Monday, October 5, 2015

Payrolls Disaster.....ANOTHER PESKY FACT!

Payrolls Disaster

The jobs report for September was truly ugly, with tepid gains in the number of jobs, no increases in average wages, and a drop in the total number of hours worked. The labor-force participation rate for working-age adults declined again.

Only 142K Jobs Added In September, Zero Wage Growth; August Revised Much Lower.

The "Recovery" Continues: 21,000 Waiters Added; 9,000 Manufacturing Workers Lost

And so the "most important payrolls number" at least until the October FOMC meeting when the Fed will once again do nothing because suddenly the US is staring recession in the face, is in the history books, at 142K it was a total disaster, 60K below the consensus and below the lowest estimate.

Just as bad, the August print was also revised far lower from 173K to 136K. And while it is less followed, the household survey was an unmitigated disaster, with 236,000 jobs lost in September.

In 2015 job growth has averaged 198,000 per month, compared with an average monthly gain of 260,000 in 2014. The recession is almost here.

And worst of all, average hourly wages stayed flat at 0.0%, also below the expected 0.2%. Actually, if one zooms in, the change was not 0.0%, it was negative, while weekly earnings actually declined.
The Feudal "Recovery" Continues: 21,000 Waiters Added; 9,000 Manufacturing Workers Lost

Since the start of the depression in December 2007, the US economy has added 1.5 million waiters and bartenders and lost 1.4 million manufacturing workers.




Finally, not only were workers paid less, they worked less, as the average hourly work week declined.


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