The media trumpeted today’s jobs reports with headlines like “December Employment Gain Caps Best Year for U.S. Since 1999.” The addition of 252,000 jobs followed a 353,000 rise the prior month that was more than previously estimated, a Labor Department report showed today in Washington. The jobless rate dropped to the lowest level since June 2008.
But the jobs report can be summarized by the last two lines of Ernest Thayer’s poem Casey at the Bat: A Ballad of the Republic Sung in the Year 1888:
And somewhere men are laughing, and somewhere children shout;
But there is no joy in Mudville — mighty Casey has struck out.
Why is there no joy in Mudville … or the USA? Despite the alleged stimulus of lower gasoline prices, average hourly wage growth slumped to 1.7%.
And labor force participation continued its mournful march to 62.7%.
And the U6 underemployment rate remains above 11%. Coupled with stalled wage growth, this is not great news for the housing market.
Yes, Mighty Casey has struck out … at least in terms of wage growth.
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