The Bureau of Labor Statistics (BLS) reported today that the economy added 151,000 nonfarm payrolls, disappointing market expectations. The private sector hired 158,000 workers. That means government employment contracted by 7,000.
Further analysis by Dent Research finds that over 60% of the jobs added to the economy in January fell below the measured median-wage range, with the majority of new positions falling into the lowest-paying industries. Retail industries gained and restaurants alone accounted for nearly a third of all of the jobs added in January.
There were some winners in well-paying industries, such as professional and technical services, and health care (particularly hospitals and ambulance services). But other higher-paying industries suffered. Educational services jobs tanked, shedding nearly 40,000 workers.
Commenting on the January report, Dent Research President and Index creator Rodney Johnson said: “What a change from just a couple of months ago! The good news on jobs is gone.”
Each month Dent Research produces a detailed chart depicting where the job additions fall along the wage scale. You can see the full results below, showing that the latest balance of jobs was created below the median wage:
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.