“We Have Become a Nation of Hamburger Flippers”: Dan Alpert Breaks Down the Jobs Report

The Daily Ticker ^ | August 2,2013 | Aaron Task

[Hojczyk]

At 162,000, the July jobs report fell short of expectations and well shy of “whisper” numbers for payroll figures above 200,000. In addition, job tallies were revised down for May and June and average hourly earnings fell 0.1% in July, the first decline since October.

The data disappointed Wall Street economists but are consistent with the trends Dan Alpert, managing partner at Westwood Capital, cited in a recent report: “The fact is that the U.S. employment situation is more of a wounded beast than a bull,” he writes.

According to Alpert’s analysis, 69% of the jobs created in the second quarter – and 57% in the first half of 2013 – were in the three lowest-paying sectors of the economy: retail trade, administrative and waste services, and leisure and hospitality. These jobs, which account for 33% of all private sector jobs, pay an average of $15.80 per hour.

“What you’re seeing is now the spreading of low wage growth,” he says, noting those trends continued in Friday's July jobs report. “Really we have become a nation of hamburger flippers, Wal-Mart sales associates, barmaids, checkout people and other people working at very low wages.”

The growth of low-wage jobs helps explain why the majority of Americans continue to believe the economy is in recession, despite a falling unemployment rate – now down to a four-year low of 7.4% – a record-setting stock market rally and a rebound in the housing market.

Taking it a step further, Alpert says the low-wage trend also explains why GDP growth remains so weak despite monthly average private sector job growth of nearly 200,000 in the past year.

[SamAdams76]

Actually the coffee price-point between Starbucks, Dunkin Donuts and McDonalds is very similar. You must be referring to the "specialty" drinks at Starbucks like the caramel macchiottos and the lattes and those funny looking all-swirled up things with the whipped cream on top that the ladies like to buy (if you can say the name of the drink in under three syllables, it's okay for a man to drink it too).

Basically you can get a regular Starbucks coffee for about the same price as a Dunkin Donuts or a McDonalds. But not many people at the Starbucks go in there for just the coffee.

Now Starbucks also has this selection of very rich-looking pastries at their counter but I never see anybody buying them. Can anybody close to the scene confirm whether or not the Starbucks pastries sell well?

At the Dunkin Donuts, those pastries get bought by the dozen and go wicked fast. Forget about getting a Boston Creme donut around here after 9am.

I like the fact that we have all these choices available to us. I like knowing that if the urge ever strikes me to have a slice of carrot cake for $6.50, I will be able to satisfy that urge at a Starbucks near me. More often then not, the urge is for a $9 glass of cask-ale from the yuppie pub down the road from me, you know the one, the one with all the British flags around it. I also get the fish and chips there which is a relative bargain at $7.95.

Also, what charities do you recommend? I find that most of them have 90% of more of their donations go to "operating costs" which translate to perks and benefits for their "volunteers."

If you truly want to be charitable, buy that $4.50 drink and hand it to a homeless bum as a treat.

[elcid1970]

The bum will probably throw that drink away. He wants cash, booze, & drugs.