Job growth is coming from low-paying industries
The US economy is gaining workers, but many positions are part time or paying modest wages as the service sector picks up.
In the battle for a stronger U.S. economy, does quality or quantity matter more?
That's a question posed by this year's job growth, given that low-paying industries have accounted for 61% of the country's employment gains, The Associated Press reports, citing a Moody's analysis of Labor Department statistics.
Those industries, however, make up only 39% of overall jobs, which means that employment growth is predominantly coming from jobs with rock-bottom wages, such as restaurant and hotel workers.
"The jobs that are being created are not generating much income," Mizuho Securities USA chief economist Steven Ricchiuto wrote in a client note, according to The AP.
Even worse, part-time work has contributed 77% of this year's job growth. With the Affordable Care Act going into effect in January, some employers such as Regal Entertainment Group (RGC) have cut back hours as a way to avoid the mandate to provide health care insurance.
Unemployment is easing, but many of the gains have come via jobs that pay minimum wage or less, as in the case of waitstaff. Average earnings fell by 2 cents to $23.98 an hour, according to Friday's job report.
That may be adding fuel to the push for a higher minimum wage, with congressional Democrats calling for a $10.10 baseline federal wage. Fast-food workers have recently organized walkouts in support for higher wages, and some researchers note that the country's current $7.25 minimum wage buys far less than it did in previous decades.
The growth in low-paying jobs comes as the U.S. service sector saw a pickup in July. The pace was the fastest since February, the Institute for Supply Management said Monday.
While manufacturing and midlevel jobs can be shifted to lower-wage countries such as China or India, a McDonald's (MCD) crew member can't be automated.
As John Canally, an economist with LPL Financial in Boston, told The AP, "You're getting jobs added, but they might not be the best-quality job."
Follow Aimee Picchi on Twitter at @aimeepicchi.
This is what I've been saying. There are so many hundreds of thousands of jobs created, but how many are part time or minimum wage? They don't say that, they just announce, hundreds of thousands of jobs created!
In our Sunday paper, there's a banner that says how many jobs listings there are and how much in coupons there are. There might be 100 jobs listed, but when you look at them, most of them are "airlines are hiring, get your diploma in aircraft maintenance". "Be a medical coder in as little as 18 months!" "Get your CDL!"
Then there's the ones that are "Wanted, child educator wanted. Fridays 2-4 after school at blahblahblah day care center." "Hiring school bus drivers. Must be available 5-8 am and 1-4 pm."
Really??? REALLY????? Out of these 100 or so "jobs" listed, only 2 or 3 may be actual full time, actual jobs. The rest are training for jobs or part time jobs, but all of them are minimum wage, service industry jobs.
if this headline is correct, then why should the minimum wage be raised if all these minimum wage jobs are fueling the economy?
seems like backwards logic to me
Does the quantity or the quality of the liberal c$ck you s$ck to keep your job matter?
I am so confused by how so called "experts" belive that these jobs numbers and quality are not the largest road sign that has ever been right in front of thir faces that this economy is in serious trouble...the stock market today dived due to the fed saying it could start to reduce printing in september...and for those who dont understand its not printing by the way its injecting money into banks which in turn loan to large companies to either rollover debt or share buybacks...there is so little velocity being produced by the cash being injected"its the lowest in decades" that it points to deflation of most assets except for commodities....These jobs combined with deflation in a economy depending on consumers for 70% of GDP seems very evident to me that in the coming years we are in big trouble....In a deflation cycle raising wages would only harm everyone including the companies that refied their debt and took on more debt..leading to bankruptcy and further loss of jobs...What we need is less of a focus on shareholder value and calls for companies to take on debt by billionare investors in order to increase dividends.."that does sound insane doesnt it? rob the company with debt to pay the shareholder!"...and a return to a larger portion of profits going to the employees which in turn increases incomes which get spent on consumer products which in turn are taxed which in turn drives GDp and tax revenues...Its a vicious but good cycle...I will miss the gains I've made on stocks the last few years but in the long run it would mean more of a constant growth instead of the volotility weve had every seemingly five years...The U.S. is the worlds consumer... if more money is in the hands of those that spend the most the entire world will reap the benefits...If i purchase my own stock that money is now going into wall street which supports wall street...if i increase the wages of my middle class employee it supports main street...they purchase a home..or purchase a car..or lawn mower..or furniture..or a computer...The middle class.."the largest consumer" used to grow which in turn grew the economy...now it is shrinking...see whats happening?...the only GDP growth is now more and more from financials on wall street and does not create the numbers of jobs that increased spending power could...and which in turn would ward of the deflation...but with all the fed money injection rising wages could start a severe bout of inflation..its going to be a scary ride the the next few years...but can still be money making time by shorting stocks and playing the voltilty on wall street but on main street there isn't any such thing as shorting...except for short of a pay check...
Democratic ideology is to raises the min wage and regulate out the ****, but u can't over regulate or it creates inefficiencies and bad spending, not to mention lazy incentives.
Republican attitude is to let everything be as is, let markets figure themselves out. Thats all cool and all but people are corrupt(after all economics is a social science). Too many people get taken advantage of with this system and it ends up being 99% vs 1%.
How about we put our minds to work and actually get something done in Washington for once? Because the cost of living is marginalizing the middle class and allowing for corporate welfare to be at an all time high.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
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