Hey Bartender! Food services and drinking places and Healthcare Lead June Hiring Gains (Part-time Jobs RISE 799,000 while Full-time Jobs FALL 523,000)

Americans must love to drink and eat out, because “Food services and drinking places” was among the largest gainers in today’s jobs reportat +32.8K. Also posting large gains was “Health care and social assistance” at 33.7K, but healthcare itself was only +21.0K.

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That is an “increase” in full-time jobs of -523,000 and an increase in part-time jobs of 799,000.

Kind of hard to claim that adding 288,000 jobs is June is meaningful when 799,000 jobs added were part-time like bartenders and wait-staff.

Hey Bartender! Draw 1, draw 2, draw 3 glasses of beer!

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US Payrolls Surge 288K As Average Hourly Earnings Growth Falls To 2.0%; People NOT In Labor Force At New Record High

The US employment numbers are out this morning for June and it is the usual mixed bag.

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On the positive side, nonfarm payrolls surged 288,000! On the negative side, as we add more nonfarm payroll jobs, average hourly earnings growth falls (this time to 2.0%).

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And the number of people NOT in the labor force hit an all-time high of 92.1 MILLION! That was an additional 111k not in the labor force. So the net addition of nonfarm payrolls is still 177k.

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As a consequence of the small NET addition of nonfarm payrolls, the employment to population ratio rose slightly to 59.0%, far below the peak of 64.4% in 2000.

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Now you can see why the residential housing and mortgage market is so slow to recovery. Wages and employment-to-population have NOT recovered meaning that there are not enough eligible borrowers. Throw in soaring house prices and we have a debt-to-income (DTI) problem.

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So why exactly is the government encouraging students to take on student loans when the wage growth is depressed and it cuts into their ability to purchase a home?k

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What the headlines won’t say about the jobs report is that PART-TIME jobs grew by 799K in June while full-time jobs FELL by -523K!

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Now are you still confused as to why hourly wage growth is so low?

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“I sure am glad that I borrowed $60,000 to get this degree in Political Science and got this part-time job as a food prep specialist!”

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