Unemployment still at 4.5%

Zeno · #1 01-05-2007, 11:56 AM

Unemployment Article

I have copied most of the article below -

167,000 Jobs Added to Payrolls in Dec.
By JEANNINE AVERSA, AP Economics Writer
44 minutes ago

WASHINGTON - Employers stepped up hiring last month, boosting payrolls by a healthy 167,000 and keeping the unemployment rate steady at a still historically low 4.5 percent. Workers' wages grew briskly.

The latest snapshot of the nation's employment climate, released Friday by the Labor Department, showed that the jobs market ended 2006 on a strong note and provided fresh evidence that the troubled housing and automotive sectors aren't dragging down employment across the country.

The tally of new jobs added to the economy last month exceeded analysts' forecasts for a gain of around 115,000 and was the best showing since September. Analysts were predicting the politically sensitive jobless rate would remain unchanged from November, which it did.

"This is a good report for the American worker," said Ken Mayland, president of ClearView Economics.

For all of 2006, the nation's unemployment rate dropped to a six-year low of 4.6 percent as the economy added 1.8 million jobs. In 2005, the unemployment rate averaged 5.1 percent.

With the economy losing momentum, though, many economists predict the jobless rate will climb this year and average around 4.9 percent.

In December, jobs gains in education and health care, business services, financial firms and leisure and hospitality swamped job losses in construction, manufacturing and retail. Jobs gains for both October and November turned out to be stronger than the government previously thought.

Many employers showed not only a greater appetite to hire in December but also more willingness to boost compensation to workers.

Workers, many of whom had seen their paychecks eaten by inflation, saw wages grow robustly last month. Average hourly earnings jumped to $17.04, a sizable 0.5 percent rise from the prior month. Analysts were forecasting a more modest, 0.3 percent increase.

Over the last 12 months, wages grew by a strong 4.2 percent. That matched the annual gain registered in November and was exceeded only by a 4.3 percent annual increase in November 2000.

Growth in wages should support consumer spending _ a force that helps drive the economy. But a rapid and sustained advance _ if not blunted by other economic forces _ can stoke concerns about inflation.

Federal Reserve Chairman Ben Bernanke says the central bank will be on close watch for any signs that wage growth might be spurring an unwanted pickup in inflation.

The Federal Reserve, which has boosted rates 17 times since June 2004 to fend off inflation, has been on the sidelines since August. Analysts believe the Fed will keep its finger on the interest-rate pause button when it meets next on Jan. 30-31.

The latest employment snapshot comes as the new Democratic-controlled Congress, which convened Thursday, will now play a lead role in shaping policies for workers and businesses.

A top priority for Democrats is boosting the federal minimum wage from $5.15 an hour to $7.25 an hour. President Bush said he supports such a move as long as it is paired with business-friendly provisions, which would soften the sting to employers who would have to dole out more in labor costs.

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In only her first day on the job Ms. Bolshevik is already proving her Goddess status. [img]/images/graemlins/smirk.gif[/img]

This is certaintly fun!

Le Misanthrope

Exsubmariner · #2 01-05-2007, 02:02 PM

I can't wait for day 2. I hear she will lift her skirt and solve the global warming problem by cooling the entire planet by 5 degrees C.

hmkpoker · #3 01-05-2007, 02:06 PM

[ QUOTE ]
A top priority for Democrats is boosting the federal minimum wage from $5.15 an hour to $7.25 an hour. President Bush said he supports such a move as long as it is paired with business-friendly provisions, which would soften the sting to employers who would have to dole out more in labor costs.

[/ QUOTE ]

Because that makes sense.

mosdef · #4 01-05-2007, 02:13 PM

[ QUOTE ]
I can't wait for day 2. I hear she will lift her skirt and solve the global warming problem by cooling the entire planet by 5 degrees C.

[/ QUOTE ]

I think that would be a fairly destructive change!

HeavilyArmed · #5 01-05-2007, 02:33 PM

[ QUOTE ]
A top priority for Democrats is boosting the federal minimum wage from $5.15 an hour to $7.25 an hour.

[/ QUOTE ]

Why can't the Dems legislate real wealth? I mean c'mon, $7.25 an hour? Why not $17.25/hr? Or $77.25/hr and we'll all be farting through silk!

Make me rich Dems!

Exsubmariner · #6 01-05-2007, 02:52 PM

[ QUOTE ]
[ QUOTE ]
I can't wait for day 2. I hear she will lift her skirt and solve the global warming problem by cooling the entire planet by 5 degrees C.

[/ QUOTE ]

I think that would be a fairly destructive change!

[/ QUOTE ]

Alternatively, other liberals/democrats could simply stop talking. The hot air deficit might be enough to forego the skirt raising.

ACPlayer · #7 01-05-2007, 02:54 PM

Good time to do it. Be offensive if unemployment was 20 percent.

Clear logical thinking, IMO.

mosdef · #8 01-05-2007, 03:11 PM

[ QUOTE ]
Alternatively, other liberals/democrats could simply stop talking. The hot air deficit might be enough to forego the skirt raising.

[/ QUOTE ]

Actually, the best value we are getting out of the politicians is the hilarity of the absurd statements they make. If you take that away, they wouldn't have any value!

Bicycles_Biatch · #9 01-05-2007, 03:31 PM

[ QUOTE ]
A top priority for Democrats is boosting the federal minimum wage from $5.15 an hour to $7.25 an hour. President Bush said he supports such a move as long as it is paired with business-friendly provisions, which would soften the sting to employers who would have to dole out more in labor costs.

[/ QUOTE ]

If you want to see Unemployment sky-rocket... increase MW.

Two things will happen... companies will make employees do more and work harder in order to elimate jobs to compensate for the higher cost of doing business.

-And- employers may realize that some of their employees don't work hard enough to "deserve" the new minimum wage...

I think there has historically been big turn-over in the market the year or two after MW is raised.

The thing I don't like is that people don't talk about how this has a trickle UP affect.

mosdef · #10 01-05-2007, 04:22 PM

[ QUOTE ]
[ QUOTE ]
A top priority for Democrats is boosting the federal minimum wage from $5.15 an hour to $7.25 an hour. President Bush said he supports such a move as long as it is paired with business-friendly provisions, which would soften the sting to employers who would have to dole out more in labor costs.

[/ QUOTE ]

If you want to see Unemployment sky-rocket... increase MW.

Two things will happen... companies will make employees do more and work harder in order to elimate jobs to compensate for the higher cost of doing business.

-And- employers may realize that some of their employees don't work hard enough to "deserve" the new minimum wage...

I think there has historically been big turn-over in the market the year or two after MW is raised.

The thing I don't like is that people don't talk about how this has a trickle UP affect.

[/ QUOTE ]

Actually...

The somewhat logical conclusion that MW up => unemployment up is debatable.

For example, a lot of the unemployment caused by increases in MW is caused by slashing jobs to teenagers. Since all of us over 30 can agree that we hate teenagers, this can hardly be perceived as a bad thing. (Just kidding teenagers! I need you to mow my lawn.)

But it's hard for me to believe any "study" on the effects of minimum wage because I don't really trust any economist to leave their political bias out of their interpretations of the results. Sometimes it's no fun being a skeptic.