Connect with us
Pawleys Front Porch


Jobs Surge … Or Do They?




The American economy added 288,000 jobs in June – sending the nation’s employment rate to a six-year low of 6.1 percent.  Also job growth in April and May was revised upward by nearly 30,000 additional positions.

Great news, right?  Not so fast …

For the third straight month, the nation’s labor participation rate remained stuck at 62.8 percent.  Before last fall, it hadn’t plumbed those depths since 1978.  All told, 111,000 additional working age Americans were not part of the labor force in June – sending the nationwide total to a record 92.1 million.

That’s right … 92.1 million working age Americans are not part of the nation’s labor force.

Additionally, wage growth remained flat for the second straight month – with the average private sector hourly wage climbing only six cents to $24.45.  That figure represents a two percent gain over the previous year – however it’s been more than wiped out by rising consumer prices.

The worst news of all?  June’s “Jobs Bonanza” was exclusively a part-time phenomenon.  The number of part-time jobs surged last month by 779,000, according to the data released by the U.S. Bureau of Labor Statistics (BLS).  That’s the largest jump in more than two decades.

Full-time positions?  Those plunged by 523,000 …

So … while the quantity of jobs last month may have been good, the quality was not.

Look, we hate to play Debbie Downer when it comes to economic data … we really do.  We want nothing more than for the American private sector to rebound (no matter who gets the political credit for it).  A robust American economy is good for everyone.  But the numbers coming out of Washington, D.C. aren’t as positive as the mainstream media would have you believe.

And it’s time we all start acknowledging that …