Nonfarm payrolls (NFP) increase by 22,000 in August. Private payrolls up 38,000.

As always, you can explore all the data yourself using our the Bancreek U.S. Employment data treemap, which can be accessed here and also is embedded below. For an in-depth tutorial on how we built this visualization, and how to best use it, please read our Visualizing Changes in Nonfarm Payroll Data post.

More healthcare please

Today's coverage of the nonfarm payroll data release will be our shortest ever. If you scroll back through our catalogue of research available for free on our website, we have written just about everything there is to write about healthcare jobs. So, in August, with the same story on repeat, there's just not much more for us to add.

The good news is you don't have to go back through the last two years of work to get caught up on our views on healthcare and its impact on the broader economy. Just yesterday we published our most extensive deep dive ever, which we entitled, "The Demise of the Dynamic Duo." In this report we drill deep into the current structural risks facing healthcare and immigration, and postulate that the Fed's monetary policy is simply inadequate to deal with these unprecedented structural headwinds.

Anyway, if you haven't had a chance to read yesterday's report, we really encourage you to do so.

We'll wait...

...

...

Welcome back! Now that you are up to speed on the structural economic "tornado" we could be dealing with soon, and a bit more skeptical on how effective the Fed's monetary policy "leaf blower" will be in fighting this tornado, we'll reward you by sharing one new chart that shows how important Health care and social assistance job growth has been over the past few years for the U.S. labor market.

Source: Bancreek Capital Advisors, LLC analysis of data from bls.gov

The above chart shows the cumulative job growth for Health care and social assistance (blue series) and All other private jobs (green series). We can see that 2022 was pretty good for the overall labor market. In that year the U.S. added 988k jobs in Health care and social assistance and 3.4 million private jobs in all other industries. But since then, all other industries have added just 1.6 million jobs, while Health care and social assistance has added 2.4 million jobs. Health care and social assistance jobs only comprise 17% of the total private workforce! They shouldn't be responsible for 61% of all net new jobs in a "healthy" economy.

Again, we think back to Tej Parikh's brilliant report title, "America: a healthy or healthcare economy?" The only problem with this title is we didn't think of it ourselves. Anyway, 15-months after publishing this must-read analysis, any remaining debate around this question is over.

The U.S. is a healthcare economy... at least until healthcare runs into the headwinds we wrote about yesterday.

Check us out on Schwab Network!

As promised, short (we never promised the "sweet" part). With the extra time we have given you, again, please consider reading yesterday's report. You can also check us out on Schwab Network, where just this morning we provided anchor Sam Vadas with a cliff notes version of the "Dynamic Duo" report and introduced our "tornado / leaf blower" analogy!

Click here to stream this interview

As always, thanks for reading. We look forward to sharing more Bancreek analysis with you next Thursday when we cover the CPI data release!