Economy Adds 211,000 Jobs in March; Unemployment Rate at 4 1/2 Year Low: Foxnews.com

[nelms]

http://www.foxnews.com/story/0,2933,190942,00.html

Economy Adds 211,000 Jobs in March; Unemployment Rate at 4 1/2 Year Low

Friday , April 07, 2006

WASHINGTON — Employers added 211,000 jobs in a springtime hiring burst that benefited almost all sectors of the economy and lowered the national unemploment rate to 4.7 percent.

The latest snapshot, released by the Labor Department on Friday, suggested that an accelerating economic expansion is putting companies in the hiring mood, brightening prospects for job seekers.

Click here to visit FOXBusiness.com's Economy page.

Hiring gains were fairly widespread. Construction, retailers, financial activities, education and health care, and government were among the sectors posting payroll gains. That help to blunt job losses in manufacturing and in the transportation industries.

President Bush, whose poll standings have been falling in recent months, said at the White House that the newest figures make an argument for extending and renewing his tax cuts.

"Some are now proposing that we raise taxes either by repealing the tax cuts or letting them expire," he said. "These are the same politicians who told us that letting the American people keep more of their own money would be reckless and irresponsible. They were wrong then and they are wrong now."

The unemployment rate, which dropped from February's 4.8 percent, ended up matching January's jobless rate, which was the lowest in 4 1/2 years.

"Businesses are regaining confidence to the point where they are now actively hiring new workers," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group.

Employment was stronger in March than economists were expecting. Before the release of the report, they were forecasting a gain of 190,000 jobs and they said they believed the overall civilian jobless rate would hold steady.

Good news on the economy, however, hasn't been helping Bush in the eyes of the public. Bush's job-approval rating of 36 percent is at its lowest level in an AP-Ipsos poll

On the jobs front, payroll gains in January and February turned out to be slightly less than previously reported but still suggest decent job growth. Employers added 154,000 jobs in January, versus the 170,000 estimated a month ago. In February, payrolls grew by 225,000, rather than the 243,000 previously reported.

Employees' average hourly earnings, meanwhile, were $16.49 in March, a modest 0.2 percent increase from February. Economists were forecasting a 0.3 percent increase.

With the economy growing smartly and the job market flowering, the Federal Reserve and other economists are keeping a close eye on wage growth.

Wage improvement is good for workers, but a rapid, sustained acceleration would trigger inflation concerns.

Fed Chairman Ben Bernanke and his colleagues boosted interest rates on March 28 to a five-year high and hinted that additional increases were possible to keep inflation at bay.

An improving job market and stepped-up production "in combination with the elevated prices of energy and other commodities have the potential to add to inflation pressures," Fed policymakers said at the March meeting.

Economists believe rates will go up again on May 10.

The report also showed the average time that the 7 million unemployed spent searching for work in March was 16.9 weeks, down from 17.6 weeks in February.

The employment figures for March come against the backdrop of a rebounding economy. Analysts believe the economy emerged from an end-of-year funk and grew at an annual rate of 4.5 percent or higher in the just ended January-to-March quarter. The economy is expected to moderate in the current April-to-June quarter but still turn in a good performance.

The employment report showed that construction companies added 7,000 jobs in March. Retailers expanded employment by 29,000 positions. Financial companies added 16,000 jobs. Education and health care boosted payrolls by 33,000 and the government by 24,000. Manufacturers, however, cut 5,000 jobs and the transportation and warehousing sector shed 7,600 positions.

Simply amazing how our economy has performed, considering 9/11, Iraq, and Katrina.

All I have to say is "Thank you President Bush. Thank you for those tax cuts. And, keep them coming."

[Thiebear]

It's all ditchdigger and McDonalds every month... nothing a White caucazoid would bother with... every single month....

[SkinsHokieFan]

Just an aside here

Talking with friends of mine who are graduating this year, nobody is having a difficult time finding a job

It isn't nearly the 1990s, however it is not 2001 or 2002 either, when the seniors I knew in those classes were begging for an internship

[brewdogmike]

It's all ditchdigger and McDonalds every month... nothing a White caucazoid would bother with... every single month....

Actually, only 33,000 of the new jobs were in food service, and construction employment was essentially unchanged (we're not in the prime building season yet). See http://stats.bls.gov/news.release/empsit.nr0.htm

Employment in professional and business services increased by 52,000 over the month. The gain was spread among most of the sector's component industries, including architectural and engineering services, computer systems design, man-agement and consulting services, and services to buildings and dwellings. Over the year, employment in professional and business services was up by 469,000.

Leisure and hospitality employment rose by 42,000 in March. Within theindustry, employment in food services and drinking places continued to grow, with a gain of 33,000 over the month. In March, retail trade employment in-creased by 29,000, with most of the growth occurring in general merchandise stores (26,000). Employment in wholesale trade continued its upward trend and has risen by 232,000 since its most recent low in August 2003.

Health care added 24,000 jobs in March; over the year, employment in the

industry has risen by 293,000. Over the month, job growth occurred in hos-

pitals (8,000) and in ambulatory health care services (16,000), which includes

doctors' offices and home health care.

Employment in financial activities rose over the month. Credit inter-

mediation and insurance carriers each added 7,000 jobs, following similar-

sized increases in February.

In the goods-producing sector, mining employment continued to expand in

March, rising by 6,000. Most of the gain occurred in support activities for

mining, particularly those related to oil and gas. Since its most recent low

in April 2003, mining employment has increased by 97,000.

Manufacturing employment was little changed in March; it has decreased by

56,000 over the year. Over the month, employment declines in textile mills

and in plastics and rubber products offset a gain in computer and electronic

products. Construction employment was essentially unchanged in March, but

the industry has added 311,000 jobs over the year.

[@DCGoldPants]

What about the middle aged folks who don't have the skills that your friends fresh from college (and who would accept much less $$ because they don't have a family support)? What should they do?

The economy isn't bad. But, good luck telling that to the people who are worried about losing their jobs, and not being able to afford braces for their teenaged kids.

[SkinsHokieFan]

What about the middle aged folks who don't have the skills that your friends fresh from college (and who would accept much less $$ because they don't have a family support)? What should they do?

The economy isn't bad. But, good luck telling that to the people who are worried about losing their jobs, and not being able to afford braces for their teenaged kids.

Someone needs to start up another UUNet so that middle aged people without skills can get jobs for 80k a year doing not a whole lot

That'll be the sign of a healthy economy won't it?

If you don't have the skils employers are looking for, GET THEM

And just to give you an idea of what some of my friends are making (it ain't peanuts, and for my sake ill put their initials, all graduates of VT 2004)

GA:120k (Financial Services, Beers and Cutler)

LR: 62k (Lifescienes and health, Microsoft)

RD:58k (Programmer, CGI)

PA: 56k (Consultant, Booze Allen and Hamilton)

PH:56k (Consultant, Accenutre)

AN:50k (Consultant, Accenture)

Just a little sampling of what we are getting coming out of school

The vast majority are making 40-50k

So its not peanuts, nor are we digging ditches or asking if you would like fries with that

[@DCGoldPants]

I agree that there should be training out there.

But my point is, that this is why the admin is having an impossible time getting that message out.

The people who have the jobs are less likely to vote anyways (being young)

[Redskins Diehard]

What about the middle aged folks who don't have the skills that your friends fresh from college (and who would accept much less $$ because they don't have a family support)? What should they do?

The people without the skills need to get them. My question is what role you think the government plays in this.

[@DCGoldPants]

I don't think education should be free, and provided by the Gov't.

But, I think there should be some sort of incentive program out there. Making part of continuing education tax deductable.....as much as possible. Giving even bigger incentives to companies who'll pay for their workers to go to school. So, then in turn, those companies cut deals with local schools and universities to for their folks, and the schools get some sort of incentive for cutting this deal. It helps the worker, the company, the school, and the country.

[SkinsHokieFan]

I don't think education should be free, and provided by the Gov't.

But, I think there should be some sort of incentive program out there. Making part of continuing education tax deductable.....as much as possible. Giving even bigger incentives to companies who'll pay for their workers to go to school. So, then in turn, those companies cut deals with local schools and universities to for their folks, and the schools get some sort of incentive for cutting this deal. It helps the worker, the company, the school, and the country.

I agree with you there. There are companies who have started to do this, for example Booze Allen and Hamilton has a program with Johns Hopkins, where professors come to BAH and teach masters classes, which is paid for by BAH

SAIC has the same program with GW. Its out there, its a matter of finding it

[@DCGoldPants]

I agree with you there. There are companies who have started to do this, for example Booze Allen and Hamilton has a program with Johns Hopkins, where professors come to BAH and teach masters classes, which is paid for by BAH

SAIC has the same program with GW. Its out there, its a matter of finding it

My company will pay for college courses that are connected to the industry (Business, Science, Technology, and even some English), once you complete the class with a passing grade. No special deal with local schools though.

[Winslowalrob]

Tight, a good economy is a good economy. And Hokie, we know you are rich, and all your friends are rich, stop rubbing it in!

[SkinsHokieFan]

Tight, a good economy is a good economy. And Hokie, we know you are rich, and all your friends are rich, stop rubbing it in!

Thats cuz we got skills

Naunchuck skills, breakdancing skillz :laugh:

[Air Force Cane]

"this is the worst economy since Herbert Hoover"

John F. Kerry, November 2004

"It's Bush's fault"

[Winslowalrob]

Thats cuz we got skills

Naunchuck skills, breakdancing skillz :laugh:

Bah, hell will freeze over twice before Tech has any decent breakdancers . Though some majors are easier to find jobs for, so I would hold off on announcing that the current economy is greatest thing since sliced bread based off your useless friends being able to find employment right out of college. Maybe we are in such dire straights that we are taking people not qualified for the job, such as anyone you associate with .

[SkinsHokieFan]

Bah, hell will freeze over twice before Tech has any decent breakdancers . Though some majors are easier to find jobs for, so I would hold off on announcing that the current economy is greatest thing since sliced bread based off your useless friends being able to find employment right out of college. Maybe we are in such dire straights that we are taking people not qualified for the job, such as anyone you associate with .

Definitley not the greatest thing since sliced bread. We are nowhere near the growth of jobs in the 1990s

However there is a reason that some majors are easier to find jobs for, that is because they have SKILLS that employers look for. I don't think many employers are looking for philosophy majors (and no offense to philosophy majors, I know it is hard as hell and lots of work, BUT its clear you'll have an easier time finding a job as an engineer or finance major)

[Winslowalrob]

Definitley not the greatest thing since sliced bread. We are nowhere near the growth of jobs in the 1990s

However there is a reason that some majors are easier to find jobs for, that is because they have SKILLS that employers look for. I don't think many employers are looking for philosophy majors (and no offense to philosophy majors, I know it is hard as hell and lots of work, BUT its clear you'll have an easier time finding a job as an engineer or finance major)

Indeed. Have you been eating your wheaties or something? You are making a hella lot of sense today!

[Barney B]

It IS progress, but, anecdotal evidence aside, real wages continue to fall.

Bureau of Labor Statistics

"Median weekly earnings of the nation's 103.5 million full-time wage and salary workers were $668 in the first quarter of 2006, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 2.3 percent higher than a year earlier, compared with a gain of 3.6 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period."

"We are ready for any unseen event that may or may not occur" - Al Gore

[chomerics]

It IS progress, but, anecdotal evidence aside, real wages continue to fall.

Bureau of Labor Statistics

"Median weekly earnings of the nation's 103.5 million full-time wage and salary workers were $668 in the first quarter of 2006, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 2.3 percent higher than a year earlier, compared with a gain of 3.6 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period."

That is the REAL reason this gets no play, it is because average Americans are losing ground, not gaining. When you slalary increases less then inflation, that is a problem. The 90's was the only time since Reagan took office that wages actually outpaced inflation, which is why people were gung ho about the economy.

People ignore statistics, they observe what happens to them and their friends directly. They see the mass layoffs, and the stripping of pensions, which effects them. Maybe the politicians would learn that the REAL crux of the issue isn't if you add more jobs, but if the people are actually gaining ground or losing ground against inflation. . .but I bet they will ignore the issue as they always have.

[heyholetsgogrant]

That is the REAL reason this gets no play, it is because average Americans are losing ground, not gaining. When you slalary increases less then inflation, that is a problem. The 90's was the only time since Reagan took office that wages actually outpaced inflation, which is why people were gung ho about the economy.

People ignore statistics, they observe what happens to them and their friends directly. They see the mass layoffs, and the stripping of pensions, which effects them. Maybe the politicians would learn that the REAL crux of the issue isn't if you add more jobs, but if the people are actually gaining ground or losing ground against inflation. . .but I bet they will ignore the issue as they always have.

Its almost like the welfare system in this country...any job is good job even if it pays $5.15 an hour....

-Grant

[Redskins Diehard]

That is the REAL reason this gets no play, it is because average Americans are losing ground, not gaining. When you slalary increases less then inflation, that is a problem. The 90's was the only time since Reagan took office that wages actually outpaced inflation, which is why people were gung ho about the economy.

People ignore statistics, they observe what happens to them and their friends directly. They see the mass layoffs, and the stripping of pensions, which effects them. Maybe the politicians would learn that the REAL crux of the issue isn't if you add more jobs, but if the people are actually gaining ground or losing ground against inflation. . .but I bet they will ignore the issue as they always have.

I'm glad I am not an "average" American and neither are my friends or family. I am personally leaving inflation in the dust working for the government. I guess my public school education wasn't too bad after all.

[GSF]

How can unemployment be so low with illegal immigrants stealing all of the jobs from Americans?

[SkinsHokieFan]

Its almost like the welfare system in this country...any job is good job even if it pays $5.15 an hour....

-Grant

How many jobs anywhere pay 5.15 an hour though?

Lets be honest, work study kids at VT get 6.50

I can't think of the last person I knew who was making 5.15 an hour

[Redskins Diehard]

It IS progress, but, anecdotal evidence aside, real wages continue to fall.

Serious question...then why does consumer confidence continue to rise? It seems to contradict the, "we are all worse off now" line of thinking.

[Barney B]

Serious question...then why does consumer confidence continue to rise? It seems to contradict the, "we are all worse off now" line of thinking.

Good question, complex answer.

First, I don't think anyone would say that we're all worse off, only that median wages are falling. Some people are better off, and some are much better off.

The Conference Board

The Consumer Confidence Index, though, is based on subjective criteria, and is affected by many factors, including:

1) Hard employment numbers. Employment is up, and most everyone who is newly employed feels like they're much better off than they were when unemployed. People who are newly layed off, OTOH, will say they're much worse off. Meanwhile, a long-term erosion of your earning power (in small increments) is a much more subtle thing for consumers to notice.

2) Energy prices (and while the cost of gasoline is up, that issue isn't expected to affect the CCI just yet, it could take a few months)

3) Housing costs and ownership numbers. Ownership numbers are up, and the housing boom has benefitted those people who already own homes.

4) Other assorted costs of living.

5) Whether the people who participated in the poll "got any" the night before.

Meanwhile, the Leading Index decreased a bit in March, and the CCI is expected to level off.

"Statistics show that teen preganancy drops off significantly after age 25." --Senator Mary Anne Tebedo