Non-health jobs even weaker

Posted by: Michael Mandel on August 03

I’m going to persist in pointing out the obvious…that the non-health portion of the labor market continues to weaken. In July, health and social assistance accounted for 37% of all new jobs.

More striking, the six-month growth in non-health jobs has fallen to its lowest level since 2003. Over the past six months, private-sector jobs—outside of health care and social assistance—has risen by only 456K. That’s about half what it was a year ago.

Take a look at this chart.

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As I have noted before, the labor market is being kept afloat by health care—driven by exogenous expenditures which are not tied to the current state of the economy.

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Reader Comments

Brandon W

August 3, 2007 12:41 PM

Maybe this is why the health care system hasn't been fixed yet? The politicians know it's the only solid source of new jobs in the economy. Fix the health care system and make it more efficient, and the job machine will go away.

Kartik

August 3, 2007 01:47 PM

So 'reforming' healthcare could reduce jobs there, and thus ruin the overall job market?

Kevin

August 3, 2007 11:21 PM

Healthcare is driven by "Exogenous expenditures"? Not tied to the current state of the economy?

Michael, I made 4 trips to the dentist in the last few weeks replacing a broken tooth and a few other things. What was exogenous about that? I experienced real consumer demand for a certain type of health service. Consumer demand has nothing to do with the current economy?

I thought the whole entire purpose of an "economy" is to organize resources so as to satisfy consumer demands. Can you identify which Americans seeking healthcare are not experiencing real demand, and are instead manipulated by exogenous forces?

erkemao

August 6, 2007 06:18 PM

profits vs workers. Why companies has to waste their money in health and security? how can they maximize their profits if workers are only a production factor. When the factor crashes, then they replace it. Goverments thinks this way too, at least, they are another department of corporations. Every year born millions of new "factors". No problem for future: someone always takes the employ you refuse.

http://erkemao.blogspot.com

Shazia

January 21, 2009 09:19 AM

Entry of Non-health jobs even weaker is very reasonable and useful.


Regard
http://www.servocahealth.com

Thank you for your interest. This blog is no longer active.

 

About

Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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