Tuesday, February 7, 2012
The disturbing trend underneath the strong jobs report
Total employment taxes (witholding) collected by the Federal Government so far this year, are running about $8 billion above last year. On the surface this would appear to be a good sign and an indication of a stronger economy and job market, however, notice the trend, it's going down. This comes despite a stellar jobs number last Friday. It suggests that income earned on all these new jobs is not rising, but in fact falling. This seems to be corroborated by average hourly earnings, which on a year-over-year basis, hit the lowest level in 10 months in January.