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View Full Version : Jobless Rate DROPS Again.


Drbio
07-08-2005, 09:42 AM
washingtonpost.com


Job growth tepid, jobless rate drops

Reuters
Friday, July 8, 2005; 8:36 AM



WASHINGTON (Reuters) - U.S. employers added 146,000 jobs in June, below Wall Street forecasts, but the unemployment rate fell to its lowest point since September 2001 as few people joined the labor force, a government report showed on Friday.

The Labor Department revised up job growth in April and May to 292,000 and 104,000, respectively - boosting the two-month count by 44,000 payroll jobs.

June's tepid employment growth came in below analyst expectations for 188,500 new jobs in the month. But the decline in the unemployment rate to 5.0 percent was a nice surprise, since Wall Street had expected it to hold at 5.1 percent. The drop was mostly due to a paltry 1,000 increase in the work force, which includes those looking for work as well as those who have jobs.

Factory payrolls shrank for the fourth straight month as auto assembly and parts plants cut back on production. A glut of inventories has prompted many automakers to slow production lines until demand can catch up. Some 96,000 manufacturing jobs have been lost since August 2004.

While 18,000 workers were hired in the construction industry last month, most of June's employment growth came in the service sector. Professional and business services jobs rose 56,000, education and health services were up 38,000 and leisure and hospitality payrolls grew 19,000.

In a sign of underlying weakness, the length of the average workweek was 33.7 hours, unchanged from May's downwardly revised length. The factory workweek was also unchanged at 40.4 hours, while overtime held at 4.4 hours.

Employers typically increase the length of the workweek before taking on new workers, so a lack of growth in that area can mean scant hiring ahead.

Average hourly earnings rose 3 cents to $16.06 and have risen 2.7 percent over the year.

madape
07-08-2005, 10:49 AM
It's been a long time since we heard the left talk about jobs. Whatever happened to that "Herbert Hoover" rhetoric?

Mavdog
07-08-2005, 12:19 PM
It seems that Bush is indeed a big fan of Keynes, piling up huge historic deficits (not to mention a war economy) to juice the economic engine. Isn't it a misnomer to call him a fiscal conservative?

FishForLunch
07-08-2005, 01:37 PM
How do you reduce the huge trade deficts with China. Export more to China? Import less from China? I guess the only way is to have lower labor costs, that is not going to happen. How do you tell a worker who makes $20/hr to work for $5/hr. The only thing we can do is shift the trade defict with China to other relatively friendlier countries ie. India, Indonesia, Malaysia etc...

MavKikiNYC
07-08-2005, 01:43 PM
Bush's fault.

Chiwas
07-08-2005, 02:47 PM
Factory payrolls shrank for the fourth straight month as auto assembly and parts plants cut back on production. A glut of inventories has prompted many automakers to slow production lines until demand can catch up. Some 96,000 manufacturing jobs have been lost since August 2004.

While 18,000 workers were hired in the construction industry last month, most of June's employment growth came in the service sector. Professional and business services jobs rose 56,000, education and health services were up 38,000 and leisure and hospitality payrolls grew 19,000.

...Any increment in employment is good news.

However, the recession hardly will stop if the manufacturing sector is not recovering.

That, and the deficits called by FFL.

madape
07-08-2005, 03:12 PM
Recession? What Recession? Are you talking about Mexico?

The US recession officially ended almost four years ago, in November 2001.

kg_veteran
07-08-2005, 04:05 PM
Isn't it a misnomer to call him a fiscal conservative?

Are there any of those left?

Rhylan
07-08-2005, 05:33 PM
Originally posted by: FishForLunch
How do you reduce the huge trade deficts with China. Export more to China? Import less from China? I guess the only way is to have lower labor costs, that is not going to happen. How do you tell a worker who makes $20/hr to work for $5/hr. The only thing we can do is shift the trade defict with China to other relatively friendlier countries ie. India, Indonesia, Malaysia etc...

I'm still waiting for someone to answer my question from awhile back... what's so bad about a trade deficit? I think it's good that lower-skill manufacturing jobs are going elsewhere.. we've got one of the most educated populations in the world and certainly the most free business climate. No sense in expecting so many of our people to work assembly lines when they're capable of more.

Rhylan
07-08-2005, 05:33 PM
Originally posted by: kg_veteran

Isn't it a misnomer to call him a fiscal conservative?

Are there any of those left?

Me.

Who'll vote for me?

Chiwas
07-08-2005, 06:33 PM
Originally posted by: madape
Recession? What Recession? Are you talking about Mexico?

The US recession officially ended almost four years ago, in November 2001.In talking about the GNP, you may be correct. In terms of employment, the US has not improve or recover since June of (precisely) 2001.

In any way, the point is, while the manufacturing jobs are not recovering, the economy is fragile.

Mavdog
07-08-2005, 07:52 PM
Originally posted by: Rhylan
I'm still waiting for someone to answer my question from awhile back... what's so bad about a trade deficit? I think it's good that lower-skill manufacturing jobs are going elsewhere.. we've got one of the most educated populations in the world and certainly the most free business climate. No sense in expecting so many of our people to work assembly lines when they're capable of more.

classical economic theory says deficits in trade cannot continue endlessly. the economy which is running the deficit will eventually run out of capital. The capital wil be concentrated in the economy with the surplus.

America has evolved into more of a service economy from a manufacturing eceonomy. The trouble is that services today are easily provided offshore in real time...outsourcing. if there is comparable education/language skills (see Dell support centers in India) that service can be provided much cheaper outside of America.

I agree that it is somewhat "good" that the low wage manufacturing jobs move to underdeveloped economies, creating a positive force to their growth. Look at China and the emerging middle class there.

However if those manufacturing jobs go elsewhere, what happens to the American worker? they must become more productive so the average wage is still competitive with the low wage. it's all about training, innovation. education.