Looking behind the US Employment Report
The White House is delighted over the December jobs' figures, released by the Labor Department this morning. You'll be hearing a lot about how the President was able to increase jobs by 200-Thousand in the last month of the year. But it's hard to find many press reports on the numbers behind that number. Wall Street looked and yawned, putting stocks to bed for most of the day. Here are a few reasons why: People who lost their jobs are coming back to work with an average pay cut of 19%. Those who kept their jobs are on average, being paid about the same as they were in 2007, but in many cases are now vulnerable to layoffs as employers can get the out-of-work, more than willing to work for less. Of the 200-Thousand a fifth, 42-Thousand are couriers and messengers most of whom will be laid-off now that the holiday season is over. Comparing apples to apples, the December 2010 to December 2011 shows an unemployment drop from 9.8 to 9.3%, but that's for low paying service occupations. Same with truck drivers, a drop of 1.5% in a year. Construction, with some good pay in here, where 20.7% were out of work a year ago, is now down to 16.4%. The 33 Million office workers, file clerks, typists, etc., are enjoying a resurgence of 87-Thousand in a year. But what about the high paying professional jobs--the ones for which we are supposed to prepare in a college? Well, there's a reversal on those, from 3.8 to 4%, or from 31,310,000 in December, 2010 down to 30,769,000 last month. That's fewer Americans working in high paying professional jobs. The factories are hiring again, but at substantially lower pay than before the economic mess of 2008. And Mr. Obama, there are still 1.4 Million fewer Americans employed than when you took office.