Nearly 70% of jobs created in 2nd quarter of 2013 were in 3 lowest paying sectors

Yesterday was the first Friday of the month, which means a new jobs report was released.

At 162,000, the July jobs report fell short of expectations and well shy of “whisper” numbers for payroll figures above 200,000. In addition, job tallies were revised down for May and June and average hourly earnings fell 0.1% in July, the first decline since October.

Sure, jobs were added, (and hourly earnings fell .1% also) but what kind of jobs were they?

finance.yahoo.com...

According to Alpert’s analysis, 69% of the jobs created in the second quarter – and 57% in the first half of 2013 – were in the three lowest-paying sectors of the economy: retail trade, administrative and waste services, and leisure and hospitality. These jobs, which account for 33% of all private sector jobs, pay an average of $15.80 per hour.

Over the past year, Ive seen plenty of "now hiring" signs just in my local area. Seems everywhere around here is hiring....except that it's pretty much all the low-wage jobs described in the article. Retail and restaurants always seem to have their doors open.

“What you’re seeing is now the spreading of low wage growth,” he says, noting those trends continued in Friday's July jobs report. “Really we have become a nation of hamburger flippers, Wal-Mart sales associates, barmaids, checkout people and other people working at very low wages.”

So what could this expansion of low-wage job growth do?

Taking it a step further, Alpert says the low-wage trend also explains why GDP growth remains so weak despite monthly average private sector job growth of nearly 200,000 in the past year.

The above makes sense to me, but below is where I kind of lose track with what he says.

“The bottom line is a lot of people are coming off unemployment,” which works out to around $12 per hour if you include Food Stamps, he says. “So a $15 wage to work has no impact… you’re not increasing consumption or the ability [of workers] to go out and buy stuff."

I have no idea where he is getting "$15 an hour". Im under the assumption that $10 and under is pretty low wage. Id love to be making $15 an hour at the moment.

Aside from that $15 an hour bit, the rest seems to sum up the past year for me.

As a result, the economy isn't getting the usual "second derivative" benefit of payroll growth whereby more people working leads to more economic activity and additional job creation, Alpert says.

Is this a really healthy trend to continue?

reply to post by buni11687


I'm pretty sure Wal Mart aka Wally World is among those hiring since they lose their workers more often due to Wally abusing them.
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reply to post by buni11687


Yes definitely. .

I thought the prostitutes were running a little thick as of late.

It is the oldest profession and pretty much promises job security.

Aside from that Fast food is Always booming. US fat @$$ Americans can't get off of Our dead @$$es too cook. That is what I call Job Security.

Thats still double what I make. Screw you guys, im going home.

It confirms something that has bothered me for along time that the middle earners which are made up often of people who have trained and specialised are suffering because their jobs have 'gone abroad'.

This has been happening in the UK for years and the number of part-timers is unbelievable within the professions and the degree areas of employment. In the UK a lot of this has been financed by family tax credits, a form of benefit paid by the government to supplement either part-time workers or low wages.

Perhaps we are simply at the tipping point of work because there are too many people chasing too many jobs. However many of the newly created jobs here are the part-time low end paid unskilled work.

I do think that unless the financial system is changed so that debts, that will never be repaid because no one will be around to see the final payments made for this current system, have got to be written off. Its only paper money but until this stranglehold on our world is broken, there can't be enough investment with which to create innovative companies that will make today's jobs that are so badly needed. We need skilled work for our graduates and semi-skilled workers desperately.

And out of those jobs created, how many were/are part time? How many employers will try to switch their employees to part-time as a loophole for Obama-care (if possible?)

ZeroHedge - Obamacare Full Frontal: Of 953,000 Jobs Created In 2013, 77%, Or 731,000 Are Part-Time

reply to post by Philippines


it is not just Obamacare shaping the new workforce....(25 hr work week @$7.25)


as soon as the unregistered aliens are give that blanket Amnesty-toward-citizenship
there will be another flood of people that will further under cut the wages being paid... as another 20+ million central & S American refugees swarm the borders

what work will they have?
perhaps some can become live-in housekeepers or aid-&-attendance health-aides as the population ages and many will not afford old-age homes...bottom line,,, learn a 2nd language

This is dire times here in the United States. I fear for the worst, as the jobs market continues to dry up, and Washington doesn't care.

The edge is coming.

those 15 dollar an hour wages IS NOT what you get in your paycheck, it is what the company pays per employee...this includes their part of unemployment, health insurance, (even if you do not get it, it's included in the aggregate), insurance on you if you hurt yourself on the job, etc....

Originally posted by St Udio
reply to post by Philippines

 

it is not just Obamacare shaping the new workforce....(25 hr work week @$7.25)


as soon as the unregistered aliens are give that blanket Amnesty-toward-citizenship
there will be another flood of people that will further under cut the wages being paid... as another 20+ million central & S American refugees swarm the borders

what work will they have?
perhaps some can become live-in housekeepers or aid-&-attendance health-aides as the population ages and many will not afford old-age homes...bottom line,,, learn a 2nd language

Thanks for the response. How in your opinion is Obamacare presently shaping the current USA workforce? What are in your opinion the short term and long term effects?

You seem to be much more connected there than myself, thanks for your time =)