Not all jobs are created equal. There is a world of difference between a $100,000 a year energy industry job and a $10 an hour job running a cash register at Wal-Mart. You can comfortably support a middle class family on $100,000 a year, but there is no way in the world that you can run a middle class household on a part-time job that pays just $10 an hour. The quality of our jobs matters, and if current long-term trends continue unabated, eventually we are not going to have much of a middle class left. At this point the middle class has already become a minority in America, and according to the Social Security Administration 51 percent of all American workersmake less than $30,000 a year right now. We have a desperate need for more higher paying jobs, and that is why what is happening in the energy industry is so deeply alarming.
Just today we got some more disturbing news. According to Challenger, Gray & Christmas, the U. S. has lost 195,000 good paying energy jobs since the middle of 2014…
Cheap oil has fueled a massive wave of job cuts that may not be over yet.
Since oil prices began to fall in mid-2014, cheap crude has been blamed for 195,000 job cuts in the U. S., according to a report published on Thursday by outplacement firm Challenger, Gray & Christmas.
It’s an enormous toll that is especially painful because these tend to be well-paying jobs. The average pay in the oil and gas industry is 84% higher than the national average, according to Goldman Sachs.
Those are good paying jobs that are not easy to replace, and unfortunately the jobs losses appear to be accelerating. In their new report, Challenger, Gray & Christmas went on to say that 95,000 of those job cuts have come in 2016, and 17,725 of them were in July alone.
We also got some other bad news for the U. S. economy on Thursday.
Factory orders are down again, and at this point U. S. factory orders have now been down on a year over year basis for 20 months in a row. That is the longest streak in all of U. S. history.
This post was published at The Economic Collapse Blog on August 4th, 2016.