The Deception Continues: October Payrolls Rise 161,000, Unemployment Rate Dips To 4.9%

This morning, we got more happy news from the Bureau of Labor Statistics. The talking heads announced the results of the Establishment Survey: 161,000 jobs added in October. Did that sound good? You have to look under the hood, dear reader. Consider these facts from the same report.

The Household Survey posted a drop of 43,000 employed workers to 151,925,000, the first monthly decline since April. While the unemployment rate dipped modestly from 5.0% to 4.9%, labor force participation declined from 62.9% to 62.8%. According to the Household Survey, 425,000 discouraged people left the workforce in October. There are now 94,609,000 working age Americans not in the labor force, the most ever.

labor-force-participation-rate

Quality of work means just as much as quantity. Since 2014 the U.S. has added 547,000 low-paid waiters and bartenders and lost 36,000 higher-paid manufacturing workers. Here’s what that looks like.

waiter-bartender-vs-manufacturing-jobs

Average hourly earnings rose by a hotter than expected 0.4% in October, beating estimates of 0.3%, while September was also revised upward from 0.2% to 0.3%. Maybe American workers are finally getting a much deserved raise? Nope. Fooled you again. The increase was for ALL workers. Unfortunately, 82% of American workers didn’t get a raise. The wage increases went to the people at the top of the workforce.

wages-of-non-supervisory-workers

wages-of-supervisory-workers

The qualitative component of the October jobs report was really ugly again. In September, the Household Survey revealed that the number of part-time workers soared by 430,000 as full-time workers actually declined by 5,000. The trend continued in October, when another 103,000 full-time jobs were lost, offset by an increase in part-time jobs of 90,000.

full-time-vs-part-time-jobs

The number of multiple jobholders rose to 8.050 million, the highest number on record! Many Americans are being forced by low pay to take more than one job.

multiple-jobholders

This is the Obama economic recovery, a miracle of statistical deception and declining quality of work. Please don’t believe the headlines.