Thursday, July 12, 2012

Full time jobs are so last decade

Fellow Americans, welcome to the post credit crisis economy.  In a new report on July 11, new data is showing that part time jobs are replacing full time jobs at a rate of 10 to 1.  That is 10 part time job hirings for every full time position.

Recovery?  The drugs must be cheap for financial analysts who appear to smoke the crack each time they come before the television screen to lie about job growth and creation.

The more we sift through it, the more we didn't like it. Even with the bump in June hours worked and average weekly earnings, the reality is that the Q2 results for both slowed markedly. The economy has hit stall speed yet again — the third time in the past three years.
On top of that, some other details in the data were disturbing. The ranks of the unemployed rose 29k on top of a 220k surge in May. Those who were unemployed and just completed temporary work soared 218k after a 137k increase in May to stand at the highest level since November 2010 (right when QE2 began!). The total pool of available labour jumped 258k to 19.3 million which means that there is now but one job opening for every six people out there who are either actively or passively looking for work. No wonder wage pressures are fading fast.

There are some pundits who believe that the +25k pickup in temp agency employment is a good sign since in the past this sector acted as a leading indicator for job creation... if only we can bring back those old days. In today's world, the reliance on temp agencies is akin to "just in time" employment strategies — the use of temps is outpacing outright new hirings by a 10-to-1 ratio. The reality is that few businesses want to commit and this shows through in the Household Survey as well with part-time employment in an uptrend and full-time in a downtrend. Moreover, according to a Manpower survey, 30% of temporary staffing this year has led to permanent jobs, down from 45% in 2011. - Gluskin Sheff via Zerohedge
Welcome to the brave new world.  Welcome to the rewards of the Progressive utopian society, where government benefits spring eternal, and careers are nothing more than low wage jobs that have little security, but help politicians claim they are helping Americans with unemployment.


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