American Elephants


A Brief Comment on Obama’s Rose Colored Glasses by The Elephant's Child

President Obama: press briefing, Friday, February 5, 2016, on the just released jobs report:

TGIF, everybody.  I wanted to stop by, because as you’re aware by now, America’s businesses created another 158,000 jobs last month.  After reaching 10 percent in 2009, the unemployment rate has now fallen to 4.9 percent — even as more Americans joined the job market last month.  So this is the first time that the unemployment rate has dipped below 5 percent in almost eight years.  Americans are working.

All told, over the past six years, our businesses have added 14 million new jobs.  Seventy-one straight months of private-sector job growth extends the longest streak on record.  Over the past two years, 2014 and 2015, our businesses added more jobs than any time since the 1990s. …

So, as I said at my State of the Union address, the United States of America, right now, has the strongest, most durable economy in the world.  I know that’s still inconvenient for Republican stump speeches as their doom and despair tour plays in New Hampshire.  I guess you cannot please everybody.

Zero Hedge: 02/05/2016, 10;14 a.m.
Headline : “70% Of Jobs Added in January Were Minimum Wage Waiters and Retail Workers”

For those curious where the big jump in earnings came from, the answer appears rather simple: the reason, according to the BLS’ breakdown of jobs added in January (per the Establishment survey), of the 151,000 jobs added in the past month, retail trade added 58,000 jobs in January, while employment in food services and drinking places, aka waiters and bartenders, rose by 47,000 in January.

Simple: state regulations demanding higher wages for minimum wage workers starting January 1, which as discussed previously will promptly lead to employers passing on wage hikes costs to consumers in the form of 10% higher food prices starting in NYC and soon everywhere else.

This is the full breakdown of January job gains:

  • Retail Trade: +58K
  • Leisure and Hospitality, which includes food workers: +44K
  • Professional and business service workers, excluding temp workers: +34K
  • Manufacturing workers posted a curious rebound, rising by +29K. We are confident this number will be revised promptly lower.
  • Construction +18K
  • Wholesale Trade: +9K
  • Education and Health saw a big and unexplained drop from 54K to 6K
  • Information services added just 1K workers
  • As for sectors losing workers included Temp Help workers, Transportation and Warehousing (courtesy of the truck and train recession), Mining and Logging, and Government workers.

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