Lousy Jobs Grow -So What?
Even with strong jobs growth, wages slipped in February. After a 12-cent gain in February, average hourly earnings declined by 3 cents, and they’ve grown by just 2.2 percent over the last year.
In all, figures can be misleading and fail to tell the real story leading to the decline o f the middle class
Blockbuster Job Growth Still Isn’t Turning Into Big Raises For American Workers
The economy added 242,000 jobs in January while the unemployment rate stayed unchanged at 4.9 percent, according to the latest data from the Bureau of Labor Statistics. Analysts had expected 190,000 jobs to be added.
That maintains the lowest unemployment rate in 2008. The number of jobs added in December of last year was revised up by 9,000, while January was revised up by 21,000. With revisions included, the economy has been adding jobs at a 228,000 average monthly pace, matching the pace of growth in 2015. The labor force participation rate and employment-population ratio both edged up in February, signs that more people are joining the labor force and seeking jobs.
Job gains were concentrated in health care and social assistance (57,000), retail (55,000), food service and drinking places (40,000), private education services (28,000), and construction (19,000). Retail has added 339,000 jobs over the last year, while food and drinking places have added 359,000.
Even with strong jobs growth, wages slipped in February. After a 12-cent gain in February, average hourly earnings declined by 3 cents, and they’ve grown by just 2.2 percent over the last year.
Cheap money encourages risky behavior. It gives banks an incentive to give ‘no money down’ loans to homeless people with no employment history.
It creates bubbles (like the housing bubble from 10 years ago), and ultimately, financial panics (like the banking crisis from 8 years ago). Banks are supposed to be conservative, responsible managers of other people’s money.
This one statement provides the largest validation yet for POM readers that we are in fact on the correct course with this thesis. What isn’t clear in the statement is whether July is the deadline for the report to be presented, or when the broader use of the SDR should begin. Considering the time it takes to decide on changes and implement them, it would be my interpretation that it is only the report which is meant to be completed by July.
The details: shortly before midnight, a team of police arrived with two Turkish-made TOMA water cannon trucks. They advanced military style towards the waiting supporters, firing the freezing water directly at them. Using bolt-cutters to unlock the iron gate in front of the building, dozens of police then marched into the premises to seize the headquarters and formally place it under administration, pushing aside anyone who stood in their way, Cihan images showed.
Debtor Days Are Over as BIS Calls Time on World Credit Binge
T
he world’s credit boom is beginning to show dangerous signs of unraveling, ushering in a period of fresh turmoil for the over-indebted global economy, the Bank of International Settlements has warned.
The globe’s top financial watchdog called time on the world’s debt binge, noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year.
With financial markets thrown into fresh paroxysms in 2016, oscillating between extremes of “hope and fear”, the over-leveraged world was finally approaching a day of reckoning, said Claudio Borio, the bank's chief economist.
