The job market’s hidden flaw is now obvious — and rate cuts might not fix it

Barely noticeable at first, the cracks in the U.S. labor market from immigration raids, arrests and deportations — most recently on display at a Hyundai KR:005380 plant in Georgia — are now becoming harder to ignore.

Data released this week showed the number of jobs in the U.S. economy was overstated by 911,000 over the 12-month period ending in March. Last week’s monthly jobs report also disappointed, showing that the economy added 22,000 jobs in August — far below the expectations of a 75,000 increase.