It’s that time of the month again when the Hopey and Changey economic recovery gets to spin the jobs numbers for more political points. And with today’s massive blowout over what most analysts forecast for new jobs created on Nov. 6, the world is right once again, and there is nothing to worry about in the economy.
Well, perhaps not so fast.
When we take a look at October’s job numbers, which came in at a whopping +271,000, we see a scary dichotomy that is sure to make student loan ridden millennials cry in their sleep. That is because not only did the majority of new jobs (378,000) go to workers in the age range of over 55, but workers in the current generation lost 35,000 jobs making it a zero sum game for those ever wanting to pay off their loans and one day even dream of buying a home.
As the chart below shows, in October the age group that accounted for virtually all total job gains was workers aged 55 and over.They added some 378K jobs in the past month, representing virtually the entire increase in payrolls. And more troubling: workers aged 25-54 actually declined by 35,000, with males in this age group tumbling by 119,000!
Little wonder then why there is no wage growth as employers continue hiring mostly those toward the twilight of their careers: the workers who have little leverage to demand wage hikes now and in the future, something employers are well aware of.
The next chart shows the break down the cumulative job gains since December 2007 and while workers aged 55 and older have gained over 7.5 million jobs in the past 8 years, workers aged 55 and under, have lost a cumulative total of 4.6 million jobs. – Zerohedge
Graphic courtesy of Zerohedge
Having so many ‘retirement age’ workers receiving the bulk of new jobs means that wages will remain stagnant or even decline since according to the breakdown of newly created jobs, most were in the retail, education, and medical sectors.
The stock markets around the world have recovered nearly all of their August losses, and this is due to central bank interventions, and a fresh round of corporate buybacks. Yet anyone who expects the consumer to pick up the slack and change what analysts forecast as another below 2% GDP for the year, simply have to look at the fact that the only things Americans will be buying with their meager income are necessities they already now can’t afford to buy.
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.