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Solid Job Gains Belie Economic Unease

Wall Street Journal (11/07/14) Eric Morath

Although the U.S. labor market in October reached its longest run of job creation since at least World War II, voters remain unhappy about the economy and wages have been slow to rebound. Some workers who had well-paying jobs before the recession are now being paid less or are working part time, which has reduced income levels and cut into consumer spending. The economy expanded 2.3% in the year ended in September, which roughly coincides with the gains seen over the last three years. However, most of the recent jobs added have been in low-wage industries like stores and restaurants, and retail and hospitality positions represented 37% of last month’s total gain.