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Where The (Low-Paying) Jobs Were In June

Tyler Durden's picture




 

While we already showed that according to the Household survey the quality component of the June jobs report was absolutely abysmal, with part-time jobs representing more than all jobs added in June, we find that according to the Establishment survey things were no better. In fact, as we show month after month, the bulk of the jobs additions were concentrated in the lowest paying industries.

To wit:

  • Leisure and Hospitality - one of the lowest wage categories - added the most jobs in June, 75K, or nearly 40% of all jobs added
  • Retail Trade jobs - another ultra-low wage category - rose by another 37K, or 20% of the total
  • Education, health and temp jobs - no millionaires here either - added another 23K, accounting for yet another 12%.

In short: 70% of all job additions, or 135K of 195K, in June were for the lowest paying jobs. As for David Tepper's US manufacturing "renaissance": Down 7K in May and down another 7K in June.

 

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Fri, 07/05/2013 - 09:55 | 3723430 Everybodys All ...
Everybodys All American's picture

I live near where at least five new restaraunts have opened within the last month. The rest of the economy is just limping along and barely alive. But people love to eat out and that economy is growing a big boiler.

Fri, 07/05/2013 - 10:06 | 3723457 asteroids
asteroids's picture

That's nice. I guess those new restaraunts all accept SNAP cards.

Fri, 07/05/2013 - 12:31 | 3723930 StacksOnStacks
StacksOnStacks's picture

I was surprised to see they can use those things at Whole Foods...  of course the lady got greedy and tried sneaking in a non FOOD STAMP product and then complained that she's gotten it before, all while holding up the line.

Fri, 07/05/2013 - 10:10 | 3723473 otto skorzeny
otto skorzeny's picture

resataurants are closing like crazy around us. w/ all of the freebies and coupons(groupon, kids eat fee, BOGO) they give out I don't know how they are making any $.

Fri, 07/05/2013 - 10:24 | 3723534 killallthefiat
killallthefiat's picture

A small bright side: loss of gubmint jobs

Fri, 07/05/2013 - 11:40 | 3723765 Ying-Yang
Ying-Yang's picture

Yeah I saw that too. Be nice to see over a longer term.

Fri, 07/05/2013 - 14:05 | 3724214 kito
kito's picture

when the gubbmint jobs REALLY go.........when the deleveraging starts and pensions are reduced or wiped out ala detroit.....that is when america begins its next leg down into third world status......go the gubbmint jobs....and so goes the majority of middle class............third world is where america is headed......

Fri, 07/05/2013 - 13:44 | 3724154 Arnold
Arnold's picture

The reason is clear. There is a six month government subsidy for training that reimburses the employer one half of

'training costs' of each new employee hired. At minimum wage, that is $3.63 an hour.

The value added people they keep, the complainers get let go for some reason.

Oh, the value added people get to keep their job, no increase in taxable wage, the company already doubled your hourly wage, shuffled your benefit cost off to the government (food subsidies, health insurance, clothing allowance, and the like),

and the company looks good to someone for employing you.

 

I wish I had a specific "citation" for a proof of this new way of doing business, but all I have is first hand experience in this genre of Job, and more than a little experience with real work.

Fri, 07/05/2013 - 10:02 | 3723443 Debtless
Debtless's picture

Out looking at commercal rental space yesterday. There's so much available space it's frightening. Strip malls are business empty. This is the real story on the ground near me.

Fri, 07/05/2013 - 10:05 | 3723451 Cursive
Cursive's picture

@Debtless

Just this past month, we have a bank leaving town (closing 2 branches) and the BlockBuster finally closed its doors.

Fri, 07/05/2013 - 11:11 | 3723701 krispkritter
krispkritter's picture

Guy built a new strip mall over on a local state road and opened his donut shop.  Florida Highway Patrol moved in a few months later(not kidding).  Not one other business opened in it in the last 4 years until a consignment shop last month. Meanwhile, the same small town got a Dollar General to push the Chinese crap about 2 months ago. There are empty malls everywhere here and even the chain restaurants are closing(Quizno's, Steak n Shake, etc.).

Fri, 07/05/2013 - 14:12 | 3724243 tarsubil
tarsubil's picture

People get their fastfood from Amazon now. It is just more proof of the internet efficiency revolution. /sarc

Fri, 07/05/2013 - 10:03 | 3723444 Cursive
Cursive's picture

Is it any wonder that "Thrift Shop" was one of the most popular songs this year?

Fri, 07/05/2013 - 10:07 | 3723463 otto skorzeny
otto skorzeny's picture

that song has a good underlying message about overpaying for basically worthless shit like designer clothes-with all of the unemployed youth it struck a chord.

Fri, 07/05/2013 - 10:07 | 3723461 Cdad
Cdad's picture

Great...waiters and freakin' temp workers.  And Larry Kudlow declares it "a solid report."  Well, there you go.  What else do you need to know?

Fri, 07/05/2013 - 10:11 | 3723467 otto skorzeny
otto skorzeny's picture

Larry then proceeded to nestle his face back in a pile of Peruvian flake.

Fri, 07/05/2013 - 10:08 | 3723468 autofixer
autofixer's picture

So what?  Didn't "we" vote for this?  Who is Ed Snowden? 

Fri, 07/05/2013 - 10:18 | 3723508 disabledvet
disabledvet's picture

"who is Ed Snwden" indeed. computer programming is an interesting trade. creating algo's really isn't that hard. "strategic thinking" (run via computer and lacking in critical reasoning) can be easily devolved down to the local level...even the level of the individual.

Fri, 07/05/2013 - 10:12 | 3723479 Quinvarius
Quinvarius's picture

Mining and logging added jobs.  Heh.  I am sure it was the logging half.

Fri, 07/05/2013 - 10:28 | 3723551 ArmChairEcon
ArmChairEcon's picture

I'm in Grants Pass, OR for the weekend.  It looks like a 2 speed economy here.  Housing prices are much higher than in 2005, but everybody says the economy sucks.  Looks like the rich are doing very well and the poor are having a real hard time finding jobs.

Fri, 07/05/2013 - 11:43 | 3723772 Ying-Yang
Ying-Yang's picture

No agriculture is this chart? There is bound to be growth in employment in WA and CO for weed.

Fri, 07/05/2013 - 10:15 | 3723486 fonzannoon
fonzannoon's picture

I think there is some legitimacy to this link. People are starving the beast, and they will be targeted soon enough.

http://finance.yahoo.com/blogs/daily-ticker/2-trillion-shadow-economy-not-counted-jobs-numbers-114838216.html

Fri, 07/05/2013 - 12:00 | 3723810 paulbain
paulbain's picture

===============

 

 

 

 

fonzannoon wrote:

-------------------------------------

People are starving the beast, and they will be targeted soon enough.

-------------------------------------

Uhm, I am not sure as to your meaning. Do you mean that people earning money in the underground economy "will be targeted soon enough?"  If so, who will "target" such scofflaws, and how?  I presume that you mean that the IRS will "target" them, but I want to be certain that that is what you meant.

 

 

 

====================

Fri, 07/05/2013 - 10:21 | 3723524 Judge Crater
Judge Crater's picture

The USA is reaping the reward of twenty years of outsourcing and 35 years of bad Fed policy.  For all the talk about how China is now going through a banking crisis now, China is a manufacturing powerhouse.   The USA, once the center of innovation, now only creates new forms of IOUs, derivatives backed by the full faith and credit of banksters. 

As an exampe of what the USA makes,  Pfizer (which cut tens of thousands of drug representatives after its merger with Merck) just introduced a new combination anti-cholesterol drug that combines Lipitor (out of patent) and Zetia  Merck alraedy sells another statin drug combination, Vytorin, which is a combo pill of Zetia amd Zocor.  Vytorin is worse than useless, as an anti-statin drug it works worse than Zocor by itself.  So, the totally discredited Zetia is recycled into a new combo pill by the lawyers and MBAs who run Pfizer.

If things are bad now on the job front, with near zero interest rates for large corporations, what will happen when interest rates eventually go up?  Probably VP Biden will take more overseas trips to drum up support for American products, billing the taxpayers $250,000 per day to cover the cost of his entourage's massive hotel bills.  For the two hundred or more people who travel with Biden, life is a world full of freebies.

Fri, 07/05/2013 - 10:47 | 3723633 overmedicatedun...
overmedicatedundersexed's picture

the bank I use has let go all the old time tellers that knew me from years banking there, I am a stranger to the new mostly minority types they have hired, racist or just not fooled by hiring part time slaves who are happy to be kept on the plantation? do less and less banking there..maybe if I learned spanish, hmmm el loco gringo

Fri, 07/05/2013 - 11:11 | 3723704 Boondocker
Boondocker's picture

I have just spent time in silicon valley/ san jose/south bay area.....there is more vacant commercial and industrial space than you can shake a stick at, yet this area is supposedly booming.  

Fri, 07/05/2013 - 12:09 | 3723841 paulbain
paulbain's picture

===========================

 

 

 

 

 

 

 

If this statement is true, then it is interesting because it would represent yet another important discrepancy between what the traditional news media reports and economic reality.

 

-- Paul D. Bain

PaulBain@PObox.com

 

 

 

 

 

 

 

 

 

 

===========================

Fri, 07/05/2013 - 13:48 | 3724169 uno
uno's picture

very interesting report, with regulations and taxes, small businesses must be having a hard time.  Most people there must have very little discretionary income.

Fri, 07/05/2013 - 11:43 | 3723773 Strike Back
Strike Back's picture

The sneakiness of these fuckers is amazing.  Print $85 billion a month while talking like they're not.  Funny money gets pumped into the economy, leading to explosion of part time, slave labor while manufacturing continues to be cut out from under us and an "investor" slumlord led housing "boom" keeps the optics satisfactory.  Call this a recovery.  No really, this is a recovery, and when they taper, if they taper, fingers crossed that shit will just fly along without a hitch. 

I doubt it. 

Fri, 07/05/2013 - 12:39 | 3723969 kchrisc
kchrisc's picture

"Sneakiness"??

It's called lying.

Fri, 07/05/2013 - 11:50 | 3723793 AcidRastaHead
AcidRastaHead's picture

"The economic comebacks of New York, of New Jersey and of so many states ride piggyback on the growth of low-wage jobs, on the hiring of those who dip French fries in boiling oil and pull flesh off the bones of factory chickens"

http://www.nytimes.com/2013/07/02/nyregion/making-7-75-an-hour-and-figur...?

Fri, 07/05/2013 - 11:57 | 3723805 auntiesocial
auntiesocial's picture

my friend in SF makes 18 / hr and he is still always broke and barely scraping by. SF is a tough town unless you are ballin' or a trust fund kid. 

Fri, 07/05/2013 - 12:11 | 3723850 Save_America1st
Save_America1st's picture

well at least it is good to see "government" jobs in the negative, whatever those might have been.  Now if we could just fire all the CONgress critter scum in D.C. and the rest of the useless hangers-ons feeding off the private sector like a malignant cancer we just might see some improvements!

Fri, 07/05/2013 - 16:19 | 3724657 Arnold
Arnold's picture

A nod to the Sequester?

Fri, 07/05/2013 - 13:41 | 3724149 DIgnified
DIgnified's picture

I love ZH graphics.  Posted the picture over at HP. Got this reply from a leftist.

From: wowreallywow

11 minutes ago ( 1:24 PM)

"That's one link that needs to be broken!  CUTITOUT"

 

 

Guess the link wwasn't welcome at the party.  :(

 

 

Fri, 07/05/2013 - 16:02 | 3724603 Burticus
Burticus's picture

The local weekly business journal just published a list of the largest local employers.  Almost all of them are gubmints/agencies or hospitals dependent on gubmint payments.

We're doomed.

Sat, 07/06/2013 - 09:31 | 3726181 MontgomeryScott
MontgomeryScott's picture

This 'jobs' number is easily explainable.

YES, it IS planned this way.

This is a furtherance of the 'Obamacare' legislation, in that these jobs, for the most part, are not subject to the Obamacare taxation scheme. It's the Hegelian Dialectic in spades, don't you know. The masses are simply reacting to another CREATED problem; the solution being the end result of the impoverishment of the 'middle classes' in this nation (and worldwide). This is the furtherance of a long-standing attack on the United States' manufacturing base, and freedom in general. It is mathematically predictable...

'Silent Weapons For Quiet Wars,...'

http://www.lawfulpath.com/ref/sw4qw/

I spent a few hours reading this one last Saturday. Call it what you will, it explains a lot of shit in clear terms.

Do NOT follow this link or you will be banned from the site!