What Quality Jobs? Over Half Of May Payroll Growth Is In Education, Leisure And Temp Help Jobs

Tyler Durden's picture




 

If there was some hope that in April the trend of the US adding low-quality (as in low-paying) jobs may finally be coming to an end, this came to a quick end in May, when more than half of the 217K jobs added were in the lowest paying sectors. Specifically:

  • Education and health: +63K
  • Leisure and Hospitality: +39K
  • Temp Help Services: +14K

These three lowest paying categories amount to 116K, or well over half of the total jobs gains. What's more, if there was some hope for a construction renaissance in April after 34K jobs were added in the sector, in May this too came to a grinding halt after only 6K construction jobs were added. The best paying jobs: financials and information, also deteriorated, with fins adding 3K in May, half of the April gain, while 5K Information jobs were outright lost in the past month, compared to a gain of 1K jobs.

The good news, if any: retail jobs did not make up the fluff of job gains as they have in the past, with just 12.5K retail jobs added in May, and finally: all that channel stuffing appears to be paying off finally as 10K manufacturing jobs were added in the month, up from 4K in April.

 

Is there any wonder why then with jobs such as these, both nominal hourly earnings:

 

And especially real earnings (which just declined in April):

 

... can't catch a sustainable break?

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Fri, 06/06/2014 - 09:32 | 4829718 lordylord
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"Education" and "Health".

Fri, 06/06/2014 - 09:33 | 4829726 Sudden Debt
Sudden Debt's picture

Make the combo AND YOU'VE GOT FOOTBALL COACHES!!

http://global3.memecdn.com/fat-sport-teacher_o_1180904.jpg

 

Fri, 06/06/2014 - 09:40 | 4829751 Leopold B. Scotch
Leopold B. Scotch's picture

Lots of job openings in private sector compliance work.  You know, helping navigate regulations, etc.  Really improves standard of living of those buying that service.

Fri, 06/06/2014 - 09:47 | 4829770 NoDebt
NoDebt's picture

Like I've said many times on ZH:  Small number of rich, large number of poor, and just enough middle class to service the rich.  As it has been in most societies throughout most of history.

I joke about a lot of things on ZH, but not that.  I'm dead serious that's what we're headed back to as a nation.  3rd world with iPads.  Neo-feudalism.  Call it what you like, but that's what it looks like.

And WHY?  Because it serves the needs of so many politicians and financial elites to have a subservient, utterly dependent underclass.  Nobody cares the state of the empire over which they rule, so long as they rule over it absolutely.

Fri, 06/06/2014 - 09:52 | 4829787 onewayticket2
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but, but, but.....Zandi said they WERE "Quality" jobs...."Good Quality....and getting better" he said.

Fri, 06/06/2014 - 09:57 | 4829809 Georgia_Boy
Georgia_Boy's picture

We need moar student loans, to hire moar college administrators! Because every child needs and deserves a college education!

Fri, 06/06/2014 - 09:59 | 4829819 NoDebt
NoDebt's picture

Exactly.  It's in the Bill of Rights, after all.  I think it's like the 8th amendment or something.  I can't remember, I was never very good at Social Studies.

Fri, 06/06/2014 - 12:18 | 4830303 curbyourrisk
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Fuck Zandi

Fri, 06/06/2014 - 09:53 | 4829790 MillionDollarBonus_
MillionDollarBonus_'s picture

The increase in educational jobs is a very strong indicator for future economic growth. Education is the key to a thriving economy - the more educated a population, the better equipped they are for the workplace and the more likely they to find a job. 

Fri, 06/06/2014 - 09:58 | 4829810 NoDebt
NoDebt's picture

What's a doctor or engineer earn in India?  It's not just "education = money".  There's just a smidge more to it than that.

Fri, 06/06/2014 - 10:19 | 4829883 Leopold B. Scotch
Leopold B. Scotch's picture

$ Million bonus always adding some levity.

Fri, 06/06/2014 - 10:22 | 4829893 NoDebt
NoDebt's picture

I know.  And he knows that I know.  I just like to argue sometimes.

Fri, 06/06/2014 - 12:19 | 4830309 Raging Debate
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NoDebt - Don't know what a spcialist makes in India but I got a cholonoscopy and it was an Indian doctor. As I paid cash I knew his portion was $730. He had completed 7 procedures that day. Think of that $5k a day! I am in the wrong business!

Fri, 06/06/2014 - 10:13 | 4829868 game theory
game theory's picture

Education jobs equals future growth is a massive hoax perpetrated mostly by people that work in universities. Professors with excessive pay and tenure take your tuition dollars and blow it on housing and leisure...just like the financial industry folks do with your "savings". No one wants you to graduate and succeed in STEM or any other field. These people couldn't hack it themselves in the private sector which is why they teach. If you do succeed, who will serve them food or mow their lawns? 

Everyone should educate themselves. But you do NOT need to go into massive debt to half-wit propaganda-laden universities to get educated. 

Fri, 06/06/2014 - 10:21 | 4829889 Leopold B. Scotch
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Education without jobs is a waste of investment capital.  But that's what the politicians want to handout, and the people's is brainwashed.

I'm a big fan of taxpayer guaranteed loans to be an art major.  Or another community planner. 

 

Psychology degree!

Fri, 06/06/2014 - 10:21 | 4829890 Leopold B. Scotch
Leopold B. Scotch's picture

Education without jobs is a waste of investment capital.  But that's what the politicians want to handout, and the people's is brainwashed.

I'm a big fan of taxpayer guaranteed loans to be an art major.  Or another community planner. 

 

Psychology degree!

Fri, 06/06/2014 - 10:38 | 4829947 chinoslims
chinoslims's picture

But how is one to join a frat if we don't attend university?

Fri, 06/06/2014 - 10:36 | 4829897 lordylord
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Game theory:

1) Research professors making 100-200k ABSOLUTELY earn their salary. I've seen the hard work they do first hand.  Many work 60-80hr/wk.

2) Much of that salary comes from their grants, not the university.  IN FACT, universities take a percentage of their grant money. 

3) Academia and industry are two very different environments and take two different set of skills.  It is not about not being able to hack it in industry.

4) "Professors with excessive pay and tenure take your tuition dollars and blow it on housing and leisure."  So spending ones hard earned pay on what they see fit is bad?  They can use it on cocaine and hookers if they want.  You sound very confused.

5) Professors go out of their way to help good students find jobs in STEM.  Professors want all of their good students to succeed.  You are delusional.

 

You have no idea what you are talking about.  Sounds like jealousy to me.  I'm guessing you couldn't "hack it" in your undraduate degree or couldn't find a good job because of a lack luster resume.

Fri, 06/06/2014 - 10:40 | 4829949 BrosephStiglitz
BrosephStiglitz's picture

Some of your points are a little naive.  Yes, universities need professors much in the same way a ship needs deckhands.  The professors and their reseachers are the core of the business.  Having said that, you are spreading a fallacy here.  This is two separate issues.

The degree system is in a credit inflated bubble.  It is quite likely that within 30 years the higher education (college) system will have downsized by ~70% because that bubble will burst (see: historical mean reversion).  Research is important to technological advancement, but the nature of the research is even more critical.  I can see the need for a team of highly paid theoretical physicists, or chemical engineers.  I cannot see the need for a team of highly paid sociologists, or gender studies professors.

Hell.  If I had my way I would cull those departments from my school and pay the scientists more.  The scientists are the unsung heroes of historical human progression and now more than ever the core sciences are in the dumps.  They make a pittance next to business, economics, finance, or legal professors in most schools.

Fri, 06/06/2014 - 10:58 | 4829967 lordylord
lordylord's picture

1) Which point is naive?  What is the fallacy I am spreading?  Be specific because everything I said is true and can hardly be disputed.

2) Yes, certain degrees are in a bubble.  If you are a good student in STEM, you WILL get a good job.  I havn't seen a single good student in STEM not find a job, even during the height of the recession.

3) You are addressing points that I never made.  Try to stay focused on what I wrote. 

 

In any case, we can both agree that GameTheory just sounds jelous, bitter, and confused.

Fri, 06/06/2014 - 11:05 | 4830042 BrosephStiglitz
BrosephStiglitz's picture

You edited your post after I replied (probably harmlessly) and I cannot remember the original content. As I read the post it sounded like all professors/academics are valuable, which is a somewhat fallacious notion to me at least.

The majority are valuable in a bubble much in the same way that NINJA loans selling independent mortgage brokers were valuable to society prior to the Sub-Prime.  Not deliberately, or maliciously I might add. They provide a service to the public based on the access to easy credit.

Anyway, we're on the same page I guess.  So I retract those statements and apologize.

Fri, 06/06/2014 - 11:19 | 4830097 Variance Doc
Variance Doc's picture

Spot on.  These idiots have no clue about academics, especially STEM fields.  The see it from the outside in, not the inside out.

Fri, 06/06/2014 - 11:12 | 4830076 Variance Doc
Variance Doc's picture

You have no fucking clue about what you are talking about.

Professors are underpaid for the work that they do.  I know because I was one until recently. A STEM prefessor at that.  We worked 60-80 hours per week, at odd times of the week in order to be productive - researching and lecturing.  My salary was not comparable to an industry equivalent for the hours i worked.

I left because research is no longer fun; it's treated as a business and not what it should be - research and education.  The real expense is administrators and the physical campus.  Do they really need a world-class gym?  No!  They should be there to learn and only learn.

Now, STFU.

Fri, 06/06/2014 - 12:21 | 4830321 BrosephStiglitz
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For what its worth, if you were a STEM professor, I do not blame you for leaving.  In most cases the sciences are so poorly paid in comparison to business/finance fields it is a sick joke.

There needs to be a major readjustment in the way value is calculated within the system and I am hopeful that it will be the case moving forward into the future, once the dust settles.

Science is a precise, demanding and thankless career to pursue thanks to the way money is administered.  People within and around the field can appreciate it though, which is something.

Fri, 06/06/2014 - 10:17 | 4829879 BrosephStiglitz
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Agree, but you vastly underestimate the role of the institutional environment in achieving productivity.  Take a look through history and you can clearly see that politics interferes with progress.  The giddy growth of the last two centuries has coincided with relatively unimpeded markets, fossil fuel use and strong educational standards.

Those trends are now beginning to wane and the political institutions are accelerating negative growth through bad policy rather than doubling down on historically important themes and hoping for the best.

Fri, 06/06/2014 - 11:29 | 4830145 Georgia_Boy
Georgia_Boy's picture

But historically important themes are eurocentric and white cis male privileged. We need to promote the non historically important themes to level the playing field. Every theme deserves equal time.

Fri, 06/06/2014 - 10:24 | 4829902 Stuck on Zero
Stuck on Zero's picture

Milton Friedman said that the best job training is a job.

 

Fri, 06/06/2014 - 11:22 | 4830125 MickV
MickV's picture

Yeah, lots more University of Phoenix "professors" "educating" desperate debt serfs.

Fri, 06/06/2014 - 10:06 | 4829836 kchrisc
kchrisc's picture

So correct.

Thing is, the American people have already been looted back to the third-world but do not know it yet.

Sad times coming.

 

"Guillotines will bring hope and change."

Fri, 06/06/2014 - 11:13 | 4830082 kwality
kwality's picture

You just described the socioeconomic dynamics of my town to a T.  The most disgusting part about it is how the middle ones lick the boots of those above and bloodlessly crush the poor with every "internal adjustment" and "board decision". 

Fri, 06/06/2014 - 10:11 | 4829862 ShrNfr
ShrNfr's picture

Sex ed, actually. Pornhub hired heavily. If you are being fucked, you might as well watch it.

Fri, 06/06/2014 - 09:32 | 4829719 Sudden Debt
Sudden Debt's picture

And that's why prostitution and drug dealing should also be included!!!

or is that already in the leisure numbers?

Fri, 06/06/2014 - 09:34 | 4829733 alien-IQ
alien-IQ's picture

i'm pretty sure that falls under "government employee".

Fri, 06/06/2014 - 09:33 | 4829725 alien-IQ
alien-IQ's picture

those ARE the new "quality" jobs.

Fri, 06/06/2014 - 09:35 | 4829737 Sudden Debt
Sudden Debt's picture

doesn't every kid dream of becomming a teacher or a bedpan nurse?

Fri, 06/06/2014 - 09:42 | 4829756 Leopold B. Scotch
Leopold B. Scotch's picture

A bedpan nurse for a regional oligopoly who controls so much of the local market, there's no wage or labor fluidity to be spoken of...

Fri, 06/06/2014 - 09:52 | 4829789 youngman
youngman's picture

actually if you are a nurse today...you have just moved up to Doctor status..because who can find one of those

Fri, 06/06/2014 - 09:48 | 4829779 alien-IQ
alien-IQ's picture

actually, kids from families with a net worth under 1mil are prohibited from dreaming. didn't you get the memo? they are supposed to take what few scraps are left on the table and gratefully say "Toby be a good nigger".

Fri, 06/06/2014 - 09:33 | 4829727 Cattender
Cattender's picture

Temping Fucking Rocks!!!! (a friend at Walmart) recently told me Walmart has it's OWN Temp Jobs Now! no need for Manpower!

Fri, 06/06/2014 - 09:43 | 4829758 valley chick
valley chick's picture

Heard from a friend who got herself a temp job at the post office delivering mail.  Parttime and no benefits and she was happy for the job! WTF?! 

Fri, 06/06/2014 - 09:33 | 4829730 LawsofPhysics
LawsofPhysics's picture

Yes, yes, funny how once people figure out that they are getting screwed over there is a huge push by TPTB to encourage investment in (re)education.

Let me be clear; roll the motherfucking guillotines, nothing changes otherwise.

Fri, 06/06/2014 - 09:38 | 4829745 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Hey man dont you know holding bedpans for the eldery is serious bidness? the motherfuckin guillos needed to be rolled out a decade ago, but I like they way you think.

Fri, 06/06/2014 - 09:46 | 4829768 LawsofPhysics
LawsofPhysics's picture

Big money in caring for the elderly by the way.

Fri, 06/06/2014 - 09:57 | 4829804 bigkahuna
bigkahuna's picture

"caring"

Fri, 06/06/2014 - 10:31 | 4829919 overmedicatedun...
overmedicatedundersexed's picture

today most generic drugs are produced in India for the ameerican market, co's free of oversight and paying lip service to GMP and FDA regs, with no tariff costs - in low wage India some how some way put Ameerican co's out of business (walmart owns it's own generic co in India)..thousands of good paying jobs gone..and I am sure this is repeated over and over in other industry..treason and terrorism by our own .gov and elite multi nationals, but none say treason.

Fri, 06/06/2014 - 09:43 | 4829753 BrosephStiglitz
BrosephStiglitz's picture

Taxation and greed are destroying the productive economy.

Fri, 06/06/2014 - 09:49 | 4829763 Leopold B. Scotch
Leopold B. Scotch's picture

Regulation complexity is equal if not worse.  It deliberately kills competition to the benefit of the major players with critical mass and at the expense of the consumer who must overpay for lower quality, and it enriches the parasitic compliance services technocrats... when it's not causing jobs to be exported abroad to avoid the B.S.

Fri, 06/06/2014 - 09:51 | 4829786 LawsofPhysics
LawsofPhysics's picture

The "complexity" is there by design so that only the "little people" go to jail.

 

Fri, 06/06/2014 - 10:16 | 4829875 Leopold B. Scotch
Leopold B. Scotch's picture

So the little people don't bother to try competing.  It used to be a shingle, hard work and a few $$'s saved opened the door to entrepreneurship.   Today you must pay off the compliance trolls on the bridge before you can even get out of the gate.  Price point of entry eliminates many, and the arbitrary regulatory headaches beyond that drive many who try out.  

 

Look at medicine where smaller two doc / 7 employee operations are going out of biz / merging into major regional networks at a breakneck pace... Not surprising -- that's been the regulatory goal of the big players buying regulation for decades, and a big part of why healthcare was broken long before Obamacare... which only tripled down on the inanity.

Fri, 06/06/2014 - 10:23 | 4829895 LawsofPhysics
LawsofPhysics's picture

Exactly.  "Vote" with your feet and your wallet.  "Full faith and credit"...

tick tock motherfuckers...

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