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.
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.