Job market continues on as before with economy losing full time jobs and replacing them with part time ones
Contrary to President Trump’s tweets about how great the economy has been since his administration has taken over, the job markets are continuing in the same trend as before when they were under the former President, Barack Obama. ¬†And with the BLS publishing their new Jobs Report coming on Aug. 4 which proclaimed a beat over analyst expectations, the fact of the matter is when you break down the data, once again more full time jobs were lost, and the majority of newly created ones were part time.
On the surface the July jobs report was solid, with 209K jobs added, more than the expected, as the recent auto sector slowdown appears to skip the labor market (for now), with Trump quick to take credit for the report.
However, digging through the numbers reveals some troubling features: while the Household survey reported that an impressive 345K jobs were added, more than 50% higher than the Establishment survey, the bulk of these jobs was part-time.¬†According to the BLS,¬†in July 393,000 part time jobs were added, offset by a drop of 54,000 full-time workers. –¬†Zerohedge
Additionally, the majority of even these part time jobs were primarily in the hospitality sector (food services), continuing the trend that emerged following the Great Recession of a Waiter recovery versus a Manufacturing one.
Total nonfarm payroll employment increased by 209,000 in July. Job gains occurred in food services and drinking places, professional and business services, and health care. Employment growth has averaged 184,000 per month thus far this year, in line with the average monthly gain in 2016 (+187,000).
Employment in food services and drinking places rose by 53,000 in July. The industry has¬† added 313,000 jobs over the year.
Professional and business services added 49,000 jobs in July,¬†in line with its average¬† monthly job gain over the prior 12 months.
In July,¬†health care employment increased by 39,000, with job gains occurring in ambulatory health care services (+30,000) and hospitals (+7,000).¬†Health care has added 327,000 jobs¬† over the past year.
Employment in mining was essentially unchanged in July (+1,000).¬†From a recent low in October 2016 through June, the industry had added an average of 7,000 jobs per month.
Employment in other major industries, including construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities,¬† and government, showed little change over the month. –¬†Zerohedge
Until programs like Obamacare and tax reform are actually initiated by Congress, the chances for companies to actually begin hiring full-time, higher wage positions remains pretty slim. ¬†And when you tack on the fact that wages are not rising even close to the rate of inflation in the general economy, then the American consumer will continue to to hemorrhage debt just to survive, and the real threat of stagflation will only escalate.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.