Life

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

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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

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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:

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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.
 

Categories: Life, Money

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  • DJohn1

    Massive unemployment is a direct result of the policies of the U.S. Government over the last 20 or more years. It is deliberate and it is the result of both political parties cooperating to make it happen.
    Well, I guess I would attempt to hide the facts too if that were the case.
    Bars and Restaurants always do well in times of recession and depression for some reason.
    People have money to get food and get drunk in the worst of times. Makes me wonder about their sense of priorities.
    Eat, Drink, and be merry, for tomorrow with all its horrors will come soon enough.
    The government has been controlled by corporations for at least 30 years if not a lot longer than that.
    There are many corporations. Each competing against one another. The trick is to have game rules so there is a fair playing field for everyone. It isn’t happening and it may never happen.
    Both parties have betrayed the labor of this country big time. You only have to look at the public declarations of people like Ross Perot to see what has happened and continues to happen.
    Labor is defended by labor unions. Most of which are now gone. Just like the assembly line worker is now a thing of the past.
    Instead of pensions, they substitute 401K systems in its place that are very limited in their ability to ever take the place of a permanent pension.
    But labor did one thing right. It defended the foundation of the entire tax system of this country by negotiating contracts, wages, pensions, and even health insurance. It is almost gone now. So our young people are planned into financial slavery for the rest of their lives because WE, our generation, caused this because instead of voting we sat back on our hands and let these people do this to us.
    There was massive amounts of corruption in the labor movements. And that killed them as much as anything else did. They made major mistakes along the way. They treated lower management as not one of their own in most cases. Yet, lower management is just as in need of rules as everyone else. That is why companies get rid of people in middle age and leave them with nothing of what they have saved over a generation. It is dirty. But the courts and the government have supported companies over labor almost every time in the last 20-30 years.
    One of the worst was a Union President turned management named Ronald Reagan. Starting with breaking a strike by air controllers, the labor boards turned pro-management and literally destroyed unions in the 80s.
    There is a basic falsehood in cheap labor from overseas. I know because they are making the same mistakes that Great Britain made before us. Corporations do not control foreign governments. Foreign governments at any time can step in and steal the companies right out from beneath them. Russia is all ready doing this to American Companies to the tune of 100s of millions of dollars. It was on 60 minutes a while back. Putin himself was directly involved in this theft. The polite name for this theft is called Nationalization.
    I wish you could take it all back. It happened because our government forgot the number one rule of dealing with other countries. That rule is we have to take care of our own first, before we take care of anyone else.
    We, as a country, have voted laws in that are against our own people and they have done this for a very long time.
    It takes years for all that they have done to result in the conditions we are now in. Most of the people that did it are retired or dead.
    We spend a lot of money on programs. Foreign Aid can be calculated as a enormous amount of money leaving the country. The Space Program spends a lot of money. Some of those people taking our money hate our guts. Doesn’t make a whole lot of sense.
    Yet they stand up and give our old people a pittance if anything at all in Social Security every year. These same retired people are supporting about half our people as they still live at home, some of which are 35 years old or more.
    The current raise is going to give the average retired person about 6-7 dollars a week to take care of all the raises in prices over the last year. That is a complete and massive disgrace to the entire country.
    Social Security is based on a monthly payment regardless of how many weeks there are in a month. Those ignorant old folks won’t even know the difference right?
    The government has a set of priorities. Those priorities do not include pensions. They do not include taking care of veterans either. IF I sound a little bitter about those set of priorities I am. I would like to take the entire government and vote them right out of office and put people in there with just a little bit more common sense about how to make this country come back and prosper. It just isn’t going to happen the way things are set up right now.
    The people that are going to have to do it do not realise what is happening or if they do, they are making a run for it while the running is still available to them.
    What is it going to take? That is the big question and it is way above my pay grade. (I am one of those retired people out there.)
    I have seen some really good ideas out there. I have seen some really stupid ideas out there. What I haven’t seen is something that will work. Part of the problem is our economists are all in one school of economy.
    One day soon, we will all wake up and everything you have every earned, everything you have ever saved, plus everything you currently get in the way of benefits like pensions will just be gone. That day is not that far off.

  • thixotropic

    I would argue with you only that corporations don’t have control over governments — they *absolutely* do. Just one corporation threatens to take its business to another state, and that state (or nation) will bend over backwards with tax incentives to keep them. The jobs that are kept can end up costing taxpayers hundreds of thousands of dollars apiece.

    You say Putin used nationalisation — he may have. But that’s just a tool — the use of government as a cat’s paw to achieve oligarchy — rule by a few wealthy, not a few bureaucrats.

    Other than that, I don’t find much to disagree with in your post.

    Oh, something we all need to know: our savings are now part of the bank’s capital assets as of the recent G20 summit. What does that mean? It means our money is *theirs* — they can spend it, use it as collateral in a buyout, do any number of things. If they lose it? Or claim to? We’re the ones out of luck. So a bank is not the place for our money — but you probably knew that.