Morgan Stanley Agrees That This Is The Problem With The Jobs "Recovery"

One problem with the jobs "recovery" that many people still can't quite figure out, is if jobs are growing, why are wages relatively flat.

As we have explained on numerous occasions, the jobs that have been created can largely been divvied up between leisure and hospitality (our waiter and bartender chart should be familiar to all regular readers of this site), and part-time help, with any wage growth being found at two extremes instead of broadly based throughout the spectrum, as Matt King recently pointed out.

Morgan Stanley is out with two charts that put everything into context as to why wages are not growing along with this "stellar" jobs recovery. Quite simply, the jobs that have been created have lower average wages.

First, here is the breakdown of the total number of private sector jobs created since February 2010:


And here are the corresponding wages for each industry...

Charts: Morgan Stanley

Oh, and MS adds one more thing, something that perhaps will now resonate with everyone now that it comes from a source that doesn't "peddle fiction." Although 'Professional and Business Services' has seen significant job creation since February 2010, the bulk of it was from temporary help services, which pay well below the industry average, thus the jobs recovery isn't quite as wonderful as many would like you to believe.

"The sector of Professional & Business Services alone represented 21.6% of the aggregate wage bill in 2015 and created a high percentage of net new private jobs, but as we found in our May 2015 analysis, a deep dive within the sector revealed that the bulk of the job creation came from Temporary Help Services, which pays well below the national average ($16.69/in 2015) and as such, represents a small share of the overall average."