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.
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!
The US employment numbers are out this morning for June and it is the usual mixed bag.
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%).
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.
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.
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.
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
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!
Now are you still confused as to why hourly wage growth is so low?
“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!”