^[1]
Source: Bloomberg Briefing

This morning, I mentioned how little I care about ^[2] the discrete monthly NFP data each month, saying the “overall trend” was what mattered. Specifically, I suggested looking at internals of the report for trends in wages, temp help, hours worked, etc. to determine the overall health of the labor market.

This report showed a continuation of a trend I find to be unhealthy: The outside contribution of low wage sectors to the NFP report.

Leisure and hospitality, health care and social assistance, retail and temporary jobs — all low wage sectors — have been responsible for over half (51%) of the private sector job growth the last year.

Weak wage growth is function of slack in the labor force and a lack of negotiating power amongst job holders and seekers.