Where The Jobs Were: Waiters And Bartenders Topped The List

We already showed that contrary to the strong headline payrolls print, the sole source of job gains in July was part-time jobs, which rose by 393K in the month, the biggest monthly increase since September 2016, as full-time jobs sunk by 54K. Which is why it should not surprise that of the 209K jobs added according to the Establishment survey, the sector that added the most jobs was the "food services and drinking places", i.e. "waiters and barenders" category, which added 53,000 jobs, the highest monthly increase since March 2014. There have now been 89 consecutive months without a decline for waiter and bartender jobs, the strongest sector for US employment. Needless to say, these jobs fall within leisure and hospitality, that sector pays the worst wages, an average of $13.35 an hour, and $331.08 a week.

Next was professional and business services, which added 49,000 jobs. Within this category, administrative and waste services added 30,000 jobs, while temp workers rose by 14,700. The good news here is that hourly pay for this group averaged $26.07, and weekly pay $928.09, up 2.5% from a year ago. The bad news is that most of the jobs were in administrative and temp services, the lowest paying groupings.

Health care added 39,000 jobs, with job gains occurring in ambulatory health care services (+30,000) and hospitals (+7,000). Health care has added 327,000 jobs  over the past year.

Employment in mining was essentially unchanged in July (+1,000).

While no other sector made a significant contribution to the July report, it is worth pointing out that for the second consecutive month there wasn't a major job sector with a decline in jobs.

Commenting on the job distribution, Andrew Zatlin of SouthBay Research said "manufacturing hiring is settling down: oil related capex hiring is pausing and autos are hitting the brakes. This offsets other gains. That leaves services to drive the hiring, and it's mostly positive. Healthcare hiring strengthened after the ACA repeal debacle.  Temp hiring is also steady."

In its observation of overall wge growth, which surprised to the upside rising 2.5% for all workers from a year ago, more than the 2.4% expected, that number can often be skewed by gains at the top. Furthermore, these are nominal numbers: assuming a 1.6% CPI as reported in June, that means "real" wage growth is roughly 1%. As the WSJ points out, "it's hard to push the economy very far when consumers are seeing only 1% wage growth."


drgizmo Looney Fri, 08/04/2017 - 10:08 Permalink

400k and no so good jobs shit shit shit ...as old soldier now at 66 ...be advised ...now/currently... 10,000 a day retire ... that would be ahh about 300,000 good jobs for the most part ... give or take also 10,000 a day had to cash out ... 401K ... like i will about 3 years ... if we make it to there so... net net looks bad ...real bad 400K bad jobs  -300k good jobs = we are fucked...

In reply to by Looney

bigkahuna Looney Fri, 08/04/2017 - 10:24 Permalink

Yeah - these guys have been putting this concocted data out for way too long. They have no idea how many jobs were created or lost. They DO do a good job of pretending to care though. Also, I believe that ZH along with the intended audience of a bunch of financial geeks are the only people who watch this with any kind of scrutiny. Everyone else sees the headline and thats it.

In reply to by Looney

cpnscarlet Fri, 08/04/2017 - 09:50 Permalink

"it's hard to push the economy very far when consumers are seeing only 1% wage growth."But...but...but.... Paulsen just said that we have great wage growth and this economy can go on forever!!!

innertrader Fri, 08/04/2017 - 10:03 Permalink

AS LONG AS the big boys can keep importing their labor force, everything is simply wonderful!  Just kidding!!!SETH RICH!EBERWEIN! TRIUMPH with TRUMP!!!

Peter K Fri, 08/04/2017 - 10:07 Permalink

Obamacare is killing the hiring of full time staff.Intent was to eliminate the bourgeoise... I mean the middle class.Kulaks must be eradicated in order to get the just utopian society that Obama craves...

NoWayJose Fri, 08/04/2017 - 10:08 Permalink

I suppose it makes sense to walk into a job interview on the last day of the month, when 6999 of the same job have been hired thus far in the month. You must instantly be hired in order to make the report come out perfectly at 7000.

Of course, if it is the end of the month and 6,000 jobs have been created - then you can forget about it - because no one wants to report 6,001!

Deep Snorkeler Fri, 08/04/2017 - 10:09 Permalink

Once a Powerhouse Industrial-Techno EconomyAmerica now reduced to absinthe-soaked Tinker Toys.Economic non-growth, strange non-profits,an empire of tattooed baristas,gender-shifting half humans,trajectory unknown.Low sperm counts,beget no sperm counts.Human devolution is Earth's relief.  

Phyz Stacker Fri, 08/04/2017 - 10:10 Permalink

When people lose their job, house etc. they become depressed and consume alcohol.  Hence the increase in Bartenders.  Recession proof occupation.  Who do Bartenders serve ?  Other Bartenders and themselves.  LET'S PARTY like its 2007 !

scubapro Fri, 08/04/2017 - 10:16 Permalink

  why is it that the number of new p/t jobs less the loss of ft jobs, is greater than todays reported increase in total jobs?    are 'total jobs' in todays reports some kind of full-time equivalent?

insanelysane Fri, 08/04/2017 - 10:22 Permalink

They are going to need to rename the "service" industry because service at the restaurants and pubs that I frequent is almost non-existent.  The waitstaff disappears for long stretches of time.  I am guessing to play with their phones and ingest drugs.  I can cook steak and burgers on my grill and my fridge is only a few feet away if I want another beverage.  Really isn't much of a treat to go out and not get waited on.

Consuelo Fri, 08/04/2017 - 10:25 Permalink

   "That leaves services to drive the hiring, and it's mostly positive."Which is another way of saying that the cart drives the horse...

baldknobber Fri, 08/04/2017 - 10:27 Permalink

An oldie but a goodie jokeSo a laid off welder, mechanic,machinist walk into a bar and the Bartender says You are all hired part -time at 8 bucks an hour Wait , that's not as funny as I remember it