Top Ex-White House Economist Admits 94% Of All New Jobs Under Obama Were Part-Time

Tyler Durden's picture

Just over six years ago, in December of 2010, we wrote "Charting America's Transformation To A Part-Time Worker Society", in which we predicted - and showed - that in light of the underlying changes resulting from the second great depression, whose full impacts remain masked by trillions in monetary stimulus and soon, perhaps fiscal, America is shifting from a traditional work force, one where the majority of new employment is retained on a full-time basis, to a "gig" economy, where workers are severely disenfranchised, and enjoy far less employment leverage, job stability and perks than their pre-crash peers. It also explains why despite the 4.5% unemployment rate, which the Fed has erroneously assumed is indicative of job market at "capacity", wage growth not only refuses to materialize, but as we showed yesterday, the growth in real disposable personal income was the lowest since 2014.

 

When we first penned our article, it was dubbed "fringe" tinfoil hattery, or in the latest vernacular, "fake news."

Fast forward 6 years, when a report by Harvard and Princeton economists Lawrence Katz and Alan Krueger, confirms exactly what we warned. In their study, the duo show that from 2005 to 2015, the proportion of Americans workers engaged in what they refer to as “alternative work” soared during the Obama era, from 10.7% in 2005 to 15.8% in 2015. Alternative, or "gig" work is defined as "temporary help agency workers, on-call workers, contract company workers, independent contractors or freelancers", and is generally unsteady, without a fixed paycheck and with virtually no benefits.

The two economists also found that each of the common types of alternative work increased from 2005 to 2015—with the largest changes in the number of independent contractors and workers provided by contract firms, such as janitors that work full-time at a particular office, but are paid by a janitorial services firm.

Krueger, who until 2013 was also the top White House economist serving as chairman of the Council of Economic Advisers under Obama, was "surprised" by the finding.

Quoted by quartz, he said “We find that 94% of net job growth in the past decade was in the alternative work category,” said Krueger. “And over 60% was due to the [the rise] of independent contractors, freelancers and contract company workers.” In other words, nearly all of the 10 million jobs created between 2005 and 2015 were not traditional nine-to-five employment.

While the finding is good news for some, such as graphic designers and lawyers who hate going to an office, for whom new technology and Obamacare has made it more appealing to become an independent contractor. But for those seeking a steady administrative assistant office job, the market is grim. It also explains why despite an apparent recovery in the labor market, wage growth has been non-existant, due to the lack of career advancement and salary increase options for this vast cohort which was hired over the past decade.

The decline of conventional full-time work has impacted every demographic. Whether this change is good or bad depends on what kinds of jobs people want. “Workers seeking full-time, steady work have lost,” said Krueger. He then added, perhaps sarcastically, that “while many of those who value flexibility and have a spouse with a steady job have probably gained.”

Yes, well, spousal support aside, it also confirms another troubling finding this website reported first earlier this month, namely that the number of multiple jobholders has recently hit the highest number this century.

 

Not surprisingly, the study found that young workers represented the largest growth of contractors who frequently do not receive any kind of benefits, even when they are working full-time. The issue is particularly frustrating to employees in the entertainment industry where media conglomerates rely on freelancers for long periods of time without offering benefits, an arrangement frequently referred to as “permalance.”

None of these "qualitative" aspects, however, matter to the outgoing president, who believes his administration was a net positive for workers.

"Since I signed Obamacare into law (in 2010), our businesses have added more than 15 million new jobs," said Obama, during his farewell press conference last Friday.

He did not delve into the details of just what those 15 million new jobs were. Now we know; and we also know why the Fed is making a huge mistake in thinking it can hike rates and tighten financial conditions, to reverse engineer wage growth, when corporations are guaranteed to not increase wages even in response to higher rates, as the data above confirms that the amount of slack in the economy is vastly greater than virtually all economists are willing to admit.

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Ban KKiller's picture

President Obama just mis-spoke...that's all. Actually Bush Jr. was whispering in his ear at the time. 

President Obama is just a better spoken liar. That's it. 

t_kAyk's picture

You know he's lying if his lips are moving. 

Ghost of Porky's picture

Somebody's been peddling fiction.

y3maxx's picture

--A full time job is like a genuine blow job given by a beautiful partner...part time is more like a hand job....using your own hand.

TeamDepends's picture

It was a wonder to watch him fit in being POTUS between holes.

bobbbny's picture

If you like your low paying, no benefits, part time job, you can keep your low paying, no benefits, part time job.

Did someone say something about a legacy?

DaveyJones's picture

and 98% of all statements were part-true

847328_3527's picture

It's gonna be hard for a Rockette searching for a job under Obama.

Chris Dakota's picture

We knew that a long time ago, the real unemployment is 25%-30%

Trump said that too early on.

The Right and Left coasts (only cities) think their bubble is America.

Look who voted for Gaybama

They voted for fag stuff, accepted war and called it something else.

Told people they were losers if they couldn't find a job.

No wonder they are screaming about coming internment camps when everyone finds out the truth, and they will, its on.

BabaLooey's picture

Also note Chris:

NO mentions of Iraq or Bananastan - AT ALL - from the liberalloserpress ....very little to NONE.

Zippo. (and if so, most always the Bush side-swipe)

It'll be interesting to see THAT narrative all of sudden "change" come 1/21......

That - and a whole lot of other shit the liberalloserpress has been supressing.

Creative_Destruct's picture

Quoted by quartz, he said “We find that 94% of net job growth in the past decade was in the alternative work category,” said Krueger. “And over 60% was due to the [the rise] of independent contractors, freelancers and contract company workers.” In other words, "nearly all of the 10 million jobs created between 2005 and 2015 were not traditional nine-to-five employment."

And the MSM, of course, acted like, and continues to act like Obama created the standard fare of 9 to 5 gigs.

And these "Thank you Captian Obvious"  observations were well know to anyone who didn't have their head up their ass.

Unfortunately, roughly half the country, it seems, has an incurrable, chronic, rectal-crainial inversion condition.

Stuck on Zero's picture

Obama was correct when he said that he created thirty million good jobs. The jobs were in Mexico, China, Vietnam, ...

Offthebeach's picture

Shove ready green shoots jobs.

Ecclesia Militans's picture

Don't forget "shovel-ready."  No one mentions what's being shovelled, but there is in fact a great deal of it.  The shovelling, that is.

Knee deep in it, are we?

Syrin's picture

And half those jobs were for delivering pizza from Comet's Pizza

Offthebeach's picture

Harry Reid.

Get it?

Harry just loves the boy singers in the Mormon Tabernacle Choir Christmas Special.

drendebe10's picture

The illegal Indonesian kenyan alien muslim fudgepacker imbecile is a bumbling chicken legged world class pathologic liar.

Tom Green Swedish's picture

Barack Hussein Obama.  Now there is a real Christian sounding name.

BabaLooey's picture

The "No Shit Sherlock Award" for 2016 has just been won by this guy.

peddling-fiction's picture

Maybe Bobby Obnoxious is keen to comment on the legacy of his peddler-in-chief.

Nowhere to be seen on this thread. *Crickets*

BabaLooey's picture

bOOOOOObus noxiousfarts now is stalking me on here, peddling-fiction.

The only retort the loser-tard will get from me from now on will be this;

"Fuck off bOOOOOOObus

Worthless prick"

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

The jagoff ain't worth the sweat off an elephant's balls.

It's all he'll get.

 

peddling-fiction's picture

I was stalked by Father Thyme back some time ago.

Are you getting gangstalked in real life or are things getting weird with lots of street theatre?

bObnoxious also was on the spirit cooking side of things.

BabaLooey's picture

Nothing but Keyboard Cowgurl shit from bOOOOOObus

If you've wasted your time following the to and fro horseshit from bOOObus and me, you'll detect a certain waftness of runny shit from his side of the aisle - in the form of denial, arrogance, total assholiness, and general douchbaggery.

I'm sick of wasting my time on the fuck. Hence, he gets the standard "Fuck off" mention - or totally ignored from me here on in.

It's akin to either of us going to The Daily Kos, and calling them assholes (as he does, to me, and to others on here), acting like an ass, NOT backing up anything - spouting off - getting sledge-hammered - and then being stupid enough to stick around. ZH has it's share of assholes. One step above trolls -or below them. The common thread with liberal trolls is they are all nasty assholes, think they are smart - are fucking rude, and are still butt-hurt from the shellacking they got November 8th.

As I've said to the fuck - must be hard sticking up for a fraud, then a cunt.

That's his prerogative. Me? I've got better things to do. I got bored jousting with the fuck; getting the same asinine denials, cowgurl tough bitch talk, and not much else - now it's just stupid to even converse with him - and a waste of time.

peddling-fiction's picture

Yep, it is meant to tire you.

You did fine.

No fear.

BabaLooey's picture

Think about it for a minute P.F. - 

Name ONE person on here - that is a liberal - that;

IS civil. 

DOES put out a reasonable argument (hard to do - but still, it CAN be done)

DOES type more than one or two sentences.

Does NOT act like an asshole/call people names on here. 

I can't think of one person. Please let me know if you can.

It would be nice to have at least ONE liberal with some brains on here - and not a cabal of asshats.

 

peddling-fiction's picture

Maybe only GhordEUs.

We always chop his arguments up, but, yes, he is civil.

For that he gets a participation prize.

Chuckle.

BabaLooey's picture

I was thinking of him. He is civil - but in the scant minority.

Stateside? None.

I learned the art of civil arguing - "intelligent discourse" from my <liberal> American Politics & International Relations teacher in high school. Even though he was liberal, he welcomed opposing arguments, and it was actually fun. It never descended into name calling and stupidity - such as we have now. I do not like the echo-chamber effect here. 

I ONLY comment on this forum - no others. I find ZH to be loaded with plenty of people far smarter than I am here, and it's not some Putin loving site. Posters here are sick and fucking tired of the void of true leadership that the U.S. suffers from, and are envious of Russians, because they do have one. 

Public figures damn near deserve scorn - especially the current crop of fuckers. 

Trump? I am hoping he is even half the man/does half the job he promised. If not, he's added to the list. I've long given up on "saviors". At this point, stop-gaps (as I think we need a good "civil war"/splitting of the country to really end this horse shit.)

peddling-fiction's picture

+1 BabaLooey

I also ONLY post on ZH.

I wish Trump the best, but yeah, if he fucks up, he will be on all of America's shit list, liberals included.

I say this knowing a lot more that I am posting now.

neilhorn's picture

A big, burly, brute walks into a bar and says,"Every man on my right is a chickenshit pussy, and every man on my left is a queer."

The place goes quiet and everyone looks around. Soon a squirrely pencil-necked geek stands up very straight and looks the brute in the eye.

"What do you want, pipsqueak?" says the man.

To which Obama replies, "Excuse me sir. I'm on the wrong side of the room."

charlie303's picture

There are a lot of contenders for that award.

2016 ain't over yet!

undercover brother's picture

Once Obama is out of office and has no power, you'll see more and more of his enablers coming into the light and publicly throwing him under the bus in order to save their own political skin.  

knukles's picture

So this is what we've come to ....
Democrats saying "It's the nagger's fault."

See, this is what Identity Politics Brings.  Harmony. 

My Ass

drendebe10's picture

Get out the popcorn and beer.  Now that's entertainment.

Chris Dakota's picture

They are all Bushies, it has been the Bush Dynasty since Old Bush had Reagan shot.

JackT's picture

What an effin' disaster of a legacy.

wisebastard's picture

the government probably spends more time money and effort trying to turn boys out then they do at created jobs

charlie303's picture

or trying to turn boys into girls

Rainman's picture

This is why you can't drive 2 blocks without passing a shylock Payday Loan Center.

Chris Dakota's picture

Or cash for gold, where my stolen jewelry ended up.

elmo jones's picture

Stupid token NIGGER.

monad's picture

You have to admit, Cheney picked a great fallguy. I'm sure he's laughing his serial killing head off.

buzzsaw99's picture

owebomber created a lot of jobs but they were all in china.

z89101's picture

Truth would have debased Clinton - so disclosed when to late to hurt that cankle Queen. 

Clock Crasher's picture

Target that job market

-Zod Man of Steel

Holistic's picture

It's Putins fault they are only part time jobs.

alexcojones's picture

Merry Christmas, Fellow Zerohedgers!

From a Part Time employee & MAGA supporter.

Please drive safe, and See ya ALL Monday