President Biden looked at the September jobs report and called it a big success. Even though the number of jobs added in September was much lower than expected, he pointed to a decline in the unemployment rate and a boost in wages as evidence that the economic situation is improving.

He couldn’t be more wrong. The number of new jobs were low, unemployment decreased, but average wages increased. The only explanation that fits the facts is this:

Low wage jobs are disappearing. When people are out of work for six months or more, they are considered to be out of the work force. Once out of the work force, they are no longer part of the unemployment figures. Unemployment goes down.

Once the low wage earners are out of the market, the higher wage earners are the ones left. This raises the average income of the employed.

This is bad, bad news. At least I am out of the stock market.

Categories: Economy


it's just Boris · October 9, 2021 at 7:27 am

This is like a company firing the 20% of its employees that aren’t vaccinated, then loudly and proudly proclaiming that its employees are 100% vaccinated. [1]

And, yes, it’s quite worrying, on a number of fronts. Those low-wage jobs are the ones that provide a safety net of sorts, as even an unskilled (or highly skilled, but trained to do something else) can do them. In the longer view they also provide an early life experience that can teach something about work ethics, taxation, etc.

[1] On my mind because my former employer is going to start firing (or furloughing, laying off, or forced leave of absence – call it what you will) people who aren’t vaccinated starting this Friday. The way they are proceeding, both in term of the process itself and the shabby way they addressed people’s questions and concerns, makes me heartsick.

Let's Go Brandon · October 9, 2021 at 8:37 am

It is good news to a Long Marcher as it means more government dependents.
Many are lounging/slacking against the machine and eventually the 47% will take it by force during a Red Guards woke struggle session.
Jo Jo Magoo! What a worldwide laughingstock is Chiquitastan.
America first was too much for some comrades of the glorious peoples unity collective so zero America it is.
Forward to Zimbabwe, yes we can!

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