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.