Salient to Investors:

Matthew C. Klein writes:

  • The FRB of Chicago said it would take another 5 years to return to full employment at the June jobs pace, even with aggressive assumptions about aging, immigration and the birthrate that make the “employment gap” smaller than many believe.
  • More than half of the jobs added in June were either in retail or food services and drinking places, where employees tend to have much shorter work weeks and much lower hourly wages.
  • Canadian researchers suggest that, since 2000, globalization and technological advancement have reduced the demand for high-skilled workers, who end up pushing lower-skilled workers out of the job market entirely. The share of people aged 25 to 54 counted as being in the labor force has fallen by 3.5 percent since 2000.
  • Hourly pay has grown by only 1.9 percent over the past 12 months, and is basically unchanged since the end of 2009. Americans have less purchasing power than they did in November 2012.

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