Wall Street: Kerry's right about "second-rate" jobs
Democratic presidential candidate John Kerry's assertion that the U.S. has been creating mainly low-paying, "second-rate'' jobs during the past year's expansion is starting to resonate on Wall Street.
"The vast majority of net new jobs created have been in the low-wage sectors of the economy, and income growth has been disappointing,'' David A. Rosenberg, chief North American economist at Merrill Lynch & Co., wrote July 9. Lagging incomes may cause "consumer spending to slow in coming quarters.''
Stephen S. Roach, chief economist at Morgan Stanley & Co. in New York, reached a similar conclusion: "While there has been some improvement on the hiring front in recent months, the quality of such job-creation has been decidedly sub-par,'' Roach wrote the same day. "Unless that changes, the risks to a sustainable economic recovery will only intensify.''
Even the notoriously Republican Wall Street crowd has to admit Kerry's correct on this score.