As usual, today’s new job report from the Bureau of Labor Statistics isn’t what it seems, and proves once again that government reporting is simply a political tool for the state’s benefit rather than as a true barometer of the economy. And all one simply has to do is look at how the Feb. 5 number came in far below analyst projections, yet the unemployment rate fell below 5% and to its lowest level in eight years.
And following a trend that started in 2009, and which has continued on the same path for the past six years, the vast majority of jobs created are low paying and part time service sector ones, with more given to foreign workers, both legal and illegal, than to American citizens.
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.
In other words, 70% of the job gains in January went to minimum wage workers. – Zerohedge
But of course this wasn’t the only piece of propaganda to come out of the BLS and Obama Administration on Friday. In addition to taking credit for unemployment falling below ‘five percent’, the government data compiler also reported that wages rose by .3 percent, which is astonishing considering that retailers are right now closing nearly 1000 stores after the Christmas shopping season that ended down even worse than the year before.
The fact of the matter is, Americans have not recovered from the 2008 Credit Crisis while Wall Street made billions from free money, and swapping zero interest rates loans for 2% yields in government bonds. And as we head into not only another recession, but perhaps even a catastrophic collapse, people relying upon part time jobs and low wages will experience devastating times when the economy reverses beyond the ability of the government to spin the data.
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.