With a lukewarm Jobs report out of the way (see Unemployment Edges Up to 5.0%, Establishment Survey Jobs +156,000) let’s take a closer look at where the economy is and isn’t gaining jobs.
Manufacturing lost 13,000 jobs in September. Employment decreased in 5 of the last 8 months.
Wholesale trade added 10,000 jobs in September. The sector is doing better than 2015 but worse than 2014.
Gas stations and clothing stores are producing lots of jobs. Hooray.
If retailers are stocking up for Christmas you would not know it from the above chart. The chart confirms the recent trucking reports on shipping volumes.
For details on the Cass Freight index as well as look at the plunge in heavy truck sales, please see Heavy Truck Sales vs. GDP: Sales Plunged 29% in August from Year Ago.
The stock market is up, and so are the jobs.
Professional and Business Services
Not quite sure why waste services and administration took a jump or for that matter why waste services is lumped with administration. Are we suddenly producing more garbage? Do we need more administrators?
Leisure and Hospitality
One big bright spot in employment has been food service and drinking places. However, this category is showing signs of slowing.
Have we reached the saturation point in restaurants and bars? How much of this category is really double counting of part-time jobs?
Mike “Mish” Shedlock