Survey: 40% of American Families Live Paycheck to Paycheck - Newsmax.com - Julie Crawshaw - August 3, 2012 - A new 60-page report from the Consumer Federation of America and the Certified Financial Planner Board of Standards reveals that two in five American households—almost 40 percent—live paycheck to paycheck, with no savings, retirement account or emergency fund, The Fiscal Times reports. The number of families living this way has increased by 7 percent over the last 15 years, in no small part because of the recession. Now, only 30 percent of Americans say they feel comfortable financially, and only one-third think they have enough saved to retire before age 65. In addition, the survey found that 51 percent of Americans feel behind on saving for retirement, a figure that has risen over the last decade and a half.
Only 24.6 Percent Of All Jobs In The United States Are Good Jobs - The American Dream Blog - Do you want to know why it seems like good jobs are very rare in the United States today? It is because good jobs are very rare in the United States today. According to a paper that was just released by the Center for Economic and Policy Research, only 24.6 percent of all American jobs qualified as "good jobs" in 2010. Over the past several decades, there has been increasing pressure on corporations to reduce expenses and increase corporate profits. One of the biggest expenses that any corporation faces is labor. Large corporations all over the globe are in an endless race to gain a competitive advantage by pushing labor costs as low as possible. Sometimes this is done by using technology. Computers, automation, robotics and other forms of technology have eliminated millions of jobs in the United States and those jobs are never coming back. Millions of other jobs have been eliminated by offshoring. In our globalized economy, American workers have been merged into one giant labor pool with everyone else. That makes it very tempting for big corporations to move jobs from areas where workers are very expensive (such as the United States) to areas of the world where it is legal to pay slave labor wages. When big corporations do this, corporate profits go up, but the number of good jobs in the United States goes down. As a result, there is increased competition for the jobs that remain in the United States and this drives down wages. Meanwhile, the cost of living just keeps going up. So millions of American families have fallen into poverty in recent years, and millions of others have gone deep into debt in an attempt to survive. This dynamic is absolutely shredding the middle class in the United States. So how exactly did the authors of the paper mentioned above come to the conclusion that only 24.6 percent of all jobs in the United States are good jobs? Well, they had three criteria for what a "good job" is.... (#1) The job must pay at least $18.50 an hour. According to the authors, that is the equivalent of the median hourly pay for American workers back in 1979 after you adjust for inflation. (#2) The job must provide access to employer-sponsored health insurance, and the employer must pay at least some portion of the cost of that insurance. (#3) The job must provide access to an employer-sponsored retirement plan.
Seasonal And Birth Death Adjustments Add 429,000 Statistical "Jobs" - Zero Hedge - Tyler Durden's August 3, 2012 - Happy by the headline establishment survey print of 133,245 which says that the US "added" 163,000 jobs in July from 133,082 last month? Consider this: the number was based on a non seasonally adjusted July number of 132,868. This was a 1.248 million drop from the June print. So how did the smoothing work out to make a real plunge into an "adjusted" rise? Simple: the BLS "added" 377K jobs for seasonal purposes. This was the largest seasonal addition in the past decade for a July NFP print in the past decade, possibly ever, as the first chart below shows. But wait, there's more: the Birth Death adjustment, which adds to the NSA Print to get to the final number, was +52k. How does this compare to July 2011? It is about 1000% higher: the last B/D adjustment was a tiny +5K! In other words, of the 163,000 jobs "added", 429,000 was based on purely statistical fudging. Doesn't matter - the flashing red headline is good enough for the algos.
CHART OF THE DAY: The Scariest Jobs Chart EVER - Business Insider - Joe Weisenthal August 3, 2012 - With the unemployment rate ticking higher, and the pace of job creation still at a pathetically low rate (by historical standards), we're compelled to revisit this chart. It's put together every monthly by Bill McBride at Calculated Risk, and it shows the trajectory of job losses in all of the various post-WWII recessions. This current recession (and recovery) is the bright red line. As you can see, the downtrend was far worse than anything else we'd seen since WWII, and the rise is far more meager than anything else we had seen.
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