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Fed Warns The Plunge In "Routine" Jobs Won't Slow Down Anytime Soon

Tyler Durden's picture




 

Employment in the United States is becoming increasingly polarized, growing ever more concentrated in the highest- and lowest-paying occupations and creating growing income inequality. As the Dallas Fed explains, market changes involving middle-skill jobs in the U.S. are hastening labor market polarization. So-called "Routine" jobs have declined from 58% of employment in 1981 to 44% in 2011, while both types of non-routine jobs have expanded. The number of routine jobs declined in every recession since 1970, as did most other types of jobs. However, routine jobs always rebounded during the economic expansions that followed the recessions of the 1970s and 1980s.

 

 

This pattern changed dramatically in the three recessions since 1990. None of the routine jobs lost in these downturns came back in the following expansions.

 

This is a problem since middle-skill, routine jobs still account for almost half of all existing jobs; and as the Dallas Fed concludes, the pace of labor market polarization is unlikely to slow down anytime soon.

 

Source: Dallas Fed

 

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Tue, 06/10/2014 - 15:16 | 4841630 NOTaREALmerican
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Above average people don't do "routine" jobs,  don't these guys know anything.

Tue, 06/10/2014 - 15:26 | 4841658 Number 156
Number 156's picture

What do you think they want 'Immigration Reform" for?

Its the new slave trade, and most of the 'immigrants' don't seem to get it.

Tue, 06/10/2014 - 15:30 | 4841680 power steering
power steering's picture

It's about the votes Einstein. It's not about lawn care.

Tue, 06/10/2014 - 15:31 | 4841693 ParkAveFlasher
ParkAveFlasher's picture

I prefer this article to the other one of the same name and content. 

Tue, 06/10/2014 - 15:37 | 4841715 ZerOhead
ZerOhead's picture

I agree... it's newer... and newer is better.

Just like the new way they calculate GDP and the number of unemployed...

Tue, 06/10/2014 - 16:11 | 4841806 StacksOnStacks
StacksOnStacks's picture

That Janet Yellen is so hot right now!

Tue, 06/10/2014 - 18:46 | 4842256 Kprime
Kprime's picture

GDP, it's always New and Improved

Tue, 06/10/2014 - 15:38 | 4841717 power steering
power steering's picture

You can say that again!

Tue, 06/10/2014 - 15:38 | 4841718 power steering
power steering's picture

You can say that again!

Tue, 06/10/2014 - 15:40 | 4841726 TeamDepends
TeamDepends's picture

They are actually not the same.  On the other one there is a typo,  it is supposed to read "Poutine".  The "first lady" has publicly declared poutine taboo, and, well, have you priced the ingredients to make real gravy lately?

Tue, 06/10/2014 - 16:33 | 4841860 Chief Wonder Bread
Chief Wonder Bread's picture

All jobs are routine.

It's a sliding scale.

It ranges from the 'routine' to the 'poutine'.  power + routine = poutine.

Tue, 06/10/2014 - 16:43 | 4841889 max2205
max2205's picture

Robots

Tue, 06/10/2014 - 17:36 | 4842040 Chief Wonder Bread
Chief Wonder Bread's picture

Anyone of us could be a robot and not even know it.

You could be one.

I could be one.

The guy who thinks he's a successful Zero Hedge contributor?

There could be robots on this site right now having conversations with each other and not even know it.

The internet is a house of illusion.

Tue, 06/10/2014 - 18:04 | 4842077 TeamDepends
TeamDepends's picture

Deckard: Suspect? How can it not know what it is? Tyrell: Commerce, is our goal here at Tyrell. More human than human is our motto. Rachael is an experiment, nothing more. We began to recognize in them strange obsession. After all they are emotional inexperienced with only a few years in which to store up the experiences which you and I take for granted. If we gift them the past we create a cushion or pillow for their emotions and consequently we can control them better.
Tue, 06/10/2014 - 18:14 | 4842138 Chief Wonder Bread
Chief Wonder Bread's picture

Rachel

Tue, 06/10/2014 - 15:36 | 4841709 i_call_you_my_base
i_call_you_my_base's picture

It's about cheap labor, and secondarily, votes.

Tue, 06/10/2014 - 16:37 | 4841866 Monty Burns
Monty Burns's picture

It's about the votes Einstein,

 

It's also about wrecking the social and racial cohesion of the country.

Tue, 06/10/2014 - 21:53 | 4842958 Number 156
Number 156's picture

That too, Niels Bohr,
which you touch on another issue;
They care only about themselves. They could care less if getting re-elected would destroy the lives of hard working people. 

 

Tue, 06/10/2014 - 15:39 | 4841723 i_call_you_my_base
i_call_you_my_base's picture

That's good, because 90% of Americans are above average.

Tue, 06/10/2014 - 15:17 | 4841635 zorba THE GREEK
zorba THE GREEK's picture

McDonalds needs to cut the shift to 6 hours and add a fourth shift.

Tue, 06/10/2014 - 15:21 | 4841649 NOTaREALmerican
NOTaREALmerican's picture

Or 24 one hour shifts.

Tue, 06/10/2014 - 15:42 | 4841731 ZerOhead
ZerOhead's picture

Brilliant!

Unemployment problem finally solved Obamastyle.

Tue, 06/10/2014 - 15:19 | 4841641 Salah
Salah's picture

What the Fed Res needs....what the US Govt needs....what the US economy needs....is the equivalent of another Internet.   A treetrunk with many branches.

Betcha a goddamn million dollars...the fucking US military is sitting on such a thing, right fucking now.

Tue, 06/10/2014 - 15:20 | 4841645 alien-IQ
alien-IQ's picture

I guess that's the news the market needed to push to yet a new all time high by the close.

Tue, 06/10/2014 - 15:20 | 4841647 venturen
venturen's picture

well investment banking and trading rigged stocks is pretty routine....why did they come back?

Tue, 06/10/2014 - 15:21 | 4841648 NOZZLE
NOZZLE's picture

Weber Grill has the nerve to sell this fucking hubcap with a wire rack inside for $30 and to top it off, manufacture it in China.  https://c7cf1aee0f9592118cd3-45a8e764187dff1857a6ffe8280848dc.ssl.cf2.ra...

So after working at your shit job as a fry cook, paying your rent, paying for your overpriced food you can somehow afford to spend $6lb on ground meat to put on this piece of junk.

Tue, 06/10/2014 - 15:33 | 4841696 power steering
power steering's picture

Shit and I'm rolling my roadkill up in bananna leaves and just throwing it in the old campfire. There's a great invention every day ya just gotta look around I guess.

Tue, 06/10/2014 - 15:48 | 4841752 lasvegaspersona
lasvegaspersona's picture

if you can get your hands on bananna leaves, you could get a bananna...screw the roadkill...

Tue, 06/10/2014 - 16:05 | 4841783 power steering
power steering's picture

I don't barbie my banannas Hoss but I agree, screwing roadkill is kind of a lasVegas thaing

Tue, 06/10/2014 - 15:34 | 4841699 Deathrips
Deathrips's picture

Ummm...I bought one of those a couple years ago for 15$.

 

Still works...not as good as my hasty bake.

 

RIPS

Tue, 06/10/2014 - 15:41 | 4841730 ebworthen
ebworthen's picture

I like my little hubcap but I bought it when it was made in the U.S.A. and good ground beef was $1.49/lb.

I could actually use it back then because I had a job and a house.

Now it's the George Foreman grill in the Apt., and chicken.

Correlation?

Tue, 06/10/2014 - 16:21 | 4841837 Baby Eating Dingo22
Baby Eating Dingo22's picture

But its a "WEBER"!! Every store has them, so it's gotta be good.

Home Despot and bLowes would never sell you crap.

With a name like Weber, it's got to be the highest quality bucket ur hard-earned money can buy

I bet that puppy will be part of of the legacy of many generations of family get togethers and good times

30 bucks is a steal. Dont be stupid. Buy them all up before you can't find them anymore

Tue, 06/10/2014 - 15:23 | 4841657 Mrs. Cog
Mrs. Cog's picture

It's those routine meals people can't find that the Fed/gov should be really worried about. Only nine away from....

Tue, 06/10/2014 - 15:28 | 4841669 yogibear
yogibear's picture

Most of the government jobs are routine and they keep expanding.

Tue, 06/10/2014 - 15:29 | 4841674 docmac324
docmac324's picture

15.00 dollars an hour will help too..

Tue, 06/10/2014 - 15:30 | 4841679 CheapBastard
CheapBastard's picture

That's what Steve Jobs told Barry; "Jobs ain't coming back."

Tue, 06/10/2014 - 15:31 | 4841687 Colonel Klink
Colonel Klink's picture

Lying to the American population seems to have become routine, when do they get rid of politicians, regulators, and MSM reporters?

Tue, 06/10/2014 - 15:35 | 4841703 power steering
power steering's picture

You pineing for NoKo again?

Tue, 06/10/2014 - 15:38 | 4841716 ebworthen
ebworthen's picture

Well then, the FED will keep flooding the corporations/banks/insurers with endless liquidity and bailouts to ensure that the slaughter of the middle class and the polarization of society continues!

Tue, 06/10/2014 - 15:46 | 4841747 lasvegaspersona
lasvegaspersona's picture

how about website page editor?...oops that job doesn't exist 

Tue, 06/10/2014 - 15:53 | 4841761 JR
JR's picture

The oligarchs are consistently destroying good jobs in the United States, pushing corporations to go offshore or to bring foreign workers here or to flood the country with an immigration wave that pushes against available good jobs.

So, now, they are warning us that the good jobs they are taking away they will continue to take away; that it is a process set to continue.

Well, the jobs that need to be taken away are the jobs of the oligarchs, of the politicians they’ve purchased and of the voter and public trough mobs that take their marching orders from the tyrants.

If this cartel is not removed, not only will there be continued loss in jobs in America, with all profit going to the international oligarchs, but there’ll be continued loss in freedom and, soon, the final destruction of the nation our fathers built.

It is way pass time that Americans run these people out of town.  They don’t belong here, they were not elected, they took over the Congress, they took over the Presidency, and the courts, all to use for their own purposes.

And it’s time we stop taking orders from them.

Who do we mean? The people who own the printing press that prints the dollars that buy the incumbent members of Congress that expands the reach of almost every government department that floods their toadies with enough money that the cries and pleadings of the people can be ignored.

Tue, 06/10/2014 - 15:56 | 4841762 Frilton Miedman
Frilton Miedman's picture

 

 

This trend benefits publicly traded companies, in turn shareholders whom represent the bulk of Americans, so it's break-even, right?

Eh, maybe not - 

http://www.zerohedge.com/news/guest-post-if-market-crashes-who-owns-enou...

 

 

Tue, 06/10/2014 - 16:11 | 4841809 Its_the_economy...
Its_the_economy_stupid's picture

American Exceptionalism needs no "routine jobs" going forward.

Tue, 06/10/2014 - 19:44 | 4842235 Frilton Miedman
Frilton Miedman's picture

 

 

Yep, exceptionally American engineers will figure out a way to match the productive efficiency of equally educated Chinese engineers who work for $250 a month.

 

 

Tue, 06/10/2014 - 16:14 | 4841820 Baby Eating Dingo22
Baby Eating Dingo22's picture

Well, it's not like the Fed ever spelled out what kind of jobs QE would create

Take this job and love it

Tue, 06/10/2014 - 19:42 | 4842250 Frilton Miedman
Frilton Miedman's picture

 

 

You ...do ...realise that QE and global free trade are not the same ...right?

I'm thinking, hopefully, folks opposed to, say, the TPP aren't convinced that a protest outside the Fed reserve will effect changes to the TPP, or any other trade agreements.

 

 

Wed, 06/11/2014 - 08:35 | 4843941 AdvancingTime
AdvancingTime's picture

I contend all of us understand what you are saying, but your statment underlines the mess we are in. Neither policy is helping to create the longterm and sustainable kind of jobs we need.

Wed, 06/11/2014 - 08:30 | 4843920 AdvancingTime
AdvancingTime's picture

Creating jobs in a mature market should be required to pass a certain "taste" test. It should be pointed out that while America is creating jobs it is costing a huge amount. I'm referring to the massive government deficit which I feel is the fuel driving our still rather weak growth. Is it sustainable, and just as important are these the right kind of jobs and will they last?

When a job that falls outside the description of government worker fails to make economic sense it becomes a form of working welfare with the taxpayer picking up the tab. We as a country and as a society have paid dearly for each unsustainable job created through government incentives and partnerships, because of the nature of many of these jobs we might even call them temporary. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/04/creating-real-jobs-remains-proble...

Tue, 06/10/2014 - 17:24 | 4842017 Bemused Observer
Bemused Observer's picture

Yeah well the Fed can let the government know that the plunge in "routine tax collections" won't be slowing anytime soon either...

Wed, 06/11/2014 - 08:28 | 4843917 AdvancingTime
AdvancingTime's picture

At the same time they can tell the government that the cost of paying people to never work again during their lifetime is going to increase sharply. The numbers don't work.

Wed, 06/11/2014 - 13:44 | 4845419 Bemused Observer
Bemused Observer's picture

NONE of the numbers work! It's absolutely astounding! I've never seen anything LIKE this, it defies common sense.
It's modern-day witchcraft.

Tue, 06/10/2014 - 19:33 | 4842388 earleflorida
earleflorida's picture

'We are all 'cookie?dough`coolies', now!'

Wed, 06/11/2014 - 08:25 | 4843904 AdvancingTime
AdvancingTime's picture

This will all be spurred on by higher wage cost. While I'm strongly against raising the minimum wage because it will make America less competitive and slow job growth, I concede the debate is destined to continue until it is raised. I hereby state without a doubt, the minimum wage will go up! Polls show a majority of Americans support this idea.

It is my feeling that many people believe the myth this will put more money into the consumers pocket and create economic growth. They fail to recognize it will also spark inflation while reducing opportunity. New twist and wrinkles are being added by the White House and supporters of this increase every week. Expanding the number of workers eligible for overtime pay is another attempt to push this along. Unfortunately much of the impact and pain will directly fall upon small business the real creator of jobs. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/03/the-minimum-wage-will-go-up-right...

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