Thank you Tyler Durden! Perhaps we are focused a little too much on “Flexible Employment” and the “Gig” Economy, but I can’t begin to tell you the immense frustration that comes from sitting with potential Investors (those that want to give Hourly $$), who “don’t see the market”. It’s fascinating to talk to our members and people who are in the trenches who tell us what a fabulous idea Hourly is, only to then get blank stares from across a board room. Clearly there are two economies at play and I felt slightly vindicated reading Zero Hedge article this morning, entitled The Two Scariest Charts From Today’s NFP Report, Or The Real “New Part-Time Normal”
If you’ve not read Zero Hedge before their mission is “widen the scope of financial, economic and political information available to the professional investing public, and skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become”…basically they pull no punches, and we like that around here.
Today’s post addresses the April Job’s numbers & NFP (Non-Farm Payrolls):
Back in February Zero Hedge was first to point out that while jobs may be growing (modestly) and the unemployment rate declining (rapidly, on the back of all those leaving the labor force), it was the quality of jobs that was troubling. Indeed, as today’s NFP report once again showed, the average hourly earnings barely budged at $23.38 from $23.37 last month, and in fact declined on an inflation-adjusted basis. Why? Because as we predicted both in February (and in 2010) the US is increasingly becoming a population of part-time workers, as full time jobs disappear for good, and are offshored abroad at best. April confirmed everything we had been warning about: in the month, full time jobs dropped to 114,478,000 from 115,290,000 an epic drop of 812,000 in full time jobs which was the biggest since… March 2009! The offset? Why a surge in part-time jobs of course, which increased by 508,000 in the month of April. So while seasonally adjusted, birth/death recasted jobs may have increased by 115,000, the real quality jobs, imploded, which unfortunately is merely a part of a longer-term secular trend as part of the new part-time normal.