There Is No Wage Growth: America Will Soon Have More Waiter/Bartenders Than Manufacturing Workers

Zero Hedge ^ | 11/7/2014 | Tyler Durden

[SeekAndFind]

While the headline jobs print was a modest kneejerk disappointment at least until it is appropriately spun in some sort of "goldilocks" frame, where the October jobs report was a true disappointment, was in the report of average hourly earnings: rising at just 0.1% for the month and 2.0% Y/Y, it missed expectations across both metrics. As a reminder, even Janet Yellen has observed that with the unemployment rate ridiculously low and thus meaningless to shape policy, the key thing the Fed head is watching is any changes in wages to determine where benign wage inflation is headed. Well, as the chart below shows, it is headed exactly nowhere, because 6 years after the recovery, wages simply refuse to rise.

 

And while there are many reason to explain this phenomenon, most of which have been covered here in the past, here is the easiest explanation of why wages have, and will continue to disappoint to the downside. From the report:

• Food services and drinking places added 42,000 jobs in October, compared  with an average gain of 26,000 jobs per month over the prior 12 months.
• Employment in professional and business services continued to trend up over  the month (+37,000).  Over the prior 12 months, job gains averaged 56,000 per  month. In October, employment continued to trend up in temporary help services  (+15,000).

In brief: well-paying jobs lower, low-paying jobs much higher.

And to visualize it: in October the US economy added the most waiters and bartenders in over a year. In fact at 42K, one in every five jobs "created" in the US economy went to a bartender, or a waiter.

 

Finally, putting it all in perspective, here is the total number of waters and bartenders Vs. manufacturing workers in the US since 1990. The red (bad) line has almost caught up with the blue (good) one. So much for Obama's manufacturing renaissance promise as manufacturing workers have barely recouped any of the losses since the Great Depression started in 2008, while America has never had more waters and bartenders.

[Cringing Negativism Network]

The answer is simple.

Bring back manufacturing, from China.

I’m series.

[9YearLurker]

I thought you were going to suggest we outsource our bartending to India.

[Buckeye McFrog]

And if they have no better jobs to go to, they will inevitably join unions and Leftist movements to push for a $15 minimum wage.

[Cringing Negativism Network]

Lol.

I am not going to suggest we outsource any American jobs.

I assure you.

[Extremely Extreme Extremist]

Hey broken record, it doesn’t work that way. There are a lot of underlying factors why jobs go overseas. Belching out “Buy American!” isn’t going to do a thing.

[Fernet Branca]

Some of us make very very good money behind a bar.

[eyeamok]

Wouldn’t a “Bartender” technically be in Manufacturing?? They are taking “raw” ingredients and creating a finished product aren’t they?? Isn’t that “Manufacturing”

[sportutegrl]

Here’s a plan: Approve the Keystone pipeline. I know that the liberals say that that oil will be pumped to refineries to be made into gas and then shipped to China, but that’s the point: 1. We MANUFACTURE gas from raw oil. 2. We EXPORT the gas to China. Manufacturing and Exporting. Two things Obama said in his speech that he wants to increase.

[MeshugeMikey]

The Barista Power Movement...

[A CA Guy]

No, with all the pushing of greater minimum wages all you will get is more unemployment at the bottom.

[Cringing Negativism Network]

Look America has been bleeding jobs now for over one complete generation.

We now run a (massive) trade deficit with China, every single month.

I will continue to advocate for the return of American manufacturing.

I fully recognize the GOP is every bit as sold out as the dems as far as actually employing Americans.

But we need to bring back American jobs.

America needs to bring back American jobs.

[Cringing Negativism Network]

I completely agree with you on this.

America needs the Keystone pipeline.

Immediately.

[Gen.Blather]

The other thing being a net fuels exporter gives us is clout. We can drive down Russian currency and dilute the power of OPEC. Having a big navy and airforce is nice, but we don’t and won’t use it to intimidate and get our way (at least under this president.) But being the most reliable fuel supplier not only makes us richer it also makes the customer’s be nice to you.

[WayneS]

There Is No Wage Growth: America Will Soon Have More Waiter/Bartenders Than Manufacturing Workers

Given the state of the economy, maybe that's a good thing.

;-)

[tuffydoodle]

Denton, Texas just approved a ban on fracking. I see that as a ban on jobs. Denton is a bit of a low income town, I just don’t understand why they would vote against fracking when it would bring in a ton of jobs.

[wrench]

This is the service based economy the left is striving to create.

No wealth is created by Americans selling hamburgers to each other.

On the flip side, there are lots of jobs out there. Some folks have 2 or 3.

[John S Mosby]

Visiting Central FL—this as Orlando Mayor Buddy Dyer declares Orlando a “number one center of job growth in the country” NOT. The “jobs” are barkeeps and floorsweepers for the many bars and hook joints in downtown, all owned by the tort bar lawyers like John Morgan, law partner with Charlie polesmoker Crist. What a lovely, fake place.

Orlando, the “service municipality” for the Whore of Babylon, Walt Disney World who, with their largely homosexual managagement and liberal support of obamaumao as media PR office/owner of ABC-TV, reports largest income quarter ever— after they raised day rates to over $100 per person to attend... what? The “destination” for the world. Walt Disney is spinning in his grave. But not Eisner.

And the hapless home and business owners of Orlando just got hit with a 17% increase in property taxes to support this “service corridor” run by corrupto liberal crats and no other local real industry except Lockheed.
They are trying to re-make LA with ALL of the same tactics and BS. A disgusting example of liberalism at work. Hand in hand with the RINOs.

Bring manufacturing back to the US. Real, productive jobs. Not hamburger flippers, and illegal alien floor sweepers. They created this nightmare, and are lying all the time.

[thackney]

In some locations, we are growing manufacturing.

Chevron Phillips Chemical eyes another expansion in Baytown
http://www.freerepublic.com/focus/f-news/3224407/posts

[discostu]

That’s because robots aren’t as good at waiting tables and mixing drinks as they are at running an assembly line. Those jobs aren’t coming back, we quite simply no longer need people to build things.