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Jobless rate sinks to a five-year low

Cal

Well-known member
http://news.yahoo.com/s/ap/20061103/ap_on_bi_ge/economy

Jobless rate sinks to a five-year low By JEANNINE AVERSA, AP Economics Writer
Fri Nov 3, 5:02 PM ET



WASHINGTON - The unemployment rate sank to a five-year low of 4.4 percent and workers' wages grew solidly last month, flashing a picture of a jobs market on firm footing as voters go to the polls.


Figures released Friday by the Labor Department suggested that employers are coping fairly well with a national economy that has lost a lot of momentum due to the housing slump.

Still, pockets of pain were evident. The struggling auto industry slashed jobs. So did companies involved in home building, as well as furniture makers and real-estate firms — casualties of the sour housing market. Retailers continued to pink-slip employees.

All told, the economy added 92,000 new jobs in October. Although that fell short of economists' expectations for an increase of around 125,000, gains in both August and September turned out to have been much stronger.

For those two months combined, the economy generated 139,000 more jobs than previously estimated, and that eased the sting from October.

So did the drop in the unemployment rate, from 4.6 percent in September. It marked the third month in a row that the rate had declined.

Republicans and Democrats looking for help in Friday's report — the last snapshot of the employment scene before next week's elections — clashed about which party would do a better job taking care of the country's broader economic and fiscal health.

"Tax cuts have led to a strong and growing economy, and this morning we got more proof of that," President Bush said at a Republican rally in Springfield, Mo.

House Democratic Leader Nancy Pelosi of California fired back: "Bush's handling of the economy is not good for America's middle-income families." Democrats argue the Bush's tax cuts mainly helped the wealthy, and they blame his trade policies for the country's bloated trade deficits and the loss of U.S. factory jobs.

How voters view job availability, wage growth and other economic conditions is likely to play a role in the balloting nationwide on Tuesday.

The president's approval rating on the economy is at 40 percent, according to an AP-Ipsos poll. And those surveyed trusted Democrats more than Republicans to handle the economy.

Workers, many of whom have seen their wages whittled by inflation, saw solid gains last month. Their hourly earnings climbed to $16.91, up 0.4 percent from September. Over the past 12 months, wages have grown by 3.9 percent.

"Consumers' paychecks are now staying ahead of inflation, which has eased because of the drop in energy prices," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group. "People are finding jobs and making more money even after inflation."

Growth in wages should also support consumer spending, an important fuel to keep the economy moving. But a rapid and sustained advance could make the Federal Reserve fret about inflation flaring up. That's not good for the economy or workers' pocketbooks, ultimately, because inflation can eat into everybody's buying power.

On Wall Street, worries about a rise in oil prices amid threats of attacks near production facilities in Nigeria eclipsed enthusiasm over the employment report. The Dow Jones industrial average lost 32.50 points to close at 11,986.04.

The hunt for jobs got shorter in October.

The average time the unemployed spent in their search was 16.5 weeks, an improvement from the 17.4 weeks a month earlier.

The 4.4 percent unemployment rate was the lowest since the spring of 2001.

The jobless rate for blacks fell to 8.6 percent last month, also the lowest in more than five years. The rate for Hispanics dropped to 4.7 percent, the lowest in record-keeping going back to 1973.

The employment gains come against a backdrop of a slowing national economy.

Given these circumstances, the Federal Reserve held interest rates steady last week for the third meeting in a row but made clear that policymakers will keep a close eye on inflation.

Friday's report reduced the chances that the Fed would cut rates any time soon and kept alive the notion that another rate increase might be needed at some point to quell inflation.

To fend off inflation, the central bank since June 2004 has hoisted rates 17 times, the longest string of increases in Fed history. The Fed's goal is to slow the economy sufficiently to thwart inflation but not so much as to push it into recession.

Economic growth slowed to a 1.6 percent annual rate in the late summer, the most sluggish pace in more than three years. The housing slump was a major factor in the slowdown. Economists believe growth in the current October-to-December quarter will turn out better.

"Even though the economy has downshifted ... you have a picture of a labor market that is pretty healthy," said Joel Prakken, chairman of Macroeconomic Advisers.
 

Econ101

Well-known member
As you bring the average wage down, you get more employment. That is what has been happening. The question is, can you live off it?

Under communist china, they had full employment but pretty lousy wages.

Employment numbers need to be kept in context. With inflation eating at the minimum wage and real wages for wage earners (adjusted for inflation) going down, you would expect lower unemployment numbers.

The challenge is to increase real wages and employment at the same time.
 
A

Anonymous

Guest
Econ101 said:
As you bring the average wage down, you get more employment. That is what has been happening. The question is, can you live off it?

Under communist china, they had full employment but pretty lousy wages.

Employment numbers need to be kept in context. With inflation eating at the minimum wage and real wages for wage earners (adjusted for inflation) going down, you would expect lower unemployment numbers.

The challenge is to increase real wages and employment at the same time.

Kind of like the business owner in Helena- $6 an hour and a free Taco for lunch- and she couldn't figure out why she couldn't get any help ... :roll: :lol: :lol: :? :cry: :cry:
 

Cal

Well-known member
http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20061104/BIZ/611040343/1005

November 4, 2006

Jobless rate falls, wages increase

By McClatchy Newspapers

The Associated Press

WASHINGTON — The unemployment rate fell to a five-and-a-half-year low of 4.4 percent in October and the economy added 92,000 jobs, the Labor Department reported Friday, providing Republicans reason to crow just days ahead of Tuesday's congressional elections.

Unemployment was 4.6 percent in September. The new statistics, which also show rising wages, are good news for working Americans, especially given that the strong hiring came amid a slowing economy.

But the numbers come with a downside, too. A tight labor market creates inflationary pressures, and that makes it unlikely that the Federal Reserve will cut interest rates soon to spur an economy being slowed by the nationwide housing slump.

The 92,000 new jobs in October were well below analysts' forecasts of about 125,000 new jobs. But that was offset by the Labor Department's upward revision of August and September job figures. The department said the economy actually added 139,000 jobs more than previously reported in the prior two months.

Strong job numbers help ease concerns about the depth of the U.S. economic slowdown. Third-quarter growth slowed to 1.6 percent, driven down largely by the slumping housing market. Sluggish growth figures had prompted some analysts to warn of rising risks of recession, but the new job numbers allay such fears.

In addition, average hourly earnings rose 0.4 percent in October to $16.91, an increase of 3.9 percent over the past 12 months after adjusting for inflation.

The latest trends help ease the grip on family finances commonly called the middle-class squeeze.

"For workers, you've got employment gains and real-wages gains, so that adds up to spending power," said Nigel Gault, chief U.S. economist for Global Insight, an economic consultancy in Lexington, Mass. "The question really is what happens next."

Gault expects that unless economic growth rebounds sharply from the dismal third quarter, "we'll see some weaker employment numbers in the next few months."

President Bush, campaigning for Republican candidates in Missouri, said his 2003 tax cuts paved the way for strong hiring and that the job numbers vindicate his tax policy.

"All those forecasts by the Democrats turned out to be wrong," Bush said.

House Democratic leader Nancy Pelosi, D-Calif., disagreed.

"While we are glad there is some good news for the American people, this jobs report does not fundamentally change the fact that President Bush's handling of the economy is not good for America's middle-income families," she said, adding that "for the first time in generations, parents worry that their children will not be better off than they are."

Politics aside, the October job stats complicate the Federal Reserve's job of promoting employment and curbing inflation - goals that are sometimes contradictory.
 

passin thru

Well-known member
In addition, average hourly earnings rose 0.4 percent in October to $16.91, an increase of 3.9 percent over the past 12 months after adjusting for inflation.
"For workers, you've got employment gains and real-wages gains, so that adds up to spending power," said Nigel Gault, chief U.S. economist for Global Insight
 

kolanuraven

Well-known member
Yeah...it's a nice round even number now.....we own 10 instead of 7!! Makes the math sooooo much easier.

It's been really easy to hire lately. Those college graduates, esp the PhD's, really work hard!!
 

Red Robin

Well-known member
kolanuraven said:
Yeah...it's a nice round even number now.....we own 10 instead of 7!! Makes the math sooooo much easier.

It's been really easy to hire lately. Those college graduates, esp the PhD's, really work hard!!
They deserve a job with a hat flippin burgers asking if you'd like cheese with that since they got their degree in palentology. Handing out the happymeal with a dinosaur inside should give them satisfaction.
 

Econ101

Well-known member
This kind of reminds me of energy prices and sales at your local furniture store and the budget deficit. Hike the prices way up and then claim that they went down while they are still higher than before the sale. Some people are fooled by it.

While an increase in the wage rate is good for working Americans, there is a lot of making up to do to get back to the good old times. Here is a recent article (August) on the real wage scene:

CNNMoney.com


NEW YORK (CNNMoney.com) -- Most workers have not seen wage gains keep pace with inflation during the current economic expansion, the first time that has happened since World War II, according to a published report.

The New York Times reports that the median hourly wage for American workers has declined 2 percent since 2003, after factoring in inflation. Median wages are the point at which equal numbers of workers earn more and less.


The paper reports that while average family income, adjusted for inflation, has continued to advance at a good clip, that has been helped by gains by the top wage earners.

The paper says that about nine out of 10 workers have seen inflation that has outpaced their pay increases over the last three years, according to the Labor Department. That includes workers earning up to $80,000 a year, a level that puts them in the 90th percentile of wage earners.

The paper reports that with employment gains softening in recent months, inflationary pressures stay high due to factors such as high energy prices, so the gap between wages and prices could increase for many workers.

The paper reports that the gap between the top wage earners and other workers is growing. It cites research from economists Emmanuel Saez and Thomas Piketty that showed that in 2004, the top 1 percent of earners --a group that includes many chief executives --received 11.2 percent of all wage income, up from 8.7 percent a decade earlier and less than 6 percent three decades ago.

In addition, corporate profits are growing more quickly than wages and salaries. Employee pay now makes up the lowest share of the nation's gross domestic product since the government began recording the data in 1947, according to the paper, while corporate profits have climbed to their highest share since the 1960s.

Why minimum wage doesn't matter. Top of page
 

Cal

Well-known member
These are the "good old days". Perhaps some shortcomings could be identified by looking in the mirror instead of at the government.

Real Wages Grew 2.4 Percent Over The Past 12 Months. This means an extra $755 for the average full-time production worker or about $1,327 for the typical family of four with two wage earners.
Real After-Tax Income Per Person Has Risen By 9.8 Percent – $2,660 – Since The President Took Office.
Our Economy Has Grown A Solid 2.9 Percent Over The Past Four Quarters – Faster Than Any Other Major Industrialized Country.
Productivity Has Grown At An Annual Rate Of 3 Percent Since The First Quarter Of 2001, Up From A 2.4 Percent Annual Rate During The Preceding Five Years.
Gas Prices Have Fallen Almost 82 Cents A Gallon Since Early August.
Employment Has Increased In All But One State Over The Past 12 Months Ending In September.
 

passin thru

Well-known member
From 7 to 10 BK in the Bush Administration.....................I guess that mean a vote for the Reps. After all someone doing that good............gotta be GW's fault.
 

kolanuraven

Well-known member
PT...I do vote Rep at times....never said I didn't.

I voted Rep. for our Gov. First Rep Gov since Reconstruction here in Ga. He's done a good job as far as I call tell....so I voted for him again ( early voting here).


It's just George II I have a problem with and the people he surrounds himself with. If he was Democrat...I'll still despise the little man.
 

passin thru

Well-known member
It's odd you never mentioned that before
bean_laughing_md_wht.gif
 

kolanuraven

Well-known member
Sr. Bush....I like him better than Jr. if you held a gun on me and made me pick. I thought he made a much better ' post war' assessment of Iraq than Jr did and Sr. realized that there had to be a better way than to go in guns'ablazin, thus the no-fly boundaries, etc. With those constraints I'd say he was hoping and planning for a better ' next step' in Iraq after much thought. Just keep Saddam in a bottle till he could figure out what was the best step next.

I have made it a point several times to state that at times I have voted Rep...other times...Dem..and that it ALL depends on the person to me and THEIR qualifications, not their party qualifications. You just never slowed down enough from trying to chew on my hind leg to R-E-A-D!!!!
 

passin thru

Well-known member
Oh I slow down once in a while, it's just that I want to make sure and not label someone else's stance on you.
What about Gore, do you like him. What about Gore getting a cushy job in the service because of his father.............was that shades of what you claim about Jr.

Oh, is your hind leg healed up........ready for another go.
pa_4.gif
 

kolanuraven

Well-known member
Yes my dear PT, there are a few labels that have been hung on me as of late....but it seems mostly to come from post menopausal women who've seen their better years already. But I digress......

Anyhoo....your answer will have 2 parts. Gore as a person...he's a neat guy. I can say this thru various dealing in the cattle biz with his family's farm in years past. Nice guy, smart guy, was OK in my book.

As a politician, not too good. It takes a certain 'type' of personality for that role and he's just not got it. He's got/had some excellent ideas that the right approach was not placed on those ideas and they got lost in all the other politico-hubbub.

As far as being in the service, I think he was journalist if I remember correctly. Yeah, I'd say it was a better position to be in than most and I'm sure his Dad/connections assisted in that......BUT....he DID serve and he DID go to war!!! No matter how you spin it GW never left the safety of the states!!!
 

passin thru

Well-known member
So if you rate military service........is it safe to presume you rate Klinton lower than Bush since he despised the military. After all he only left the safety of the US to smoke a little dope

I just presumed ole Gore got into the cattle business by being a lacky for the commy Armand Hammer.

Also what about Carter............my take is that his only claim to fame was the Iran hostage rescue debacle, sky high interest and being nominated for the Nobel peace prize................which I rate at zero. Probably the worst Prez of all time.
 

Econ101

Well-known member
Cal said:
These are the "good old days". Perhaps some shortcomings could be identified by looking in the mirror instead of at the government.

Real Wages Grew 2.4 Percent Over The Past 12 Months. This means an extra $755 for the average full-time production worker or about $1,327 for the typical family of four with two wage earners.
Real After-Tax Income Per Person Has Risen By 9.8 Percent – $2,660 – Since The President Took Office.
Our Economy Has Grown A Solid 2.9 Percent Over The Past Four Quarters – Faster Than Any Other Major Industrialized Country.
Productivity Has Grown At An Annual Rate Of 3 Percent Since The First Quarter Of 2001, Up From A 2.4 Percent Annual Rate During The Preceding Five Years.
Gas Prices Have Fallen Almost 82 Cents A Gallon Since Early August.
Employment Has Increased In All But One State Over The Past 12 Months Ending In September.



All this and we still have to borrow from our youngsters. I thought republicans were for balancing the budget. If they can't do it in the best of times and have to steal from our children, imagine what they do most of the time--Oh, I forgot, it is almost 9 trillion now--over 200 billion this year-- and that doesn't include supplemental emergency Iraq war spending or borrowing from the SS surplus!!!!

I sure wish the repulicans would act like republicans instead of the same old politicians they blame the democrats of being.
 
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