USA: the labor market actually sends signals of crisis and poverty
US labor market data was released on Friday, and it looks good, but looks can be deceiving . The US economy added 372,000 paychecks in June 2022, much better than the market's forecast of 268,000 and only slightly below the revised 384,000 downside in May. The figures are in line with the average monthly increase of 383,000 in the previous three months, again indicating a rigid labor market. A notable increase in jobs occurred in professional and business services (74,000), in particular in the management of companies and businesses (12,000), in the design of information systems and related services (10,000); in the leisure and hospitality sector (67,000), especially in catering services and consumer premises (41,000); and in healthcare (57,000), including outpatient health services (28,000) and hospitals (21,000).
However, there is something NOT right, because this data is in stark contrast to another important but underestimated number: the assessment of the number of families who have a job, the household survey. This gives opposite data, with a collapse of 315 thousand families that are active on the labor market, as shown in the graph reported by Zerohedge
The decline is substantial and let us ask ourselves a question: how do families and families work less when there are more jobs? Among other things, the decline in working families was very strong in both part-time and full-time jobs.
Normally the number of jobs went hand in hand with the number of jobs created, that is, paid paychecks, but, at some point, this parallelism ceased. The system broke:
We now have 1.5 million jobs of difference between the number of total jobs, wages, and the number of working families. What happens?
Simply many more families are doing more jobs at the same time
A lot more people are doing more jobs. So we have an increase in the number of jobs, but also a decrease in the number of working families. The number of people doing the most jobs is at its highest since 2008
What does this mean? That families are increasingly poor and are obliged to do more jobs in order to meet their expenses. At the same time, however, the number of families and people who lose or leave their jobs increases.
So we have that job growth is concentrated in fewer and fewer people who work more and more, but this is not a sustainable development formula. Sooner or later the system will fail, because you can't ask a few to work 24 hours a day to keep the most. Furthermore, we have more and more a division between the few who float, going mad to look for work, and the many who sink and are passive elements of society.
A society of this kind is obviously heading towards its end.
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The US article: the labor market actually sends signals of crisis and poverty comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/usa-il-mercato-del-lavoro-in-realta-manda-segnali-di-crisi-e-poverta/ on Sat, 09 Jul 2022 10:00:26 +0000.