Perestroika, NOT Recovery

One of the defining features of jobs "recovery" and the main reason why wage growth has been so far below the Fed's expectations for years it has prevented wage inflation from appearing despite years of QE, is that the quality of jobs added month after month has disappointing. May was no difference.

Yes, the headline print of 280K job additions was great, but a quick look at how the BLS got there shows that nothing has changed because four of the five main job additions were, as usual for the lowest paid jobs.

Here is the breakdown:

• Education and Health (i.e., teachers): +74,000
• Leisure and Hospitality (i.e., waiters): +57,000
• Retail Trade (i.e., minimum wage store clerks): +31,400
• Temp Help: +20,100

In fact, these lowest quality jobs accounted for two-thirds of all jobs gains in May.

http://www.zerohedge.com/news/2015-06-05/where-may-jobs-were-teachers-waiters-retail-and-temp-help

Our economy is NOT "recovering", it is being restructured into a two-tiered system:

• The very rich
• Everyone else

That ain't a recovery.