What's Going on With the Recovery?: Ritholtz Chart

Barry Ritholtz is a Bloomberg View columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He blogs at the Big Picture and is the author of “Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.”
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I really like this bubble chart. I saw it last night in a report from the National Employment Law Project titled: "The Low-Wage Recovery: Industry Employment and Wages Four Years into the Recovery."

Interestingly, the data has provoked opposing reactions from two media outlets. The Washington Post's Wonkblog used the chart in a piece with the headline: "U.S. job growth is coming in all the wrong places." The New York Times' Upshot went in the opposite direction: "A Low-Wage Recovery? The Evidence Isn't There."

I see two things in the chart: The largest numbers of new jobs are coming from low-wage industries (the chart doesn't inform us as to whether this is unusual based on prior recoveries and/or expansions).

Second, federal, state and local governments are still a net negative on employment -- which is very different from past recoveries.

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To contact the author on this story:
Barry L Ritholtz at britholtz3@bloomberg.net