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Don't Get Too Excited By The Jobs Number

It is nice that jobs are increasing, but there are many things that still need to improve for the economy to actually improve for most people.

By Joel Ross | Updated on February 07, 2015

It remains very hard to know where we really are. On the one had the new jobs numbers look better, but the breakdown of part time vs well paying full time is unclear. In the new jobs numbers are a high percentage of part time and low paying in hospitality and other low end service jobs. Underneath the headline numbers is still the harsh reality that vs the population rise, the number of new jobs being created is still quite a distance form really making a difference to most middle class workers. U6 is still above 11% and the participation rate is still near historic lows. The average family is still around 8% below 2007 adjusted for inflation and 8.7% below 1999, the peak. In 1988 the typical middle class household was headed by a white male married to a white female with two kids. He was 40 and had a high school education. Today there is a wide mix of education, race, and a lot less married households. The good news is many households today do not have two kids and the female works in the majority of cases. So there are less mouths to feed and a second income. However, the combined household income is still behind 2007. In short, the middle class has gone nowhere since 1999, and they have little savings or retirement funds. Many have school debt their parents never had and they are just coming off the crash which decimated their incomes and asset values. If they own a house it may or may not be back to 2006 values depending on where they live. Food prices are up a lot and now digital devices consume a sizable cost per month.

 

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