The U.S. economy created only 38,000 jobs in May, the lowest total in almost six years. The private sector hired only 25,000, and government entities added 11,000.
Adding insult to injury, Dent Research found that within the private sector, the U.S. economy shed 10,000 jobs above the median pay level, and added 34,000 below the dividing line. 38,000 private jobs, or more than 150% of the total new hires, were in the lowest income bucket.
The numbers are skewed by the Verizon strike, which cut 37,000 jobs from the total, all of which were above the median. But even adding those back, it would have brought the total for the private sector up to a modest 62,000 for the month, and meant 27,000 jobs created above the median, instead of a loss of 10,000.
Dent Research President and Index creator Rodney Johnson noted: “The ugly numbers are too much to ignore, even when the Verizon strike is factored in. Clearly the U.S. economy took a step back in May.”
Each month Dent Research produces a detailed chart depicting where the job additions fall along the wage scale:
The Dent Research Employment Index digs beneath the BLS’ headline numbers to measure the quality of jobs added each month. It provides a more complete picture of the job market by tracking where jobs are being created along the wage scale. For a more detailed explanation of our methodology, please click here to view our employment white paper.
About Dent Research
Dent Research is an economic forecasting and investment research firm and publisher that works diligently to provide you with the proprietary economic knowledge you need to accurately forecast what lies ahead in our economy so you can take the necessary and appropriate action to ensure prosperity in your business, investment and financial affairs.
The core of our work is what we call the Dent Method, which our founder and economic expert, Harry S. Dent Jr., developed in the late 1980s. It has the only documented record of success at forecasting long-term economic trends based on the study of and changes in demographic trends and their impact on our economy and the markets. It works by showing how predictable consumer-spending patterns, when combined with demographic trends, allow us to forecast the economy years or even decades in advance.
For more than two decades, readers and experts have trusted our independent economic think tank and research team to provide specialized and proprietary economic and investment research, analysis tools, and forecast information.
With Dent Research, investors and businessmen alike can learn how to recognize and potentially profit from economic and demographic cycles. They can also use our research to pinpoint the best growth industries, the best places to live, the hottest investment sectors, and the key technologies that will change everyday lives.