The unemployment in the US continues to slip according to the latest job report and job creation mainly occurs in the restaurant and bar sectors. From this job report, I think that the US economic growth reaches its limit and the job creation in the restaurant and bar sector is not a sustainable job creation source.
I am now discussing how I come to this conclusion. Firstly, although it is unfair to say the jobs in restaurants and bars do not create actual value, jobs and work in restaurants and bars do not provide as many additional jobs as jobs and work in other sectors, this means the number of new jobs created by the increase in jobs outside restaurants and bars is much lower than the number of new jobs created by the increase in jobs in many other sectors. This means when the majority of new jobs are generated by by restaurants and bars, the future increase in jobs is very likely to slip. Moreover, the jobs in restaurants and bars are dependent of the exogenous factors, that while the economy is in boom and people are generally wealthy, more jobs for restaurants and bars are created; however, when the economy is slipping and people receive lower incomes, people will go to restaurants and bars less often, the demand for jobs in restaurants and bars will decline sharply. Therefore, I conclude that the future job increase in the US will be even much more slower.
In addition, when an economy is experiencing a sharp growth, the job creation will more concentrate in the sectors where can generate high levels of profits and even more jobs within their sectors and outside their sectors. This is how an economy can grow at an incredible fast speed.
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