This is the type of report we’ve been waiting for. According to the Bureau of Labor Statistics, the U.S. economy added 211,000 jobs in November – 197,000 of which the private sector created. The unemployment rate stayed at 5%.
More importantly, Dent Research analyzes the quality of the jobs added. Upon closer inspection of the job additions for last month, we give November high marks.
In a strong development, we find that a majority (54%) of the net 197,000 jobs added in the private sector were created above the measured median wage line. Specialty trade contractors did well in November, as did those in professional services.
We also note that the long running U-shaped recovery in jobs – where most of the hires come from the lowest and highest-paying jobs, hollowing out middle-class workers – evaporated in November. In fact, 42% of the jobs added went to the middle third of jobs on the wage scale.
Whether the November report is the beginning of a trend in the labor market or just a random blip, we can’t say.
Commenting on the November report, Dent Research President and Index creator Rodney Johnson said: “The jobs created last month were clearly strong, better than we’ve seen in years. We can certainly use the good news.”
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.