Submitted by Dr. Paul Craig Roberts – Institute for Public Economy
According to Friday’s (January 8) payroll jobs numbers, almost 300,000 new jobs were created in December. Additionally, the previous two months were revised upward by 50,000 jobs. Apparently, the equity market did not believe the report, with the averages moving down today.
As I have pointed out almost monthly for what I think could be approaching two decades, the alleged job growth always takes place in nontradable domestic services, that is, in areas that do not produce exports and have no competition from imports. This is the job profile of a Third World country.
Twelve years ago I predicted at a major Washington, D.C., conference that was nationally televised that in 20 years the United States would have a Third World economy if jobs offshoring, which benefits only corporate executives and shareholders, continued.
Jobs offshoring has continued, and judging by the payroll jobs reports from the US government, the US is already a Third World economy.
The presstitute financial media—and what they are is a bunch of whores—always reports the alleged jobs increase as if it is a great thing, testimony to the continuing strength of the American economy, and so forth. Only a handful of us look at the data and reveal its meaning. Once again I will strip away the Matrix and show you the reality.
Allegedly, the US economy has been in recovery since, if memory serves, June 2009. If so, it is an unusual recovery. Normally, the rising job opportunities associated with economic recoveries bring entrants into the labor force, but the US labor force participation rate has been declining. In December, 2015, there are 1,185,000 fewer Americans in the labor force than in December 2014; yet, the working age population is higher today than a year ago.
The reported unemployment rate does not include “discouraged workers,” that is, workers who unable to find jobs have ceased looking for work. The reported unemployment rate of 5% only counts non-discouraged workers who are still expecting to find a job. The actual unemployment rate, that is, the rate that includes Americans who have given up hope of finding employment, is 23%. Currently, there are 94,691,000 Americans of working age who are not in the labor force. In other words, the US Gross Domestic Product (GDP) is deprived of a large percentage of its labor input.
Now, we will pay attention, unlike the financial presstitute media, to the age groups who benefited, according to the BLS, from the 292,000 December new jobs. About half of the alleged new jobs—142,000—went to the 55 years old and over age group. This age group consists primarily of retirees who have found it necessary to supplement their retirement income and of those near retirement who are working in order to compensate for the lack of interest on their savings due to the Federal Reserve’s zero interest rate policy. These are part-time, lowly paid jobs without benefits.
Americans of prime working age, 25 years old to 54 year old, only received 16,000 or 5% of the new jobs.
Those aged 46 to 54 lost 165,000 jobs. In other words, middle aged people are losing their jobs before they can provide for their retirement.
There are 527,000 more Americans working multiple jobs in December 2015 than in December 2014.
Now, as we have done so often for many years, let’s look at the make believe jobs that the BLS claims. Almost all of them are in lowly paid domestic services, such as waitresses, bartenders, couriers and messengers, employment services, social services and health care (primarily ambulatory health care services).
The conclusion is that if we believe the payroll jobs report, the United States is now an economy that only creates Third World jobs in lowly paid domestic services.
And yet this non-economy on the verge of collapse is said by the idiots in Washington to be a super-power.
What a total joke!