Markets cheered the 287,000 Non-farm Payrolls numbers on Friday. Yet within those numbers, 347,000 more people became unemployed. Mathematically one would think that the aggregate number of paychecks rising should equate to falling numbers of unemployed not rising figures.
Well if the these new payrolls are going to people holding down several jobs to get by then it kind of makes sense. America’s Research Group (ARG), which has been tracking consumer shopping trends since 1979, says that 26 million Americans are juggling multiple jobs and only earnings $27,000 average. These people are supporting 2-4 kids and 68% are women aged 28-38 working in retail or call centres.
ARG said, “Nearly half of all Americans have not seen an increase in salary over the last five to seven years, and another 28 percent have seen their take-home pay reduced by higher medical insurance deductions or switching to part-time jobs.”
As we noted in another piece, 47% of Americans can’t gather $400 cash in an emergency without selling something or borrowing it. That was a Fed survey and it highlights the status of living paycheck to paycheck. It is so bad no these people can only shop for necessities.