Many of the jobs created recently are part-time and in low-wage industries, such as in retail and restaurants.
U.S. employers added a disappointing 162,000 jobs in July, but some economists are even more concerned about the types of jobs the economy is generating.
Job growth in recent months has skewed toward part-time work in low-wage industries, and that trend continued in July, Bureau of Labor Statistics figures show.
Retailers led job gains with 47,000, and restaurants and bars added 38,000. All told, four low-paying sectors — retail, restaurants, temporary staffing firms and home health care — accounted for 60% of the jobs added in July, though they make up just 22% of total employment, according to an analysis by Wells Fargo. So far this year, the four sectors have accounted for 45% of the nation's 1.3 million payroll additions.
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"A large portion of the jobs we're adding tend to be in low-skill occupations," says Wells Fargo senior economist Mark Vitner.
The trend appears to have improved the job prospects of less educated Americans. Employment for high school graduates increased by nearly 400,000 in July, while payrolls for those with at least a four-year college degree fell by 256,000.
Many of the new jobs, however, are part-time, especially in stores and restaurants. The number of Americans who usually work part-time jumped 174,000 last month, but totals for those who usually work full-time rose by just 92,000. Since March, the ranks of part-timers have swelled by 791,000 vs. 187,000 for full-timers.
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