Employment: Hmmm...
The Market Ticker - Commentary on The Capital Markets
2017-08-04 09:00 by Karl Denninger
in Employment , 298 references Ignore this thread
Employment: Hmmm...
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The screambox says....

Total nonfarm payroll employment increased by 209,000 in July, and the unemployment rate was little changed at 4.3 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in food services and drinking places, professional and business services, and health care.

Oh look - we get people drunk, feed 'em unhealthy food and then suck up more of GDP in overpriced, monopolist "health care".

In fact that's been good for 327,000 "jobs" over the last year.  You need look no further for what's wrong with health care in America; nearly all of those jobs have never and never will provide one second of actual care to an actual person -- they're almost all administrators.

Remember, the usual bleat is that we don't have enough doctors and nurses.  Well if that is true then we have added 327,000 worthless "employees" over the last year that simply serve to vacuum all the money out of your wallet.  We cannot address the cost of "health insurance" without addressing this issue, and doing so trashes the so-called "robust employment situation."

Employment in other major industries, including construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, and government, showed little change over the month. 

Other than government, in other words, those productive industries didn't add people to their payrolls.

The real (household) economy claims a gain of 384,000 jobs last month, with all of them (381,000) coming from a reduction of those "not in the labor force."  In other words people came back into the labor force and found jobs, probably ripping you off in the doctor's office and hospital and, if not, they were serving you booze as a salve for the sore butthole inflicted upon you in same.

Note the employment:population situation continues to improve.  This is indeed a positive; we are getting up toward the bottom of the previous cycle range at 62%, which would be quite good if one ignores how we get there.

Sadly, you can't ignore that -- we're getting there with monstrous "adds" in parasitic employment that sucks off productivity and actual output or gets you drunk after you've been financially raped.

Nobody in the media wants to talk about that and won't because even having the discussion will inevitably lead more than a handful of people to realize that not only can this not continue forever but if the people demand it stop the result will be an immediate and violent unwind of the so-called "progress" we have made until actual productive capacity replaces all the parasitic, essentially-worthless arm-waving nonsense.

Is there anything else interesting in this report?  Yes.  Women outperformed men (by two ticks) in participation rate gains this month (no surprise; they make up more of the medical parasitic class along with bartenders and similar, and both were strong.)

Teen employment went up massively on employment:population rate (from 35.6 -> 36.7%).  If you remember the seasonal hiring showed up last month (a month late) and this month it showed up in the household survey, so that's expected.  As a percentage of the labor force they're a small component (about half a percent) so when they fall off in September they won't bang the numbers all that hard.  Oh by the way, teens don't serve liquor as a rule and they also don't rip you off in the hospital.  Count those among the real jobs, in other words.

Oh, and one other thing.  College degrees underperformed on a major basis.  The participation rate for those with a Bachelor's or better decreased by two ticks while those with less than a high school diploma (which includes most of those teens) ticked up by six.

That $100,000 in debt?

It's working out real well for you -- yet another area of the "eCONomy" filled with non-productive "employees" and ridiculously bloated costs all driven by acts that one could argue ought to be treated as felonies, just as in the so-called "medical system."

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Posts: 412
Incept: 2015-05-03

Vancouver WA
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I always keep my eye open for new job opportunities, one of the things I have noticed in the past few months is the number of healthcare jobs being offered.

Although there are numerous clinician, front and back office support jobs available, I am looking for IT related. My guess is 70% of these jobs are offered through the state and about 20% through hospitals, clinics or the like. That is 90% of health care related jobs being posted

90% of the job descriptions I have read, make me believe there is only about 10% of health care jobs that need to be filled through attrition, retirement or back-fill and are organic and actually needed.

Although I read through most of (IT related) the job descriptions, I stay away from any state sponsored jobs. It also seems a lot of the IT jobs are created to solve problems created by ACA. That means who ever fills those jobs will not and cannot succeed.

Oh there ARE good jobs out there, but you have to walk out from under the shadow of our current "health care" system to see them.

For the young ones out there trying to make it in life, especially if you are carrying the weight of student debt on your back - Good Luck
Posts: 4149
Incept: 2011-04-08

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I live in Boston, and there's a lot of biomedical IT-related work out here.

Some of it is to make the doctor-patient interface easier, which is cool, and I could get behind..

Some of it is to make new devices and technologies to help save lives, or solve a capitalistic business need (plastic surgery), which I can get behind if there's no cost shifting (cash based cool-laser tech, for example). I have a hard time with the hardware makers in general. :-/

But then there's a lot like mangymutt says, are just designed to hook into the infinite money the government pours into healthcare. Those I avoid.

Posts: 945
Incept: 2008-12-17

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When a I dustry has a fixed legal margin, the only growth of profit comes from additional expenses. There is zero desire in health care to have less employees, better pricing of anything they purchase from pens to drugs. In fact they spend all day looking at how to increase their expenses while staying within allowable expenses.
What a farce, it's literally the biggest theft ever done outside war in the history of civilization and the majority that understand that are either participating in or getting paid off by while they feed a massive fiction to the victims of their crimes that has managed to make the narrative about health care as a right and fairness.
Posts: 332
Incept: 2011-03-24

Washington, DC
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Yesterday I had to visit a large construction project in Northern VA for my work. The large percentage of construction workers on the project that I interacted with were not native born US citizens. I travel through out the Mid-Atlantic region for my job from the high rent district and into the 'Hood', from urban to very rural. I see able bodied Americans citizens of all races not working for one reason or another. While the foreign born are becoming a larger percentage of the workforce. I observed within the past few years a streetscape project in downtown DC, where none of the construction workers could speak English, being performed while several blocks up the street there was a housing project with a large group of men hanging out with seemingly nothing to do.

I came up through the electrical trade and worked on small to large construction projects. It was not uncommon to pick up day laborers to fill in when you were temporarily short handed. Most of the day laborers were usually black men, now they are usually Hispanic. Race is not the important factor as much as the fact with the flood of legal and illegal immigrants the labor pool for unskilled/low wage workers is becoming very large. Couple this with the government benefits of not working and we see the US citizen going on the dole and "new Americans" working the jobs usually for less than what the US citizen would be paid. Many of these foreign born folks have a strong work ethic and are putting us to shame. Some do come and scam the system.

I saw this with the Simpson Mazzolli Act in 1986. When fast food and other entry level jobs were trying to find people to fill positions, they were offering above minimum wage, flexible hours, and help with education costs if you were going to school and need the job to help pay for your education. The Simpson Act legalized 3 million illegals and with in a short time the pendulum swung from the employee having the better position to the employer. All those incentives went away.

Until we stop importing labor to keep wages down and keep rewarding folks not to work we aren't going to fix any budget deficit or debt problem. The imported labor sends their money out of the country and reduces the amount of tax base needed to fund the gov't entitlement benefits. The traditional American work ethic is dying and while there are good employees out there, more and more seem to be looking for a way to scam the system and sit out. The people my age that I grew up with worked the fast food, retail, construction laborer, landscaping jobs to start out, to learn and make money for our education. The retail jobs are going away and the others seem to be going to those willing to work for less and under the table. Employers are also to blame for this problem, by giving the jobs to those they know shouldn't be getting them. Some folks are getting themselves into the disability classification, so they now have a tax free income stream.

I think most of the statistics we are bombarded with are fudged to make our current situation look better than it is. While there has always been the scamming and fudging, the percentage of it going on is getting larger and larger. At some point the system is going to break and I think we are seeing the slow ignition to implosion. Most of our politicians do not want to fix this situation because telling the truth is a quick way to be lambasted by the crooked politicians and their lap dog media.

(Politicians), 536 commoditized temple monkeys pawing through the ruins of America in search of bribes. (The District of Corruption) works like a vending machine. You put coins in the slot, select your law, and the desired legislation slides out." Fred Reed. Some editting by me.

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When I was a kid in the 50's and 60's, Doctors were certainly leading citizens, but much like the rest of us with high but moderate earnings. The clinic was the Doctors own small business. Hospitals were usually charity and run by non-profit religious organizations.

Today Doctors are usually quite wealthy, and hospitals are larger corporate entities. The medical lobby has a lot of money, and spreads it quite liberally in campaign contributions.

It does not take a scholar to see the difference. Bean counters not run clinics and hospitals and money is put in the pockets of politicians. Large corporations tend to love non-productive individuals and hate the production part of their industry.

Short of total collapse, it just isn't going to change.
Posts: 149429
Incept: 2007-06-26
A True American Patriot!
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It would if you (and everyone else) stopped tolerating it.

You must like buttsex...

Winding it down.

Posts: 13
Incept: 2016-01-03

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KD wrote:

"Oh look - we get people drunk, feed 'em unhealthy food and then suck up more of GDP in overpriced, monopolist "health care"."

It's the "Eat, drink, and be merry, for tomorrow we die" economic growth program.

Posts: 7
Incept: 2017-06-26

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Another really great post by Karl. Thanks, because you say what nobody else reports on in a truthful way. I know most of the dimwitted hoi polloi won't pay any heed whatsoever, but those of us who are clued-in really value your opinion...

Please keep up your good work...
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Incept: 2017-06-26

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As I examine the so called jobs report, I find that this seems to be a part-time jobs report. In other words, it seems that most of the job growth is in part-time work. Moreover, at least some of the part-time jobs are counted as full time; some are likely double counted; and the wage increase is very small, probably not enough to keep up with rising expenses including healthcare premiums.

As Karl continues to point out: these reports are as phony as the bureaucrats who write the reports and the pols who extol the phony numbers..
Posts: 111
Incept: 2017-06-16

Los Angeles, Ca
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Economist Joseph Stiglitz thought people were focusing too much on the difference of pay between the highest paid and the lowest paid within the same company, where the real problem lies in the vast difference in pay BETWEEN different companies.

Soon, working for one of these guys may be your only choice if we don't stop the monopolization of all the markets:

Posts: 111
Incept: 2017-06-16

Los Angeles, Ca
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The medical community has been caught drugging foster kids awhile back ago:



Then some law makers in 2014-15 finally got around to doing something about it:


Two tears later, this is where we're at:


And of course no one has or is going to jail.

There is a fight going on against monopolistic practices. I don't know what's going on in other states, but here in California two petitions have been filed against Amazon's practices that have been covered by Karl:

Petition from Consumer Watchdog to California department of Justice in March, 2017: http://www.consumerwatchdog.org/resource....

Petition from Consumer Watchdog to the Federal Government in July, 2017 (Bureau of Competition and the Department of Justice, Antitrust Division): http://www.consumerwatchdog.org/resource....

And here's the LA Times reporting in July, 2017: http://www.latimes.com/business/la-fi-am....

And Trump isn't going to a damn thing. Even in terms of data collecting Trump and the GOP Congress killed the FCC rules regarding personal data.

Here: https://www.democraticmedia.org/blog/us-....

Here: http://www.nbcnews.com/news/us-news/trum....

Here: http://www.businessinsider.com/house-rep....

Or just search it out yourself. These rules had to be fought tooth and nail to get even with the Obama Administration, a supposedly progressive administration, and even then he only did it going out.

The argument is that this would hinder the competitiveness of the broadband providers (like Verizon, Comcast, and AT&T) because users would have to opt-in to have their browsing data collected. Of course we know who they mean in terms of competition: Google and Facebook. But Google and Facebook are regulated by the FTC. So they'll continue to play this game between those regulated by the FCC and the FTC.

They also argue against these opt-in regulations because the FCC can still protect consumer privacy under Section 222 of the Communications Act. That's only enforced, if at all, AFTER the damage is done. And it appears many times the FCC and the FTC can't even agree on who enforces what.

Okay, so the real argument is all parties should be subject to the same rules (yeah, that's a first), here in joint press release of the FTC and the FCC: https://www.ftc.gov/news-events/press-re....

Great, easy fix for Trump and the GOP. Extend the opt-in rule for everyone. Yeah, those are crickets you're hearing.

So, yes, you're right people, short of collapse nothing is going to happen because everyone keeps pointing the finger at others saying, it's when "they" wake up. But it's YOU.

No ONE is coming to your aid. NO ONE is going to fight your battles. Not Trump, not the Clintons, not the Obamas, not the Bushes, not the GOP leadership, not the Dems leadership, and not the "everyone" else that needs to wake up.

There are politicians in both parties who know the problem AND are want to fight this consolidation of power, but there's nothing at this point they can do until the people, that includes you, start causing problems, then they have an opening. Until then, they're hands are tied.

Too many sit there smug and arrogant thinking they're in the know so they can lecture to those around them on a Saturday night over beers or their co-workers on how ignorant and naive they are and how "awake" to the games and corruption you are. I honestly think that's what a lot of people do with this information. They don't use it to act, but simply use it to take a pretentious stance on those around them.

In 1999, the Battle in Seattle was won, the peacefully assembled protesters won that day, but the war was lost due to lack of national participation.

Or Washington DC, 2000, peaceful protest against the IMF.

Or in the Occupy Movement in 2011:

I know, they were just dumb hippie liberals because you saw all the YouTube videos of the dumb protesters who gave dumb answers. Yeah, in a mass group of people you can never find any dumb ones. And yet, here we are, still taking it, and getting worse.

The courts have repeatedly sided with public dissent, and yet people still don't do it.

The problems have become so structural and ingrained that it will be a big fight to do it, there will be pain that follows from correcting it, and there's no one easy solution, it has to be a coordinated effort and set of policies across the entire economic spectrum. So stop fooling yourselves on easy solutions. We've simply let these problems develop too long.
Posts: 5756
Incept: 2007-10-08

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I mostly blame the media. They spin, make things up, hide, obfuscate facts and generally spew propaganda.
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