Where The July Jobs Were: "Obamacare Again Offset Weak Industrial, Consumer Sector" | Zero Hedge

Where The July Jobs Were: "Obamacare Again Offset Weak Industrial, Consumer Sector" | Zero Hedge: "While last month's outlier spike in Information-related jobs, which saw 42K tech sector created in June, has come and gone, the breakdown of the July job additions confirms that some recently well-known trends continue, namely that the bulk of new jobs added remain in low-paying industries. Not only that, but some frank question marks emerge, like for example how did the government add 27K education jobs in July (out of a toal 38K) at a time when schools don't hire. The answer: seasonal adjustments and model quirks."

While last month's outlier spike in Information-related jobs, which saw 42K tech sector created in June, has come and gone, the breakdown of the July job additions confirms that some recently well-known trends continue, namely that the bulk of new jobs added remain in low-paying industries. Not only that, but some frank question marks emerge, like for example how did the government add 27K education jobs in July (out of a toal 38K) at a time when schools don't hire. The answer: seasonal adjustments and model quirks.

So where were the July jobs? As our friends at Southbay Research point out, "Obamacare jobs offset weak Industrial and Consumer payrolls"

The breakdown:

• Consumer demand is wobbly
  • Construction: Weak
  • Retail: Weak
• Industrial Sector and related ecosystem remains weak but has bottomed
  • Mining (-7K)
  • Manufacturing (+9K)
  • Truck & Rail (+1k)
  • Temp (+17K)
• Obamacare to the rescue: Healthcare +49K
  • Leisure & Hospitality (+45K) surges on extra convention-related hiring
• Construction: Despite claims of a strong housing market, Construction payrolls are the weakest since 2012, consistent with SouthBay data which shows a sudden sharp decline in hiring at homebuilders. Reflecting the slowdown, Building Material Retail jobs were also weak (-1K).
• Retail (+15K): Peak Auto sales is evident in Auto payrolls (+1K)
• Temp (+17K)
• Election Year Payrolls: Advertising (+3K)

And the full breakdown:

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