Jeremiah is thrilled to see the June payrolls report almost to 200,000. May was revised upward, too. So, what is going on with GDP? Recovering employment should mean recovering GDP. That is, more people working ought to mean more production. Here at Zero Hedge, the assertion is that the BLS is lying about the jobs situation.
Well, if you look at the breakdown in Table B, you will see continued weakness in goods producing jobs, and losses in manufacturing – what we old timers call “good jobs.” Job gains in the service industry might mean accountants and engineers, but no – the leaders are:
- Administrative and waste services (+38,500)
- Food services and drinking places (+51,700)
Amusement and gambling did pretty well, too. If you are a young person at the bottom of the skills ladder, this hiring is good news for you, but it’s not great for the overall health of the economy. We need a certain number of people with good jobs to pay the taxes and support the government.
It’s really easy to bring in another bartender or waiter and instead of one guy, have two guys working half as much.
Also, if you are in one of these service jobs, you may not be working full time. We have noticed a lot of new faces at the local eatery, and we suspect there is some truth to this theory that they are staffing up so that they can dodge Obamacare – by cutting your hours.
As an “unintended consequence,” this one is hard to excuse. The French have had arbitrary labor laws, with the same negative results, for years now. Congress should have seen this coming when they passed the law.
See also: How to Control Health Costs