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Margie Patel, Wells Fargo Advantage Funds senior portfolio manager, weighs in on today’s jobs number and the economic recovery.
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So we're gonna bring in -- argument managing director and senior portfolio manager at wells capital management.
Glad you're here because you know to the things that you pointed to -- that the jobs that -- we saw increases in our low wages and we also slowed drops in manufacturing not good right.
Well that says that big jobs numbers -- quite as good as it needs.
Because of the fact they are low wages also if you looked at the hours worked.
If you looked at the average hourly wage.
Just very very slightly positive in other words probably losing ground vs even the low rate of inflation so not a real encouraging picture all round.
And muggy all of the job gains more than a foot was on the retail side and I would suggest that -- -- holiday hiring -- had an early Thanksgiving this year around that's this time around.
Not exactly suggesting a healthy recovery is that.
Well that's right in -- a lot of those are part time jobs not permanent jobs.
And relatively low wage jobs -- not jobs that have a professional advancement tracks so just barely slogging along little above zero.
And -- you look at three factors right.
-- housing.
And the financial stocks and all three seem to be doing.
-- counts of some sort of.
Well it does say there are some sources.
Of strengthen the economy and it shows you how the American economy can't really regenerate itself.
A car sales are on a multi year upswing so that will go from being in negative a couple years ago to positive contributor.
And also housing even more important which has been -- negative right up till the last few months.
And housing is important because again it's -- long sustained uptrend I think.
And also housing is very labor intensive sector -- jobs created as result of new housing units being constructed.
Will help to increase the jobs.
What the wages will be is another story but at least more people to work is always good and I think the financials.
-- good I was like to look at the financial stocks because that says something about the basic liquidity in the financial system.
And here again you see a second it's under enormous pressure.
Gradually rebuilding itself so the stock prices are good sign.
-- -- looking ahead with this recovery is being painfully slow.
As we all know.
Weighted do you think we'll get back to what we would consider a healthy economy and a healthy job environment.
I think it's a multi year process ahead of us I think it'll be a slow slog.
Actually I look at the very very low rates that we have right now the treasury rates is really being assigned -- sickness of the economy.
When we start to see treasury rates on a sustained upward move.
That was tell me the war going back to what used to be normal -- trio seven to an economy -- grow -- three or 4%.
But until we start to see the Fed knocked out pushing down on -- so much I think we have yeah more the same.
-- quickly some of the sectors you like one of them is energy let us say we have an energy boom here in the United States you like the shell gas and liquids right.
Yes because here's an industry that really has exploded in the last half a dozen years where didn't previously exist.
It'll help to lower the cost of energy in the whole economy making our economy again.
More efficient than just about any other developed country and also a source of real wealth that's created this can build -- the sector.
And here in Marmara that market -- salad plus capital management thank you for taking -- time.
Good stuff and eight point eight million jobs were lost as a result of the financial crisis four point two million have been recovered that's less than half.
And it's unlikely that we'll ever get all of them back because companies -- so used to doing with less.
