Schiff: We Have Less Unemployment, Only if You’re a Part-Time Bartender or a Waitress

Bartender - Public Domain

On Friday, the Non Farm Payroll jobs numbers came out. There were 210,000 jobs  added and the unemployment rate went  down to 5.8% from 5.9% in October. Wall Street was looking for 240,000 jobs, but we missed it.

Nevertheless, the 1/10th less unemployment rate and the meager jobs added was again shouted from the rooftops by the lamestream media, saying that the economy is just getting better and better.

This is the grand lie, the great deception, the cooking of the government numbers, the Propoganda machine that we have been experiencing regarding this non-recovery of the economy.

“Add all these up and you have 109,000 jobs that are no good, low-paying jobs. 
If you have one of these jobs, and you used to be an engineer, are you supposed to be happy about the job?” Schiff


Fed Chairman Janet Yellen said, “7.5 million part-time workers who want full-time jobs are inflating the broad measure of underemployment.” Yet even with the cognizance of low-paying, part-time jobs dominating the job market, they are still counted as a “job” in the government job numbers. This number is then touted to  as  an increasing economic recovery and less unemployment.

Wolf Street says, “In 2008, amid soaring layoffs as the financial house of cards was coming down, part-time employment jumped! By July 2009, there were 27.7 million part-timers, even as full-time employment was being decimated. That’s an increase of about 3 million since the beginning of the Great Recession – almost 12%!

The month-to-month numbers are volatile, but the trend has remained clear since then: part time employment continues to grow. It exceeded 28 million in May 2012, then again in June and July 2013, and once again in June and July 2014. In October, there were 27.7 million part-timers. A terrible trend for a “recovery”.

Peter Schiff gives his analysis of the October jobs report from the Bureau of Labor and Statistics:

“The single biggest category of jobs added was in restaurants and bars,which added 42,000 jobs in October. A much bigger than normal than waitresses and waiters and bartenders were created.

The media makes a big deal about it being over 200,000 per month. But the hourly wages were up 1/10th, which was very low. One of the reasons that people are tending bar and waiting tables is they  are taking jobs that they don’t want. ”

In addition to the restaurants and bars jobs, we got 27,000 jobs in the retail trade. Again, low paying jobs, part-time. Then temporary jobs were up 15,000. These are not good jobs.

unemployment rate numbers october 2014

“25,000 jobs in healthcare. Some may be decent paying, but the majority are not. Add all these up and you have 109,000 jobs that are no good, low-paying jobs. If you have one of these jobs, and you used to be an engineer, are you supposed to be happy about the job?

Are you going to go vote for a Democrat because you are so thankful because you have a job? No, you don’t have a job you can support a family on.

If the Labor Force Participation Rate was the same rate as the day Obama was elected, we’d have unemployment at over 10%.

PLUS YOU also have the escalation in the employment costs, such as Obamacare, so if employers have to spend money on regulations, they have less money to pay workers.

One of the big threats to these jobs is the minimum wage increase. When you raise wages, employers want to hire less. If we keep pushing these minimum wage hikes, these companies are going to mechanize and use robots.

Beneath the surface, hey it’s great news, but it’s not a good picture. That’s why we did have a rally in gold, because we did not get a good number. The effects of QE3 are wearing off, and the hangover is beginning. Maybe this is the last report of being over 200,000 jobs.”

Take a look at this ominous trend.  We will soon have more waiters and bartenders than actual manufacturing workers:


The REAL Unemployment Rate Is…

shadowstats unemployment rate

The real unemployment rate has been 23% for several years now. This figure counts in the people who have dropped out of the workforce, in essence, gave up on finding a job. It does not count part-time workers, so if that were figured in, then the unemployment number would even be higher than 23%.

“When we get to the Christmas season, a lot of these retail jobs are added by stores expecting a lucrative Christmas, and I don’t think it’s going to happen.”

“I don’t think that this Christmas is going to be nearly as strong as people think. And these jobs will be layoffs after Christmas.

Why aren’t wages rising? There’s a whole army of people who are not being counted as unemployed, so they don’t have any bargaining power.  If they make waves, then there is a ton of other people the employer can hire in their place.

Now the stores want to be open all day Thanksgiving day. Other stores are afraid by the time Thanksgiving is over, the consumer won’t have enough money the day after Thanksgiving.”

Consumer Credit Up in Only Cars and Student Loans

“We got consumer credit numbers out on Friday, and it was for car and student loans. Not for credit card borrowing. Why is all this credit flowing in that direction? The government is subsidizing them. You have to qualify for a credit card without a guarantee, so it’s not a guarantee.

What are the other reasons we have this student loan debt? Not that they want the education, they just want the money that they get from the loan, to use it, and not looking to pay it back. Tey are just looking to pay the bills and the only solution they have is to get a student loan. You just have to enroll in some online course, and you can use the money the way you want. And to automobiles.”

“Meantime, nobody thinks the Feds going to do any QE,
and the Fed’s going to do it.
Once QE 4 comes in , it will be a shocker, a game changer, and I think
QE4 will have the biggest effect for the dollar on the downside and gold to the upside.”

“The unemployment rate is going to head back up, and then QE is going to be ramped back up.

We still need to see gold close above $1250 to really say that they bottom is in with a lot of conviction. I do believe we will continue to see continuing to see weak economic data coming out of the US and therefore increasing questioning of the “tapers over , rate hikes are coming” scenario.

Article authored by Carol Serpa. You can find the original story right here.