Tag: shit jobs

Since 2014 The US Has Added 520,000 Waiters And Bartenders And Lost 13,000 Manufacturing Workers

Obama economy in full swing. Vote Hillary for more of the same. 
Tyler Durden's picture
by Tyler Durden
Sep 2, 2016 12:57 PM

As another month passes, the great schism inside the American labor force get wider. We are referring to the unprecedented divergence between the total number of high-paying manufacturing jobs, and minimum-wage food service and drinking places jobs, aka waiters and bartenders. In August, according to the BLS, while the number of people employed by “food services and drinking places” rose by another 34,000, the US workforce lost another 14,000 manufacturing workers.

The chart below puts this in context: since 2014, the US had added 523,000 waiters and bartenders, and has lost 13,000 manufacturing workers.

 

While we would be the first to congraulte the new American waiter and bartender class, something does not smell quite right. On one hand, there has been a spike in recent restaurant bankruptcies or mass closures (Logan’s, Fox and Hound, Bob Evans), which has failed to reflect in the government report. However, what we find more suspect, is that according to the BLS’ seasonally adjusted “data”, starting in March of 2010 and continuing through August of 2016, there has been just one month in which restaurant workers lost jobs, and alternatively, jobs for waiters and bartenders have increased in 77 out of the past 78 months.

We are curious what this “data” series will look like after it is revised by the BLS shortly after the NBER declares the official start of the next recession.

HOW WAGES CAN FALL DURING AN EMPLOYMENT “BOOM”

The MSM is gushing about the fantastic job numbers. We added 292,000 jobs in December according to the always accurate BLS. A critical thinking person might wonder how we could add that many jobs and have wages dropping. A critical thinking person might also wonder how we could add 2.5 million jobs in the last year and have wages rise only by a pitiful 2.5%. A critical thinking person might also wonder how GDP can be 0.5% if the jobs market is booming. A critical thinking person might also wonder how retailers could be reporting dreadful holiday sales and more importantly plunging profits if the unemployment rate is only a measly 5%. Luckily, there are no critical thinking people inhabiting the MSM. Just propagandists and mouthpieces for the vested interests.

Zero Hedge provides an excellent overview of why the “strong jobs market” meme is complete and utter bullshit. Shit jobs paying shit wages, with millions having to work two jobs, and the labor participation rate still at 1978 levels, does not make a strong jobs market.

Here are a couple other tidbits from perusing the BLS data:

  • In January 2015 the labor participation rate was 62.9%. After this supposed jobs boom, it is at 62.6%. This is at a 40 year low. Does that happen if jobs are plentiful?
  • Since January 2015 the BLS says we’ve added 1.8 million jobs. Over this same time frame another 1.4 million working age people have supposedly left the workforce because they evidently don’t need a job to pay their bills.
  • So lets get down to some facts. There are 252 million working age Americans in the country today. Only 150 million of them are employed. That means 102 million totally capable human beings are not working for some reason. The taxes paid by the 150 million pay for the non-productivity of the 102 million.
  • It gets better. Did you know the BLS considers you full-time employed even if you don’t work their defined level of 35 hours? My entire life, 40 hours was considered full-time. My work week has always pushed 50 hours.
  • Of the 150 million employed Americans, only 110 million of them work 35 hours or more. So now we have 110 million employed Americans supporting 102 million non-working drones and 40 million more who are working part-time.
  • Now for the cherry on top. Since September, the BLS and the MSM have been crowing about the tremendous job growth. The country has added 1 million jobs. It seems 387,000 of those jobs were people who were so desperate they needed to take a second job. There are now 7.7 million Americans with multiple jobs – the highest in history. Another 187,000 jobs added since September were self-employed. That’s right – Ebay entrepreneurs, Amway distributors, and lawn cutters have saved the nation. So 60% of all the jobs added were essentially desperate people trying to survive.
  • Since August the country has added 900,000 jobs. A little research reveals 471,000 of these jobs were part-time.

It’s amazing how a little critical thinking and research can reveal why the reported jobs numbers are a farce. Obamacare is bankrupting families and small businesses across the land. The only jobs available are shit, low paying, service jobs. What happens when the thousands of retail stores close in the next year, booting even the low paid retail clerks out into the street?

This is Obama’s recovery – real household income at 1989 levels. The Hillary propaganda machine and the liberal MSM will flog the recovery story to death, but it is complete and utter bullshit. I know it. You know it. And the stock market knows it too.

If this fake data point after 1,200 points of losses can’t generate a bounce, the shit really is about to hit the fan.

Why No Wage Growth: Multiple Jobholders Surge To Highest Since August 2008

Tyler Durden's picture

Submitted by Tyler Durden on 01/08/2016 09:23 -0500

As we noted earlier, while the headline payrolls print blew away consensus estimate, printing above the highest expectations, there was a rather unpleasant number in the data: nominal average hourly wages actually dipped by 1 cent to $25.24.

What caused this? There are three reasons.

First: the continued surge of minimum wage jobs, as seen in the chart below, which shows that in December another 36,900 minimum wage waiters and bartenders were added to the labor force, bringing the total to a new record high of 11.3 million.

Continue reading “HOW WAGES CAN FALL DURING AN EMPLOYMENT “BOOM””