Text 24376, 128 rader
Skriven 2006-11-03 08:43:00 av Jeff Binkley (1:226/600)
Ärende: Economy
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More bad news for the democrats....   They'll have everyone in their
caste believing that 4.4% unemployment is bad.  Go look at the unemployment
numbers under The Clinton...

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http://www.bloomberg.com/apps/news?pid=20601087&sid=a13BNQ_tle1c&refer=home

October U.S. Payrolls Rise 92,000; Jobless Rate Falls to 4.4%

By Joe Richter

Nov. 3 (Bloomberg) -- Employers in the U.S. added 92,000 jobs in October, and
payroll growth in prior months was revised higher for the second time in a row,
pushing the unemployment rate down to a five-year low.

Last month's gain in employment followed increases of 148,000 in September and
230,000 in August, both higher than previously reported, the Labor Department
said today in Washington. The jobless rate fell to 4.4 percent from 4.6 percent
the previous month.

The revisions for the prior two months added 139,000 jobs to payroll growth,
and come after the government in October said the economy gained 810,000 more
jobs than previously estimated in the year ended in March. Increased job growth
will fuel wage gains, keeping consumers spending and providing a lift for an
economy that faltered last quarter, economists said.

``Companies are still hiring, which tells us that the economy came through a
couple quarters of sub-par growth without having the weakness feed on itself,''
Robert Mellman, an economist at JPMorgan Chase & Co. in New York, said before
the report. ``The outlook for consumer spending is still quite good.''

Economists had expected payrolls to rise by 123,000 last month after a
previously reported increase of 51,000 in September, according to the median of
73 estimates in a Bloomberg survey. Estimates ranged from increases of 72,000
to 180,000. Economists also projected a 4.6 percent jobless rate.

Campaign Issue

President George W. Bush is campaigning ahead of next week's midterm elections
by telling voters that Republicans will do a better job protecting America, and
that Republican economic policies, especially $1.85 trillion in tax cuts, have
made the economy strong.

Bush said in a Nov. 1 interview that pessimism over the course of the Iraq war
``overshadows'' and affects voters' perceptions of other issues, including the
economy.

Employment in service-producing industries, which include retailers, banks and
government agencies, rose 152,000 last month after increasing 154,000 in
September, today's report showed.

Manufacturers shed 39,000 jobs last month, the biggest drop since July 2003,
after cutting 12,000 jobs in September. The manufacturing workweek rose to 41.2
hours from 41.1 in September and overtime held at 4.3 hours.

Construction Jobs

Builders shed 26,000 jobs, the most since February 2003, after adding 5,000
jobs in the prior month. Falling home sales are prompting homebuilders to
reduce projects and hire fewer workers.

The economy stumbled in the third quarter primarily because of the biggest
decrease in home construction in 15 years, the government reported on Oct. 27.
Gross domestic product increased at an annual rate of 1.6 percent from July
through September, the slowest in more than three years.

The average work week rose to 33.9 hours from 33.8. Economists expected hours
to remain unchanged.

Workers' average hourly earnings rose 0.4 percent, or 6 cents, after increasing
0.2 percent the previous month. Economists expected a 0.3 percent increase in
hourly wages. Earnings were up 3.9 percent from October 2005.

Average weekly earnings rose to $573.25 last month from $569.53 in September.

``I think labor market conditions will remain pretty firm,'' Federal Reserve
Bank of Richmond Jeffrey Lacker said in a speech this week in Baltimore. ``Even
if they ease a bit, they would have to ease a lot to throw a monkey wrench into
consumer spending growth and that doesn't seem likely to me.''

Fed Action

The Fed held its benchmark overnight lending rate steady for a third straight
month in October. Central bankers said that while ``some inflation risks
remain,'' a slowing economy will probably cause price pressures to ``moderate
over time.''

Consumers will begin the holiday season with more cash in their pockets,
anchoring forecasts for improved economic growth in the fourth quarter.
Consumers may spend 6.5 percent more during the holidays than a year earlier,
accounting firm Ernst & Young LLP said. The season accounts for a fifth of
sales at retailers such as Wal-Mart Stores Inc. and Federated Department Stores
Inc. and is the most profitable period for most stores.

Because fewer people are entering the labor force than in years past, smaller
payroll gains are needed to keep the unemployment rate steady, economists said.
That number is now about 130,000 per month, Fed Chairman Ben S. Bernanke said
in testimony to Congress in July.

``Labor force growth isn't going to be as strong as it has been,'' the Fed's
Lacker said.

Filings for unemployment benefits this month were little changed from
September, suggesting companies are holding on to workers. The number of
Americans filing first-time claims for jobless benefits in October has averaged
about 311,000, down from 314,000 in September and 332,000 for all of last year.


Job cuts announced by U.S. employers fell 15 percent in October from a year
earlier, a private survey from Challenger, Gray & Christmas Inc., a
Chicago-based placement firm, showed yesterday.

Goodyear Tire & Rubber Co., the largest U.S. tiremaker, plans to close a Tyler,
Texas, plant, eliminating 1,100 jobs. The factory is one of 16 North American
plants where United Steelworkers union members have been on strike since Oct.
5.

Ford Motor Co., after posting its biggest quarterly loss in 14 years, yesterday
said it will reduce expenses for U.S. salaried workers by abolishing merit-pay
raises and trimming healthcare contributions. Ford already plans to cut 10,000
salaried jobs in North America by the end of the first quarter.

To contact the reporter on this story: Joe Richter in Washington
Jrichter1@bloomberg.net

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