Economists were disappointed on Friday. The Labor Department’s monthly job report showed that only 162,000 new jobs were added in July, short of what analysts had expected. The fact that the unemployment rate dropped to 7.4 percent didn’t cause any celebrations either because the decline was due in large part to discouraged workers dropping out of the labor force and no longer looking for work.
Once again, as has been the trend for much of the year, it was low-income jobs that made up the majority of the jobs created. While only 4,000 goods-producing jobs were added to the economy in July, 38,400 waitress and bartender jobs were added. As Zero Hedge reports, there have been 10 times more waiter and bartender jobs added to the economy this year than manufacturing jobs.