More higher-quality jobs were added to the U.S. economy than lower-paying jobs for the first time since January, according the latest proprietary analysis by Dent Research.
Since the beginning of the year, the vast majority of new entrants to the labor market have been burger flippers and low-wage retail workers.
While the latest jobs report from the Bureau of Labor Statistics (BLS) on Friday revealed that the unemployment rate had actually ticked up to 6.2% from 6.1% during July, the Dent Research Employment Index confirms that more new jobs came in above the median-wage line. See chart below:
As illustrated in the graphic above, July’s job additions occurred mainly at the edges of the income scale.
The BLS report also confirmed the cautious upbeat news from the U.S. employment market, as the economy chalked up its sixth consecutive month of more than 200,000 jobs added.
Using propriety analysis of the BLS numbers, Dent Research examines all the private sector jobs added during a given month across 84 different employment categories by wage. These are then grouped into 12 larger buckets. By measuring those additions against the existing spread of wages in the economy, the Dent Index provides great insight into the quality of U.S. monthly job growth. In short, are we dragging the overall income of America down or lifting it up?
According to index creator and Dent Research co-founder Rodney Johnson. “By doing this, we can show what is really happening in the market. More importantly, we can help people better understand the true state of the economy.”