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NYT has been predicting the Great Depression since the day Trump took office. Fun to watch them squirm under the Trump economy! Liar's club (NYT) in full meltdown.
Adding jobs is a very simplistic measure of economic success or failure. Sure, it's a measurement, but it's only one. Wages have been rising at a snail's pace. Rents have increased to an all time high of $1412/month. The average wage for an individual is $3460/month. So 40% of their income would be spent on rent. Of course this hypothetical person might spend less on rent, but it's quite possible they would have to spend more. So having a job doesn't count for much if the employed person can't pay their bills.
How many of these new jobs pay enough for a person to afford a studio apartment, a used car, food, utilities, and health insurance? I’m betting that only 30% of these new jobs fit that category.
Without a “job quality” metric, these job statistics are largely meaningless.
Good question. They make sure to count those jobs that pay minimum wage and call it a win, because most of them are just that.
I think you would be naive to not be concerned that this 9 year record of positive monthly job reports might end soon. We are still waiting for real growth of the middle class,decrease in poor/working class. After 9 years of job growth and those groups still seem to be waiting for their economic situation to get better. They aren't maxing out there 401K's so they aren't seeing the stock market gains...
I am relieved June initial job numbers are good. I remain cautiously optimistic.
Location: Somewhere between the Americas and Western Europe
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Quote:
Originally Posted by Scooby Snacks
Adding jobs is a very simplistic measure of economic success or failure. Sure, it's a measurement, but it's only one. Wages have been rising at a snail's pace. Rents have increased to an all time high of $1412/month. The average wage for an individual is $3460/month. So 40% of their income would be spent on rent. Of course this hypothetical person might spend less on rent, but it's quite possible they would have to spend more. So having a job doesn't count for much if the employed person can't pay their bills.
1) Demand due to the sheer number of people wanting to live somewhere, regardless of the local economy;
2) The local economy pays higher wages in an area which allows for higher rents.
If the rents are increasing in a place where wages are low, it's because there are more people than places to live. The market value of labor in the area isn't going to magically go up because the rents go up.
Remember this the next time you Democrats take a position that the borders should be open or that immigration should be more liberal. More people = higher rents. And shoveling more and more of the world's poor into the mix isn't going to help.
The U3 unemployment rate is never a proper indicator for the economy.
The U3 can go down, making it look like jobs are booming, and yet in reality, the unemployment rate only went down because more people have given up looking for a job, have left the labor force, because the economy is that bad.
Then, the U3 unemployment rate can go up, making it look like the economy is tanking, when in reality the economy is so good that the people, who previously gave up looking for work, are in fact returning to the labor force.
The truth is, the unemployment rate is so low that we are in uncharted territory. To have created 220,000 jobs with 3.7% unemployment is really phenomenal.
This creates are very interesting scenario for the Fed at the end of July. Cut rates now with this latest jobs report and it shows they know how bad things really are (and are going to get) beneath the surface. Don't cut rates and markets tank because they have already priced in a rate cut.
Remember that Trump and the financial press have been screaming for a rate cut before this latest jobs report. Because "the greatest economy ever" needs a rate cut with rates at 2.5% lol.
Adding jobs is a very simplistic measure of economic success or failure. Sure, it's a measurement, but it's only one. Wages have been rising at a snail's pace. Rents have increased to an all time high of $1412/month. The average wage for an individual is $3460/month. So 40% of their income would be spent on rent. Of course this hypothetical person might spend less on rent, but it's quite possible they would have to spend more. So having a job doesn't count for much if the employed person can't pay their bills.
Adding jobs is a very simplistic measure of economic success or failure. Sure, it's a measurement, but it's only one. Wages have been rising at a snail's pace. Rents have increased to an all time high of $1412/month. The average wage for an individual is $3460/month. So 40% of their income would be spent on rent. Of course this hypothetical person might spend less on rent, but it's quite possible they would have to spend more. So having a job doesn't count for much if the employed person can't pay their bills.
How can 200k jobs mean a cooling economy. If a dem were president, he'd be called the greatest of all time by NYT. The media keeps trying to suppress enthusiasm for the future of the economy, but it keeps refusing to obey.
Meh, Obama AVERAGED more than 225K job growth for the entire year in 2014 and 2015 and all we heard was that they were cooking the books, low wage part time jobs, slowest recovery in historyr...........blah, blah, blah.
Now that the Trumpskull is in office we are supposed to be turning cartwheels for the same type of performance.
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