minutedots- connecting the dots that matter in market news

Phiillip Larrea By Phiillip Larrea, 3rd May 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/2us46ofs/
Posted in Wikinut>Money>Investing

Inside the April jobs report, an analysis of the minute dots.

April jobs report- the minutedots analysis




165,000 jobs added in April according to today’s release from the Bureau of Labor Statistics. In addition, the prior month’s numbers were revised upward. Sounds good- but is it?

There are some worrying data points within the report that paint a less-than-rosy picture. First we look at the labor participation rate- the true measure of whether more people are actually working. Here we see that the percentage, 63.3%, is at its bedrock bottom going back 30 years or more.

Those that are working are making less money, as indicated by the slight decline in hours worked, both regular and overtime. The average annual wage increase at 1.9% has been entirely eroded by the 2% payroll tax increase (FICA). When we factor in higher deductions from paychecks as a result of increased health insurance premiums, plus 2% inflation, the average worker is in a much worse spot than they were in 2012.

Finally, the types of jobs added were predominately of the lowest quality. 98,000 of the total 165,000 jobs created were in retail, food service, and temp hires. Today the markets appear to be cheering the news- not because the news is good, but because it wasn’t awful on the one hand, but certainly not encouraging enough to keep the central bankers from their appointed rounds of currency invention.


Contact Phillip Larrea at phillip.larrea@gmail.com

Tags

Economic And Social Issues, Investments, Jobs, Politics

Meet the author

author avatar Phiillip Larrea
Editor, "minutedots" investment newsletter. Widely published poet and author of 2 books, Our Patch, and We the People. Instructor and public speaker.

Share this page

moderator Mark Gordon Brown moderated this page.
If you have any complaints about this content, please let us know

Comments

Add a comment
Username
Can't login?
Password