Labor

Following Chicago PMI's collapse in July, August failed to provde any bounce in the soft survey data, printing unchanged at 58.9 (July was revised slightly higher).

While marking the eighteenth consecutive above-50 reading, this month's unchanged result follows July's sharp decline that snapped a run of five straight monthly increases in business optimism.

Only 2 components managed any improvement in August (production and new orders) with both employment and inventories weak:

ADP reports the US economy added 237,000 jobs in August, notably more than the expected 185k. This is the biggest addition since March, and follows upward revisions for July. While Services dominated (adding 204k), Goods-producing jobs rose 33k (with manufacturing adding 16k).

Medium- and Large-seized firms added the most jobs in August.

Manufacturing added 16,000 jobs in August....

Trade/Transportantion and Leisyure added the most jobs in August...

Underfunded public pensions are undoubtedly the biggest threat facing America's long-term economic stability.  As we've argued numerous times in the past, the size of the aggregate underfunding, $5-$8 trillion depending on your assumptions, is simply too large for even the overly generous American taxpayer to cover.

Of course, one of the biggest contributors to this inevitable crisis is the state of Kentucky which has a funding hole of $33-$84 billion, depending on your discount rate assumptions, according to an analysis recently conducted by PFM Group.

According to the latest BLS data, average hourly wages for all US workers rose 2.5% relative to the previous year, well below the Fed's "target" of 3.5-4.5%, as countless economists are unable to explain how 4.3% unemployment, and "no slack" in the economy fails to boost wage growth. Another problem with tepid wage growth, in addition to crush the Fed's credibility, is that it keeps a lid on how much general price levels can rise by.

Authored by Jazz Shaw via HotAir.com,

Generally when we see news of a new minimum wage law it relates to a city or state raising it. Missouri went in the opposite direction recently, instituting a rule which forbids any local government entities from instituting a minimum wage which is higher than that state minimum. (Currently sitting at $7.70 per hour.)