remarks were made on Thursday; they were made on Friday. The article has been updated to reflect the correct date.