Text 14410, 132 rader
Skriven 2005-08-07 07:34:00 av THURSTON ACKERMAN (1:123/140)
     Kommentar till en text av JEFF BINKLEY
Ärende: Economy
===============
JB>More bad news for the democrats...  Bush said this would happen.
JB>=====================================

JB>http://biz.yahoo.com/ap/050805/economy.html?.v=19

JB>AP
JB>Employers Add Over 200,000 Jobs in July
JB>Friday August 5, 5:18 pm ET

JB>By Jeannine Aversa, AP Economics Writer
JB>Employers Add More Than 200,000 Jobw in July, Most Since April;
JB>Unemployment Remains 5 Percent


JB>WASHINGTON (AP) -- U.S. employers cranked up their hiring in July,
JB>adding more than 200,000 jobs in a summertime show of confidence in the
JB>economy's staying power. The unemployment rate held steady at 5 percent.



JB>The report released by the Labor Department on Friday raised hopes that
JB>job opportunities will continue to expand in the months ahead.

JB>The 207,000 increase in payroll jobs last month -- the most since April
JB>- reflected hiring across a range of industries. Retailing, health care,
JB>financial activities and construction all expanded employment. But
JB>factories shed jobs for the second month in a row.

JB>"Once skittish businesses are turning into confident businesses that are
JB>willing and able to hire," said Mark Zandi, chief economist at
JB>Economy.com. "I think the job market will improve further in the course
JB>of the coming year."

JB>As the labor market gained traction, workers' wages also went up.

JB>Employees' average hourly earnings rose to $16.13 in July. That was 0.4
JB>percent more than the $16.07 in June. The increase was the most in a
JB>year. Average weekly earnings climbed to $543.58 in July, up from
JB>$541.56 in June.

JB>While wage growth is good for workers, the increase was worrisome to
JB>investors and some economists who fret about inflation pressures picking
JB>up.

JB>On Wall Street, the Dow Jones industrials lost 52.07 points to close at
JB>10,558.03.

JB>To keep inflation in check, the Federal Reserve is expected to raise
JB>short-term interest rates by one-quarter of a percentage point when it
JB>meets Tuesday. It would be the 10th such increase since the central bank
JB>began tightening credit in June 2004.

JB>Fed Chairman Alan Greenspan has said the central bank would keep close
JB>watch for signs of inflation, especially any from the compensation
JB>front.

JB>Analysts pointed to the growth in jobs and in earnings as raising the
JB>odds that the Fed will extend its credit-tightening campaign well into
JB>2006 to thwart inflation. If wages keep on rising at the pace seen in
JB>July, the Fed might opt for a bolder, half-point rate increase later
JB>this year, some economists said.

JB>"What needs to be watched is the wage situation," said Joel Naroff of
JB>Naroff Economic Advisors. "Was the jump in wages a one-shot wonder or
JB>does it portend accelerating labor costs? That is the unknown right
JB>now."

JB>On a positive side, analysts said the pickup in wages should help
JB>support consumer spending, the economy's lifeblood, in the months ahead.

JB>On the payroll front, employers added 42,000 more jobs in May and June
JB>combined than the government previously thought -- figures that
JB>heartened economists.

JB>So far this year, the economy is adding an average of 191,000 jobs a
JB>month. That is better than the average of 183,000 a month registered
JB>last year.

JB>The payroll performance in July exceeded economists' expectations. They
JB>were predicting a gain of 180,000 positions and expected the jobless
JB>rate to hold steady at 5 percent, close to a four year low.

JB>The labor market is the one part of the economy that has had difficulty
JB>getting back to full health after the 2001 recession. Rather than ramp
JB>up hiring, companies had relied largely on squeezing more productivity
JB>out of existing workers to meet customers' demand.

JB>During President Bush's first term, the economy created just 119,000 net
JB>new jobs. So far in his second term, the economy already has created
JB>more than 10 times that number.

JB>"Now companies are convinced that the expansion is getting stronger and
JB>is sustainable and they are increasing hiring to meet expected demand,"
JB>said Anthony Chan, senior economist at JP Morgan Asset Management.

JB>The economy grew at a 3.4 percent pace in the second quarter and is
JB>expected to clock in at a 4 percent pace or higher in the July-to-
JB>September period.

JB>"The economy has finally transitioned to another phase, a phase where
JB>the combination of sustained economic growth along with stronger
JB>business confidence will produce a steady creation of 200,000 positions
JB>per month," predicted Ken Mayland, president of ClearView Economics.

JB>The Bush administration pointed to the employment report as evidence the
JB>economy is on a healthy growth path. But Democrats questioned whether
JB>hiring gains will be sustained and said the labor market climate can
JB>still be tough for some people.

JB>The report showed that the average time that the 7.5 million unemployed
JB>spent searching for work in July was 17.6 weeks, up from 17.1 weeks in
JB>June.

JB>Surging energy prices, meanwhile, also can strain pocketbooks. Oil
JB>prices climbed to a new closing high of $62.31 a barrel on Friday.

And in "Liberal Massachsuetts" our tax incomes have risen to
the point where we will reduce our in-come tax to 5% per year;
AND  August 12 and 13 , 2005 you will not pay state sale tax
on your purchases up to $2,500.00 (and many reatailers are
adverizeing they  will absorb it over that level 8-)

We are inporting some cool, dry Canadian air, so COME Over or
Up or Down (whatever the case maybe !-) and enjoy a lobster
or baked beans (which ever suits your fancy 8-)
You might even meet the next President of these United States!

Stay young, OldAck.

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