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Friday, January 09, 2015

December Employment Report: Economy Still in Recession

Everybody treats the monthly labor confessional as news, but in truth, the government's report runs 4-6 months behind the actual economy. Last month's report shows that wages for employees were actually falling in the following industries:
  • Mining and logging
  • Construction
  • Manufacturing
  • Wholesale trade
  • Retail trade
  • Utilities
  • Information
  • Financial activities
  • Professional and business services
  • Education and health services

With income falling in the majority of categories, the rise in GDP simply means that more and more of the wealth being created is going to the managerial class, squeezing the middle and lower classes. That's a recessionary environment because the majority of workers are not participating in the so-called “economic advance.”

Today's employment report is confirmation that the US economy is still effectively in recession for most of the country.