Reclaiming Common Sense

Every month the government releases its "Employment Situation" report. This is also called the Jobs Report. The July Jobs Report reported that over 230,000 "jobs" were added to the economy. It was actually closer to 155,000. The number behind the "jobs" number is the total number of private sector workers added to the economy or the Current Employment Statistics (CES) data. The number of jobs added, part-time and full-time, is measured by the Current Population Survey (CPS) Data. This column has reported on how this has been a part-time recovery. It took until June of this year to recover all of the full-time jobs lost during the recession.


Even so, this has not been a complete recovery. New Home Construction has not returned to pre-recession levels. New home sales have not returned to pre-recession levels. Existing home sales have not returned to pre-recession levels. Some sectors of the retail market have not returned to pre-recession levels. It also is evident that some sectors have not seen employment return to pre-recession levels.


Five Sectors have more jobs as of July 2016, than they had prior to the recession. There are two million more people working in the Hospitality industry than there were prior to the recession. There are two million more jobs in the Professional and Business Sector, two. There are 4 million more jobs in the Health and Education Sector.


Six Sectors have recorded net Job Losses since the Recession.We have seen manufacturing jobs drop considerably since July 2001 and have seen that trend continue through July 2016. We have 1.1 million less Manufacturing jobs than we had during July 2008. The financial sector was hot hard by the recession. Even though the Financial Activities sector has more jobs than it had during July 2008 there are fewer jobs in that sector than July 2007.


It should come as no surprise that Construction and Mining jobs are down since the Recession. There are 1.1 million fewer jobs in construction than during the heyday of the building boom, July 2006. To be fair, there are 1.2 million more construction jobs than at the bottom of the recession.Mining jobs are doen by nearly 100,000 jobs. This does not sound bad until you realize that that industry has shrunk by 12%.


It may come as a surprise that we have fewer Government Workers now than we had before the Recession. It may not seem that a drop of 400,000 jobs is very consequential while there are over 20 million government jobs. This is the largest job sector that has seen declines in employment.


This has been an incomplete recovery. The retail sales numbers, the new and existing home sales numbers, and now the jobs numbers show just how incomplete the recovery has been.