As today’s polar opposite Wall Street paradigm extorts, bad news is good news for banks, corporations, and investors. And with today’s massive drop in new jobs for the month of April in relation to analyst expectations, the ‘good news’ is that chances of a Fed rate hike in June have now dropped to almost zero.
But for the rest of the American people, bad news is always bad news, and underlying the 140,000 new jobs ‘created’ by the economy last month, those who need employment the most lost positions while those who need it the least, gained.
In addition to the troubling trend revealed by the yet again declining labor participation rate as a result of hundreds of thousands of Americans dropping out of the labor force (and lack of entrants), one other recurring concern we have had with the jobs report is that new job growth has disproportionately gone to elderly workers, those 55 and over at the expense of young (16-24) and prime aged (25-54) workers.
This trend reverted itself in April. As the chart below shows, in April the household survey showed that when broken down by age group, a grand total of 270K jobs were lost, but it was the composition that was the issue because once again it was the prime-aged workers that took the brunt of the job cuts, as a whopping 284K workers aged 25-54 lost their jobs in the past month.
This means that while total workers aged between 16 and 54 are still some 3.5 million below where they were in December of 2007, during the same period workers aged 55 and over have grown by a whopping 8.1 million to a new all time high of 34.4 million, and as of this moment the oldest worker group comprises a record 22.8% of the total number of workers (per the Establishment survey) of 151 million. – Zerohedge
The majority of jobs created in April were once again part-time temporary hires in the service sectors of business services, education and health, and of course, hospitality and leisure (bartenders and burger flippers), with decent paying jobs like manufacturing losing thousands of positions.
None of today’s jobs data provide even the least amount of validation that the economy is doing well, and that the underlying problems beholden to the millennial generation are in fact growing to worse levels than ever before. And it should be no wonder why the 94 million Americans out of work who are no longer even counted by the government should even bother to try to find a job, because in the end it is more prudent to subsist on welfare than it is to work 40 hours a week earning much less than they can get from free benefits.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.