The DoL release Employment Data for August and it is worth an analysis. We show here several elements.
First, the total employment stats are shown below:
Note the overall continuing decline in all sectors including Government with one exception, Health Care. Construction is still declining at almost a 13% annual rate and manufacturing at 7%. Both of these are indicators of structure deterioration in the economy. Even Telecom is dropping at 4% rate. Yet Health Care is at +2-4% rate of increase in employment.
Second, let us look at Government as shown below.
The Federal Government is the only positive growth as we would expect given the current Administration. All State and Local elements are showing declines.
Third we look at Health Care below:
This is a concern. Outpatient Care, Child Care and Social Assurance Services are growing at or above double digits. This may be a clear sign of the out of control costs in Health Care.Even nursing care facilities are growing at 4% rates, well in excess of the population growth. This is one area which needs almost mandatory controls. It is not that disease incidence is increasing it is clearly a sign of the gross inefficiency in this sector. Every other sector has seen massive declines except health care.
Finally a brief view of M2 below shows a drop in M2 for the last few weeks.
This decline in M2 bodes well for inflation control but we are reminded of the fact that banks still have massive reserves which we spoke about before.
First, the total employment stats are shown below:
Note the overall continuing decline in all sectors including Government with one exception, Health Care. Construction is still declining at almost a 13% annual rate and manufacturing at 7%. Both of these are indicators of structure deterioration in the economy. Even Telecom is dropping at 4% rate. Yet Health Care is at +2-4% rate of increase in employment.
Second, let us look at Government as shown below.
The Federal Government is the only positive growth as we would expect given the current Administration. All State and Local elements are showing declines.
Third we look at Health Care below:
This is a concern. Outpatient Care, Child Care and Social Assurance Services are growing at or above double digits. This may be a clear sign of the out of control costs in Health Care.Even nursing care facilities are growing at 4% rates, well in excess of the population growth. This is one area which needs almost mandatory controls. It is not that disease incidence is increasing it is clearly a sign of the gross inefficiency in this sector. Every other sector has seen massive declines except health care.
Finally a brief view of M2 below shows a drop in M2 for the last few weeks.
This decline in M2 bodes well for inflation control but we are reminded of the fact that banks still have massive reserves which we spoke about before.
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