According to the June jobs report, the economy added 195,000 jobs last month, on par with the revised pace in May. Economists were looking for 165,000, and a dip in unemployment to 7.5%.
Despite the gains, the unemployment rate remained at 7.6% because more people hit the pavement looking for jobs--making it all the more difficult for job seekers.
Paychecks grew at a modest pace and have managed to beat (government-reported) inflation in the past year. Average hourly pay increased $0.10 to $24.01, up 2.2% from a year ago. Meanwhile, over the 12 months ending in May, consumer prices ticked higher by just 1.4%.
Leisure and hospitality (up 75,000) posted the strongest gains in June compared to recent months. But it is worth noting jobs in this sector tend to pay less than other industries.
In addition to the increase in low-paying jobs, here are seven things to consider when you evaluate how good the June jobs report really is:
This flourishing shadow economy is a $2 trillion grey market, reports the University of Wisconsin-Madison. It's composed of people who aren't on official payrolls, but get paid for work nonetheless.
"It's important to note this is not the illegal economy," Yahoo! Finance senior columnist Rick Newman told The Daily Ticker. "We're talking about people who are doing legitimate work that would be ordinary work if it were taxed, but they're getting paid in cash."
Underground economies are typically seen in places like Brazil and southern Europe. But the tight job market and uncertain economic environment in the U.S. has spurred its growth here to double from 2009.
According to a study by Friedrich Schneider, a professor at Johannes Kepler University in Austria, the U.S. shadow economy amounts to nearly 8% of gross domestic product.
It also costs the IRS some $500 billion.
"People are running out of patience when it comes to finding a job and losing income," Laura Gonzales, professor of personal finance at Fordham University told USA Today. "So it's not that surprising to have workers take jobs that are in the shadow economy. But it's a sign of how bad things are and how we have to get the real economy moving again."
Who's living in America's underground economy? Check out the most popular jobs, as well as just how much it's costing the United States: What America's $2 Trillion Underground Economy Says About Jobs
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