The New Sick-onomy? Examining the Entrails of the U.S. Employment Situation – Blog Post by Daniel Alpert, on July 23, 2013
- “Over 69 percent of the jobs created in Q2 2013 and over 57 percent of all the jobs created in the first half of 2013 were created in the three lowest wage sub-sectors of the economy, Retail Trade, Administrative and Waste Services, and Leisure and Hospitality, that otherwise account for an aggregate of only 33 percent of all private sector jobs. These jobs, in the aggregate, pay an average of only $15.80 per hour, compared with the other two-thirds of private sector jobs, which pay $27.16 per hour. Relative to unemployment benefits and other assistance, jobs at $15.80 per hour put less than $3.00/hour more in the pockets of a newly working consumer.
- About half of the jobs created during H1 2013, and a large majority of the jobs created in Q2 2013, appear to have been part-time jobs that offer employees as little as one hour of work per week, and up to 35 hours of work. Moreover, after falling from a recession high of 9.2 million to a post-recession low of 7.6 million at the end of Q1 2013, the number of people saying they are working part time because they can’t find full time work (part time for economic reasons) crept back up to 8.2 million, double pre-recession levels.
- The U-6 underemployment rate, incorporating those working part time for economic reasons, plus another 6.6 million folks who the Bureau of Labor Statistics does not count as part of the labor force, but who nevertheless say they want a job, as well as others, rose during Q2 2013 to 14.3 percent from the 13.8 percent it registered at the end of Q1. The U-6 rate topped out at 17.1 percent during the Great Recession, and has only declined by 16.4 percent from its peak, while the official U-3 unemployment rate has declined by 24 percent.”