While last month's outlier spike in Information-related jobs, which saw 42K tech sector created in June, has come and gone, the breakdown of the July job additions confirms that some recently well-known trends continue, namely that the bulk of new jobs added remain in low-paying industries. Not only that, but some frank question marks emerge, like for example how did the government add 27K education jobs in July (out of a toal 38K) at a time when shools don't hire. The answer: seasonal adjustments and model quirks.
So where were the July jobs? As our friends at Southbay Research point out, "Obamacare jobs offset weak Industrial and Consumer payrolls"
- Consumer demand is wobbly
- Construction: Weak
- Retail: Weak
- Industrial Sector and related ecosystem remains weak but has bottomed
- Mining (-7K)
- Manufacturing (+9K)
- Truck & Rail (+1k)
- Temp (+17K)
- Obamacare to the rescue: Healthcare +49K
- Leisure & Hospitality (+45K) surges on extra convention-related hiring
- Construction: Despite claims of a strong housing market, Construction payrolls are the weakest since 2012, consistent with SouthBay data which shows a sudden sharp decline in hiring at homebuilders. Reflecting the slowdown, Building Material Retail jobs were also weak (-1K).
- Retail (+15K): Peak Auto sales is evident in Auto payrolls (+1K)
- Temp (+17K)
- Election Year Payrolls: Advertising (+3K)
And the full breakdown: