The May Jobs Report issued on June 1, 2012. This is why the Republicans do not do
well with the economy and only use rhetoric.
Health Care Employment - For the most part the INCREASE in health care jobs were
in small business. If I may?
Health care employment continued to increase in May (+33,000). Within the
industryemployment in ambulatory health care services which includes offices
of physicians and outpatient care centers, rose by 23,000 over the month.
Over the year, health care employment has risen by 340,000.
Doctor's office and ambulatory care centers are primarily small businesses. While
ambulatory care centers can be connected with hospitals, there are those privately
owned and physician offices are private small corporations with an occasional
individual. So much for the Romney "Land of Mitt Believe" that The Affordable Care
Act was enacted blindly without realizing it was going to adversely effect the
economy. NOT SO!!!!!!!!!!!
Transportation and Warehousing
These are not necessarily small businesses. They can be, but, the majority of the
transportation industry and warehousing is usually Wall Street. It requires major
investment in equipment, real estate and labor.
Transportation and warehousing added 36,000 jobs over the month. Employment
gains in transit and ground passenger transportation (+20,000) and in couriers and
messengers (+5,000) followed job losses in those industries in April. Employment
in both industries has shown little net change over the year. In May, truck
transportation added 7,000 jobs. Employment in wholesale trade rose by 16,000 over
the month. Since reaching an employment low in May 2010, this industry has added
184,000 jobs.
The transportation and warehousing industry is primarily "Big Box" stores and now one
is discussing China. We know Wall Street is draconian in their treatment of labor. So,
the labor force in April lost jobs more than likely because of the end of an very
extended "Black Friday" and Christmas Sales. If one recalls there were all kinds of
sales to attract buyers to the stores, but, that sort of dried up around Marchish. So
the warehouses were no longer moving inventory to the stores and the transportation
was not necessary. The labor working during the 'sales months' were probably part
time and temporary. Wall Street for the most part only hires when it is necessary.
Wall Street is not making permanent expenses anymore in the way of labor. So while
there was a net growth in this industry, it is because there was a net sustained
growth over the year, otherwise, that would not exist either. This is private industry,
not government. The only sustainable transportation industry in government is military
and that does not count here.
Manufacturing
Here again the industry is primarily Wall Street due to the high cost of 'capital'
investments. Investments in real estate, machinery, inventory, etc. Okay? There are
small businesses doing manufacturing, they are not as numerous in the USA as I would
like to see them, but, those investments are through the Small Business Administration
because banks won't indulge those loans anymore. The banks are too busy investing in
risk than solid and sustainable economies. Now, the best example in this category is
of course the car manufacturers. They have been increasing their production. They
are carrying some cash flow now, which is good, and they are optimistic about the
economy and their sales. Therefore.
Manufacturing employment continued to trend up in May (+12,000) following
a similar change in April (+9,000). Job gains averaged 41,000 per month in the
first quarter of this year. In May, employment rose in fabricated metal products
(+6,000) and in primary metals (+4,000). Since its most recent low in January 2010,
manufacturing employment has increased by 495,000.
Nice. Different than transportation and warehousing. The only warehousing in the
auto industry are on dealership lots and that inventory is moving. Consumers are
enjoying new cars with better fuel mileage and alterative fuels as well. Trucks are
still selling, but, Ford as what they call "Eco Boost" and people seem to like it. For
the most part this PRIVATE industry is doing just fine. The transportation and
warehousing industry is 'intermittent' by CHOICE. They are exercising their idea of
'the bottom line' and they are not in distress. They are showing record profits. There
is absolutely nothing wrong in that industry UNLESS one talks to the employees who
see work 'intermittently' and are put on and taken off the unemployment roles for
profit margins.
Construction
This is primarily private small businesses. They have been in distress since the
global economic collapse and that isn't going to change soon. These are the
contractors, sub-contractors, electricians, plumbers, etc., etc. I believe it was this
past Sunday I used an illustration of the Miami, Miami Beach, etc. housing market
and it showed a slow down. The slow down there is twice the national average, but,
the real estate industry has analyzed its future and we are looking at years if not a
complete decade before housing prices return to where they were before the collapse.
Additionally, there is still a glut of homes and business buildings since the Bush years
so, there is no surprise this industry is hurting now that the USA Congress, including
Eric Cantor has stopped The American Jobs Act. The American Jobs Act targeted this
industry, small business, that would renovate public buildings, especially schools, to
provide this industry relief at least for the next few year because it will take that
long to rebound. Okay? So, when Eric Cantor rants on about private small businesses
hurting, HE CAN THANK HIMSELF, NOT THE PRESIDENT!
Construction employment declined by 28,000 in May, with job losses occurring in
specialty trade contractors (-18,000) and in heavy and civil engineering construction
(-11,000). Since reaching a low in January 2011, employment in construction has
shown little change on net.
Employment in Professional and Business Services
These are small businesses, for the most part. Even large accounting firms are similar
to dynamics of large law offices, they are still small businesses. Depending on the
size of the business there will be independent contractors used to get a volume of
work done. We know business does not like paying their own labor and will seek
to reduce their labor force, even though this is a dense use of PROFESSIONAL and
expert staff, they'll get rid of them anyway. What is most likely occurring in
"small gains elsewhere in the industry," is the growth of private small businesses that
perform contract work. They are probably receiving greater demand and are hiring
staff to maintain high quality work while taking on more contract business. This is a
PARADIGM SHIFT. Successful businesses are completing their business dealings
differently and incorporating the use of external talent to achieve the same goal.
This is a very healthy industry and while jobs are being shed, they aren't necessarily
being lost.
Employment in professional and business services was essentially unchanged in May. Since the most recent low point in September 2009, employment in this industry has grown by 1.4 million. In May, job losses in accounting and bookkeeping services (-14,000) and in services to buildings and dwellings (-14,000) were offset by small gains elsewhere in the industry.
Other Major Industries
These are not small businesses. Here again there will be the occasional small business
but for the most part these are larger industries due to the high cost of capital
investments. Natural resources, Big Box Stores, Google, HP, IBM, Morgan Chase, Citi,
Goldman are not at all small businesses. The Big Box Stores actual sales are part of
this industry. Their transportation and warehousing is considered differently. Included
here is the tourism industry which can be seasonal and then government.
Employment in other major industries, including mining and logging, retail trade, information, financial activities, leisure and hospitality, and government, changed
little in May.
This is where Cantor made his big mistake. This is the part of the economy that
is private but doing JUST FINE. They are not adding jobs to enjoy their larger profit
margins and CEO bonuses. This is where the money is sequestered and no matter how
much their taxes are cut they ain't going to grow jobs because their 'yin and yang'
are content. They are taking risk to some extent as we have seen recently with Morgan
but, for the most part the industries are not adding jobs due to their own standards. The
CEOs in this industry would be adding labor if they thought for one minute their bonuses
would grow.
The government jobs have not changed because there are cutbacks, as in Wisconsin, and
there are budget short falls and the President is AGAIN correct. The private sector is fine.
The American Jobs Act would have boosted the employment in government AND their
small business contractors, increased economic stability in their states, improved local
economies, tax bases and property values. BUT. Eric Cantor and the rest of the GOP
rather "Make Obama a one term President" than actually do what is best for the country.
Posted on: 1:54 pm, June 8, 2012, by Scott Wise, updated on: 02:14pm, June 8, 2012
WASHINGTON, DC (WTVR) – Rep. Eric Cantor (R – Virginia) (click here for video) fired back at President Obama Friday after the President said the country’s private sector was “doing fine.”“My question would be to the president: Are you kidding? Did he see the job numbers that came out last week? The private sector is not doing fine,” Rep. Cantor said....The 2010 elections were based in creating jobs. NOW, we know whom the culpritsreally are, the House and Senate GOP!
