Friday, October 03, 2014

The new jobs numbers

Much is being made of the new jobs report, and how it signals how wonderful the economy is.

Well, that's bullshit. Here are some of the more pertinent facts, as compiled from the St. Louis Federal Reserve Bank's FRED database:

On the job front, we’re still approximately 2.6 million full time jobs behind where we were at the prior peak. This after more than five years of ‘recovery’.
 
Also, looking at FRED data I see that people ages 25-54 have over 4.85 million fewer jobs now than at the prior peak. But that population has only dropped by 1.4 million. Overall, the employment percentage for that group has dropped 3% points since the prior peak.

Again, this is after almost five years of 'recovery'. This expansion will not last forever, and it will likely end before we reach the old peaks of full time jobs and jobs of any kind for people in their prime working years. Which hurts those folks immensely, as it will negatively impact everything from total life-time earnings to starting new families. And new household formation has been a classic and strong driver of economy growth in the past. As new household formation falls, that reduces prospects for future growth.

Just try and remember all of this when people state how wonderful a job Obama is doing, and how wonderful the current 'recovery' is. Politeness may force you to have to listen to it, and you may not even be able to object lest you lose your job or other standing, but you don't have to believe it. And if you decide to punch the speaker in the face repeatedly, know that there are several million good reasons to do so. And that's BEFORE looking at the wage numbers, which present their own horror story....

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Links to data here:

Employed, Usually Work Full Time

Employment Level - 25 to 54 years

Civilian Noninstitutional Population - 25 to 54 years

 

 

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