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Chart Of The Day: Jobs, Jobs, Jobs

Tyler Durden's picture




 

The number of employees across the firms of the broad-based Russell 2000 equity index has collapsed by more than half from its peak. The price of that index, in the same period, has risen 137%. Can you spot when the index 'price' disconnected from economic reality?

No seasonal adjustments; no surveys; no bullshit... Just Jobs -50% from peak... great for stocks

 

 

Be careful what you wish for Mrs Yellen...

Of course, we are sure the chart will be dismissed as meaningless for some "demographic" or "cyclical" reason and we should not worry, just BTFATH, of course.

 

Chart: Bloomberg

h/t Guenter Leitold

 

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Mon, 12/09/2013 - 16:14 | 4230190 madcows
madcows's picture

Why do you associate stock price with number of employees?  Clearly the value of a stock is propotional to the FED balance sheet, not the size of the company's payroll.

Mon, 12/09/2013 - 16:27 | 4230249 DaddyO
DaddyO's picture

September 2008, an epoch...

Who can forget seeing Hank Paulson going in to see GWB with his sidearm fully visible.

Placed it firmly on GWB's forehead and said, go ahead, make my day.

GWB obliged nicely, don't you think?

DaddyO

Mon, 12/09/2013 - 18:06 | 4230651 max2205
max2205's picture

BTFATH...it it works...dont make fun of it

Mon, 12/09/2013 - 16:35 | 4230271 OutLookingIn
OutLookingIn's picture

Wrong.

First thing a company does to "save" capital is to axe employees. The so-called "fat" from their system.

This boosts productivity as the remaining employees become fearful of losing their jobs. Those that do leave are replaced by workers who work for much less in wages. The companies begin doing more with less as they downsize operations, or move off-shore.

Meanwhile the profit/loss for the company improves, thus elevating their stock price. Helped along by ultra-cheap cash loans, compliments of ZIRP and the Fed. So, what do you have? A disconnect from stock pricing visa vis the number of employees who are actually working.

It would be very interesting to see an overlay on this chart of the labor force participation rate. Hmmm...  

Mon, 12/09/2013 - 16:49 | 4230349 Ham-bone
Ham-bone's picture

not pretty the secular decline in jobs....

US full time employees (those eligible for UE bene's...also those capable of buying a house, stawks, etc.)

'02 - 128.7 million

'08 - 134 million

'13 - 130.4 million

During this time, US population increased by by 30 million...this means about 1 in 15 entering the economy since '02 found a full time job...the rest just part timing, disability'ing, and turning into wards of the state. 

Paper is just paper...not exactly representative of a nations "rising wealth"

Mon, 12/09/2013 - 16:54 | 4230373 Lost My Shorts
Lost My Shorts's picture

Or going to prison.  Notice they always say "non-institutionalized" labor force.  The only place where jobs seem to increase is law enforcement and the prison system.  Somewhat off topic, but hilarious:

http://www.economist.com/node/16636027

My favorite bit:  "For bringing some prescription sleeping pills into prison, he was put in solitary confinement for 71 days. The prison was so crowded, however, that even in solitary he had two room-mates."

Mon, 12/09/2013 - 17:12 | 4230451 Headbanger
Headbanger's picture

I dunno...  Being in solitary with two other maniacs.. Is that a good thing??  I don't want to find out!

Mon, 12/09/2013 - 17:23 | 4230500 Son of Captain Nemo
Son of Captain Nemo's picture

Prisons?

Lining the pockets of the heavyweights like the Koch Brothers and Dick Cheney who reinforce their investments in the penal system through beefing up the quotas in each State through their Reps in D.C., so that they will always be "chock full" of business.

And the resume reads like a "who's who"in the worst law enforcement on the planet.  Our "best and brightest" now wear badges and carry pump action shot guns to "serve and protect" at home after a couple tours of death and destruction in the Middle East along with the meds to keep them healthy?

Hope that fact isn't lost on the new immigrants from Latin America, Eastern Europe and Asia clamoring to get into this Country to find their dream job.

Mon, 12/09/2013 - 20:38 | 4231143 Tim_
Tim_'s picture

IRS taking bids on 60 Remington 870 shotguns

"The Internal Revenue Service (IRS) intends to purchase sixty Remington Model 870 Police RAMAC #24587 12 gauge pump-action shotguns for the Criminal Investigation Division. The Remington parkerized shotguns, with fourteen inch barrel, modified choke, Wilson Combat Ghost Ring rear sight and XS4 Contour Bead front sight, Knoxx Reduced Recoil Adjustable Stock, and Speedfeed ribbed black forend, are designated as the only shotguns authorized for IRS duty based on compatibility with IRS existing shotgun inventory, certified armorer and combat training and protocol, maintenance, and parts."

The Randy Weaver Case

"On Oct. 24, 1989, Weaver sold two shotguns whose barrels arguably measured 1/4 inch less than the 18 inch length determined arbitrarily by Congress to be legal. The H&R single-barrel 12-ga. and Remington pump were sold to a good friend who instructed Weaver to shorten the barrels. The 'good friend' was an undercover informant working for the Bureau of Alcohol Tobacco and Firearms (BATF), who later told reporters he was in it 'mainly for the excitement.'"

Mon, 12/09/2013 - 16:54 | 4230379 emersonreturn
emersonreturn's picture

outlookingin

 

if only we could manage that with politicans.  great to see most/all of them fearful or replaced with workers willing for much less.  although regarding offshoring it could be argued that we've already done that, regarding london.

Mon, 12/09/2013 - 17:12 | 4230454 OutLookingIn
OutLookingIn's picture

Forget "politicians" they are put there to give you the illusion that you have freedom of choice. You DON'T!

Vast majority of "politicians" belong to the 1% group - VERY rich. They could not give one rat's ass about the plight of their constituants, who are mostly brain-dead because they keep re-electing those same bastards!  

Mon, 12/09/2013 - 17:01 | 4230412 Nick Jihad
Nick Jihad's picture

I think you mean "thanks to stock buybacks thanks to ultra-cheep ZIRP debt, EPS can increase even as profits stagnate". A more interesting chart would plot Russell 2000 market cap versus employment.

Mon, 12/09/2013 - 17:19 | 4230474 OutLookingIn
OutLookingIn's picture

Employment?

Government @ 7%?

Non-adjusted @ 11.4%?

Or ShadowStats @ 23.2%?

Mon, 12/09/2013 - 16:14 | 4230191 Racer
Racer's picture

Wow, reality is shocking compared to the FrauEDs efforts to continue to blow smoke into the bubbles

Mon, 12/09/2013 - 17:12 | 4230455 Headbanger
Headbanger's picture

And it's in "living color" too!

Mon, 12/09/2013 - 16:16 | 4230194 TrumpXVI
TrumpXVI's picture

Employees are SO pre-twenty-first century!

Mon, 12/09/2013 - 16:15 | 4230203 Bryan
Bryan's picture

And that right there is why I shorted the market in May 2009.  One would think the stock market would be a true reflection of the economy about 6-9 months in the future.  Who woulda node what could happen with a little paper and ink?  I'm still short the market, btw... just a protest position though, now that's it's down 85%.  ;-)

Mon, 12/09/2013 - 16:19 | 4230212 lemarche
lemarche's picture

GREAT CHART ZH... F# SCARY FOR WHAT S TO COME...

Mon, 12/09/2013 - 16:20 | 4230215 walküre
walküre's picture

Can we see the same with S&P, DJIA and NASDAQ

Stocks flying higher than ever but nobody is working. I think that's how the Mayan culture collapsed and if you need any evidence that they're never coming back from the dead just visit the Yucatan. The Spaniards just delivered the final blow to their dying culture.

Mon, 12/09/2013 - 16:25 | 4230238 Winston Churchill
Winston Churchill's picture

Putting human sacrifices into the drinking cisterns was the Mayan downfall.

Come to think about it, we are doing the same.Oh well.

Mon, 12/09/2013 - 16:20 | 4230216 toe
toe's picture

they must have all got jobs at nasdaq stocks.

Mon, 12/09/2013 - 16:18 | 4230217 j.tennquist
j.tennquist's picture

The Russell is the Fed's bastard love child. 

Sure the kid is fat and bloated, you simply can't eat that much wealth without putting on a few hundred vanity pounds.

Mon, 12/09/2013 - 16:22 | 4230226 ebworthen
ebworthen's picture

Algorithms and computers don't need a lot of programmers, and QE only takes a committee of 12 and millions of future taxpayers.

Mon, 12/09/2013 - 16:27 | 4230246 firstdivision
firstdivision's picture

Welcome to the new coporate America, where the only way to be profitable is to not have any employees.

Mon, 12/09/2013 - 21:16 | 4231250 PT
PT's picture

... and never mind, "the markets" will provide "the customers" ... always did in the past ...

... the trouble with offshoring is you eventually run out of rich customers  - a bit like the reverse of a Ponzi where you eventually run out of greater fools because you need so many of them, in this case you run out of rich customers as they tend to zero as everyone off-shores.

Mon, 12/09/2013 - 16:35 | 4230267 JustObserving
JustObserving's picture

Who gives a fuck about employees as long as the 0.1% get $85 billion a month?  And with US life expectancy lower than Greece, the 99% will fade away soon enough.

Accentuate the positiive - we who are about to die salute the 0.1%.

Mon, 12/09/2013 - 16:53 | 4230361 MarsInScorpio
MarsInScorpio's picture

Cold as liquid hydrogen.

 

There will come a point, however, when the 99% doesn't have the money to keep buying from the 1%.

 

Then comes the revolution.

-30-

Mon, 12/09/2013 - 17:23 | 4230505 MachoMan
MachoMan's picture

We crossed that rubicon a long time ago...  the revolution doesn't occur until the SNAP cards no longer work, the electricity goes off, and cold, hungry folks have too much time on their hands to figure things out...  until that day, we're full steam ahead into government dependency at all socioeconomic strata.

Mon, 12/09/2013 - 21:23 | 4231256 PT
PT's picture

... at which point, the 99% will fight each other because the .01% that caused the mess will be 10000 miles away and 98% don't even know who they are or understand what they did.  If you're cold, penniless and hungry, how on earth are you going to retaliate to strangers who live 10 000 miles away?

Mon, 12/09/2013 - 16:37 | 4230282 yogibear
yogibear's picture

Chart just shows more QE, Less employees is bullish for stocks. 

It's always been the day a company annouces massive layoff, the stock price jumps upwards. No surprises here.

 

Mon, 12/09/2013 - 17:19 | 4230485 Headbanger
Headbanger's picture

And what happens  when there are NO employees???   Hmmm??   What then Einstein??     ROBOTS?

Oh yeah.. Try selling the latest hair care, feminine hygiene or take out pizza to a bunch of fucking ROBOTS!

Cause they don't get laid (as far as I know) and they don't eat pizza!   Robots (like Bender) do drink however to fuel their fuel cells.

 

Mon, 12/09/2013 - 20:44 | 4231151 Nobody For President
Nobody For President's picture

plus one for Bender

Tue, 12/10/2013 - 00:48 | 4231591 StychoKiller
StychoKiller's picture

Gracias, mucho appreciado!

Mon, 12/09/2013 - 16:40 | 4230308 starman
starman's picture

Wait till January when retailers and manufactures start laying off 30% of the workforce!

Mon, 12/09/2013 - 16:45 | 4230322 Jason T
Jason T's picture

social welfare benefits make up for lost income from working.. for now.  

unintended consequences should prove disastrous. 

Mon, 12/09/2013 - 16:45 | 4230323 azengrcat
azengrcat's picture

Didn't you get the memo?  Do twice as much work for a 0% raise or GTFO. 

Mon, 12/09/2013 - 21:31 | 4231276 PT
PT's picture

Just a heads-up for those in that situation:  You'll work twice as hard, be twice as stressed, but someone else will be getting the credit for your hard work.  If you're totally stressed but not getting any credit then QUIT.  Quit soon and quit often ( if you get the opportunity ).  There are unseen fuckers stealing your glory.  Once you quit, they have to do their own dirty work - if they can.  Sometimes the only way to expose your enemy to the icy cold waters is to jump in first.  Sounds dumb but you were fucked anyway.  Why let your enemy steal your reputation and the fruits of your labour?

Mon, 12/09/2013 - 16:46 | 4230336 29.5 hours
29.5 hours's picture

 

 

Meanwhile, while idiots at ZeroHedge are talking about trivial issues, our NSA protectors are defending our little country by playing fantasy games...

Spies’ Dragnet Reaches a Playing Field of Elves and Trolls

This should make us feel much safer.

 

 

 

 

Mon, 12/09/2013 - 16:53 | 4230357 OneTinSoldier66
OneTinSoldier66's picture

I've never got to meet a Central Banker before, so I'm not sure they are real when it comes to economic reality.

Mon, 12/09/2013 - 16:53 | 4230370 toros
toros's picture

Didn't Windows Vista come out in 2009?

Mon, 12/09/2013 - 17:03 | 4230422 TheRideNeverEnds
TheRideNeverEnds's picture

super bullish!!  no need to pay for workers just use machines, build machines to fix the machines and then you are set, all profit!

 

but who will buy all this garbage you might be asking yourself...

 

the FED

 

another day another record high close!

 

all indexes close green across the board.   just close your eyes and buy em, its basically free money!

 

after this brief pause resolves itself sharply to the upside with the FED announcing increases in QE this month we will be set up nicely for next year being up 50-75% on all major indexes.   

 

 

Mon, 12/09/2013 - 17:23 | 4230495 che
che's picture

number of people working at russell 2000 companies is down from 6m in 2007 to 3m now. number of people working at s&p 500 is on the other hand almost the same as in 2007 (~23m). if anything that chart shows that a lot of smaller FIRE & construction related businesses went bust, so not really sensational.

Mon, 12/09/2013 - 17:25 | 4230518 Duude
Duude's picture

What we need is a chart reflecting jobs created in the food service and seasonal retail to get a more clear picture of the health of the US jobs sector.

Mon, 12/09/2013 - 17:40 | 4230564 FreeNewEnergy
FreeNewEnergy's picture

I am long the underground economy, and, it's working, as opposed to the Russell 2000, which will eventually collapse.

I know that sounds trite and hopeful, but like Obama, a transformational change to the system requires hope in the participants.

Go long change and be happy when the math doesn't add up. It's all about being on the right side of history, and the right side is against tyranny, spying, taxation, 1%ism and the status quo, and for freedom, non-reporting, non-compliance and saying "what the fuck do you want?" to any government types that may come calling.

Days like today, when the markets fail to follow through on massive gains, remind me that Wall Street is nothing but a big casino with rigged games of chance.

Stack on.

Mon, 12/09/2013 - 17:39 | 4230565 Miss Expectations
Miss Expectations's picture

Due to the skyrocketing unemployment, disabiility, SNAP participation, foreclosures, student debt, health insurance costs, I am getting completely overwhelmed by all the media coverage of family after family after family that is homeless, hungry and utterly without hope.

Mon, 12/09/2013 - 17:42 | 4230578 FreeNewEnergy
FreeNewEnergy's picture

The trick is to not become overwhelmed or a statistic.

Fight.

Mon, 12/09/2013 - 21:33 | 4231281 bunnyswanson
bunnyswanson's picture

https://www.youtube.com/watch?v=kd-gn-FtG30

This guy is fighting for us.  Let's fight for him.

Mon, 12/09/2013 - 18:46 | 4230751 Racer
Racer's picture

Computers don't need no 'jobs'

Staaahkks prices are negatively correlated to real people, the more you can put in computers to replace them the better... see what HFT has done for the price of the RUT, say no more.....

Mon, 12/09/2013 - 18:55 | 4230779 Loucleve
Loucleve's picture

Clearly, the answer, the only answer, to this conundrum is AMNESTY.

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