Salient to Investors:
David Stockman writes:
- Total non-farm labor hours are no higher than in Q4, 2007 and only 1% higher than in the spring of 2000, meaning we have added virtually no new employment to the US economy over 2 business cycles.
- Over the 29 quarters after the 1990 business cycle peak (Q2, 1990 to Q3, 1997) non-farm labor hours increased by 12% and after the 1981 peak (Q3, 1981 to Q4, 1988) increased by 17%.
- Worse, we keep replacing high productivity hours in the full-time jobs sector for low-skill, low-pay jobs in bars, restaurants, Wal-Marts and temp agencies.
- The number of full-time jobs in energy and mining, construction, manufacturing, white-collar professions, business management and services, IT, transportation/distribution and finance, insurance and real estate is 1.7 million below their level of December 2007 and lower than in 2000.
- The Keynesian Fed is fueling serial financial bubbles, causing a temporary lift in the discretionary incomes of the top 10% of households, which own 85% of the financial assets, and the next 10-20% which feed off their winnings. The result is the leisure and hospitality sectors boom, creating many jobs for bar tenders, waiters, bellhops, etc. which mostly are 26 hours per week and $14 per hour. As soon as the financial bubble bursts, these jobs quickly disappear.
- The 12.3 million manufacturing jobs reported for June was 10% below the level of December 2007, and nearly 30% lower than in January 2000. The 19.6 million high-productivity, high-pay goods producing jobs in energy, mining, manufacturing and construction in June was 5 million lower than in January 2000. No wonder the median real household income has declined by 7% over the last 15 years.
- BLS reports health, education and social services generated another 48,000 jobs in June versus the 42,000 monthly average for the sector since 2000. But these jobs pay on average only $35k a year and are almost entirely fiscally dependent on a public sector that is broke and a public debt that keep ballooning.
Read the full article at http://davidstockmanscontracorner.com/barrack-obama-tells-another-whopper-he-did-not-create-12-8-million-jobs/?utm_source=wysija&utm_medium=email&utm_campaign=Mailing+List+Saturday+9+AM
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