The September jobs reports shows there has been no recovery in the labor market and the U.S. could be on the verge of economic collapse. At least, that’s the opinion of renowned market commentator Peter Schiff.
Schiff has long been skeptical of America’s economic recovery. In his view, the U.S. has been going through a transformation of the economy from a lot of full-time jobs to part-time jobs. Government statistics, Schiff argues, hides the real story of people settling for part-time positions and the loss of middle-class, high-paying jobs.
The September job numbers only drove that point home further. In a video posted on YouTube on Friday, Schiff pointed out a number of glaring problems. This report, he believes, will soon force the mainstream media to accept that there has been no recovery in the labor market under the Obama administration. (Source: Sept. Jobs Report Confirms Weakening Labor Market, Peter Schiff, October 2, 2015.)
“I think the biggest number was that everybody believed that the August number that we got last month—which was originally reported at 173,000—everybody expected that to be revised up. I think the consensus was 215,000 with a lot of people thinking it was going to be higher. But not only was that number not revised up, it was revised down to a poultry 136,000 jobs. That’s it! In fact, not only did they revise down last month, they revised down the month before that. […]
Let’s get to the September number. That number was supposed to be 203,000. It was 142,000. Again, way below expectations. In fact, if you average now the last three months, you just get 167,000 jobs. Six of the last eight job numbers have now been revised downward. So what does that mean of the 143,000 jobs that was reported today in September? It’s probably going to be revised downward, too. So the numbers are probably even worse than that.”
To drive his point home, Schiff highlighted the steep drop in the number of Americans in the labor market. Last month the country’s labor force participation rate dropped another two-tenths to 62.4%, the lowest since 1977. Another 579,000 people left the labor force in September and there are now 94.6 million Americans not working.
Americans who manage to find work are struggling with stagnant wages. In September, analysts had expected average hourly earnings to grow by 0.2%, but there were no gains in incomes. The average work, in fact, actually ticked down, from 34.6 hours in August to 34.5 hours in September.
“If you look into the detail of this lack of jobs report, again you see that all of the jobs we’re creating are low paying jobs and the jobs we’re losing are higher paying jobs. For example, we lost jobs in wholesale trade, manufacturing, mining, and logging. Those are good paying, blue-collar jobs. You know where we gained jobs? Leisure and hospitality. […]
A lot of these jobs are part-time. A lot of these jobs are temporary. This has been the story. This is why there’s no real recovery. This is why Americans cannot afford to buy houses. This is why they have no savings. This is why young people are living with their parents. This is why older people can’t afford to retire or they’re living with their grown children. Because these jobs are no good.”
To hear Peter Schiff’s entire commentary, check out the full video here.