Yesterday we noted that nearly half of the net new jobs created in May came from healthcare.
The reason for this is: healthcare jobs are constantly going up regardless of the state of the economy. Demographics plays a big part in that.
So when total job growth is weak, healthcare employment is going to look freakishly strong.
Along those lines, we made this fun chart.
The red line represents the year-over-year percentage change in healthcare’s share of total employment. So on a report like yesterday’s, it goes up, because healthcare’s share of total employment jumps.
The green line represents the year over year change in GDP (but we flipped it upside down).
The correlation between the two lines is pretty remarkable. And as you can see, the red line is starting to rise again, which should suggest that the green line will move higher again, representing further slowdown in GDP.