1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

  2. ROCKETS GAMEDAY
    Alperen Şengün is back! Come watch ŞenHub dish to Jabari and Tari as the Rockets play the Thunder tonight -- Clutch hosts pregame at 6:30pm CT!

    LIVE! Rockets vs. Thunder

Economy Adds 288,000 jobs in April

Discussion in 'BBS Hangout: Debate & Discussion' started by JPM0016, May 7, 2004.

  1. JPM0016

    JPM0016 Contributing Member

    Joined:
    May 23, 2003
    Messages:
    4,465
    Likes Received:
    37
    Lets hope this continues. March's numbers were revised to 337,000, hopefully the uptick contiues.

    http://story.news.yahoo.com/news?tm...07/ap_on_bi_go_ec_fi/economy&cid=668&ncid=716

    Companies Add 288,000 Jobs to Payrolls

    2 minutes ago

    By LEIGH STROPE, AP Labor Writer

    WASHINGTON - Employers added 288,000 jobs to their payrolls in April as the nation's unemployment rate slipped to 5.6 percent, reinforcing hopes for a sustained turnaround in the jobs market that had lagged for so long.

    Payrolls have risen now for eight straight months, with 867,000 new jobs created so far this year, the Labor Department (news - web sites) reported Friday. The strengthening jobs market comes just in time to aid President Bush (news - web sites)'s re-election efforts, which were in question a few months ago based on his economic record.


    Bush is on track to be the first president since the Great Depression to have lost jobs under his watch. But the spate of hiring gains in recent months have shrank those losses to about 1.5 million.


    Hiring was widespread last month, with the service sector leading the way. Professional and business services employment rose substantially, by 123,000. In that category, gains were in employment services, including temporary help firms, services to buildings and dwellings, management and technical consulting services and architectural and engineering services.
     
  2. GreenVegan76

    GreenVegan76 Contributing Member

    Joined:
    May 14, 2003
    Messages:
    3,336
    Likes Received:
    1
    Great news. Hopefully, things are turning around.
     
  3. FranchiseBlade

    FranchiseBlade Contributing Member
    Supporting Member

    Joined:
    Jan 14, 2002
    Messages:
    46,751
    Likes Received:
    15,045
    This is excellent. I hope more and more of the unemployed get some new jobs, and that they are jobs that pay a decent wage.
     
  4. Dubious

    Dubious Contributing Member

    Joined:
    Jun 18, 2001
    Messages:
    18,308
    Likes Received:
    5,061
    Hmmm? Who do those guys putting the statistic together work for? They wouldn't do anything to make the report look more favorable would they? Something like removing the hard core unemployed (those that have given up looking) from the number so it shows a net gain instead of a loss.

    Nah.
     
  5. GreenVegan76

    GreenVegan76 Contributing Member

    Joined:
    May 14, 2003
    Messages:
    3,336
    Likes Received:
    1
    Yeah, politicians shamelessly manipulate definitions and statistics (especially in employment figures -- the real unemployment number is close to 20 million), but I'll take any good news right now.
     
  6. DCkid

    DCkid Contributing Member

    Joined:
    Oct 15, 2001
    Messages:
    9,335
    Likes Received:
    2,153
    I'm curious. How exactly do they determine the number of unmeployed who have given up looking?
     
  7. ROXRAN

    ROXRAN Contributing Member

    Joined:
    Oct 12, 2000
    Messages:
    16,409
    Likes Received:
    2,833
    More good news to the chagrin of the political wayward left...
     
  8. SamFisher

    SamFisher Virtuous

    Joined:
    Apr 14, 2003
    Messages:
    55,623
    Likes Received:
    31,289
    I think they just ask, it's a survey like any other.
     
  9. SamFisher

    SamFisher Virtuous

    Joined:
    Apr 14, 2003
    Messages:
    55,623
    Likes Received:
    31,289
    Spoken like a true Trader_Jorge groupie.

    Congrats.
     
  10. Rocketman95

    Rocketman95 Hangout Boy

    Joined:
    Feb 15, 1999
    Messages:
    48,936
    Likes Received:
    1,348
    Yeah, GreenVegan76, FranchiseBlade have shown much chagrin in this thread. :rolleyes:
     
  11. JPM0016

    JPM0016 Contributing Member

    Joined:
    May 23, 2003
    Messages:
    4,465
    Likes Received:
    37
    a little more detailed article

    http://money.cnn.com/2004/05/07/news/economy/jobless/index.htm?cnn=yes

    Job growth rocks again

    Payroll growth of 288,000 comes in well above forecasts; unemployment dips to 5.6 percent.
    May 7, 2004: 12:28 PM EDT
    By Chris Isidore, CNN/Money senior writer

    NEW YORK (CNN/Money) - Employers added jobs at a surprisingly rapid clip for the second straight month in April and the unemployment rate fell, a government report showed Friday, as the nation's labor market finally showed signs of sustained improvement.


    While good news for people looking for jobs, the report also makes it much more likely that the Federal Reserve will start raising interest rates sooner rather than later -- which raised some worries on Wall Street.

    Payrolls grew by 288,000 jobs last month, the Labor Department reported, well above the 173,000 economists had forecast, according to a survey by Reuters. The number even topped the highest forecasts of about 250,000.

    The department also revised its reading on March job growth to 337,000 jobs from the 308,000 reported last month. That gave the economy an average monthly gain of 217,000 a month so far this year, even with weaker-than-expected growth in January and February.

    The unemployment rate eased to 5.6 percent from 5.7 percent in March.

    After the economy lost 2.7 million jobs from the start of 2001 until August 2003 -- well after the recession ended -- payrolls have now grown for eight straight months, adding 1.1 million jobs.

    Even the manufacturing sector added 21,000 jobs last month after shedding jobs for 42 straight months -- until a revision showed a gain in the sector each of the last three months.

    Construction added 18,000 jobs and retail added 23,000 jobs, while the business and professional services gained 123,000.

    The strength of the jobs report was trumpeted by Labor Secretary Elaine Chao.

    "This has been an across-the-board gain," said Chao appearing on CNNfn's Market Call. "All that (data) bodes for increased hiring."

    But Gene Sperling, economic adviser to Democratic presidential candidate John Kerry, said that the strong April report did not make up for job losses earlier in the Bush administration.

    "We're in a very deep hole on job market," Sperling said on the same program. "We've had a couple of steps in the right direction, but we have a lot farther to dig ourselves out."

    Still, economists said there definitive signs of strength in the report.

    Average hourly wages posted a relatively strong 0.3 percent gain, climbing 5 cents to $15.59 -- the biggest increase since a 6-cent gain last July. Average hours work remained unchanged, but that could also be a sign of renewed strength in the labor market.

    "Businesses have regained confidence in the sustainability of this economic expansion and have started to hire people in earnest," wrote Sung Won Sohn, chief economic offficer of Wells Fargo banks. "Employers are trying to boost employment by adding more workers, not more hours per worker."

    On Wall Street, stocks were mixed but Treasurybond prices sank after the report as investors bet higher rates were now a foregone conclusion. The yield on the 10-year Treasury jumped to 4.75 percent from 4.60 percent late Thursday. Bond prices and yields move in opposite directions.

    John Silvia, chief economist at Wachovia Securities, said he was surprised to see stock investors trying to find positive news in the numbers, rather than focusing just on the risks that accompany higher rates.

    "They're looking at the growth in the economy and the earnings. They've bought into the fact the economy is growing," he said.

    Investors were betting that it is now virtually certain that the Fed will raise its target for a key short-term rate when the central bank's policy-makers meet in June, rather than waiting for August or September.

    Traders at the Chicago Board of Trade Friday were betting on a 90 percent chance the Fed would raise the fed-funds rate a quarter point in June, up from a 56 percent chance Thursday and a 42 percent chance on Tuesday immediately after the Fed meeting.


    But several economists cautioned that the Fed will weigh more economic data -- particuarly on inflation -- before starting to raise the fed funds rate. The overnight bank lending rate stands at 1 percent, the lowest in more than 40 years.

    While the March employment report had started to raise expectations for a Fed rate hike, some analysts thought the number was a fluke.

    "The two months of favorable data allow us to start connecting the dots," said Anthony Chan, chief economist for Banc One Investment Advisors. "It gives us a picture of a rapidly improving labor market. I think we can categorically say we have seen a sea change in labor market environment at this time."

    Chan said it's too soon to suggest that a Fed rate hike at the June meeting is certain. He said central bank policy-makers will look at information beyond the headline job creation number.

    Economists said that upcoming reports on retail and wholesale prices are more important that the employment reports for the Fed, which is mandated to control inflation and keep the economy growing.

    "Next week's producer price index or consumer price index could tip the Fed in favor of a June hike if they're on the upside," said Chan.
     
  12. GreenVegan76

    GreenVegan76 Contributing Member

    Joined:
    May 14, 2003
    Messages:
    3,336
    Likes Received:
    1
    Instead of looking at news occurrences for what they are, I've found that most of us respond to news based on how we think others will respond. We don't react to the news -- we react to the reaction of the news.
     
  13. ima_drummer2k

    ima_drummer2k Contributing Member

    Joined:
    Oct 18, 2002
    Messages:
    35,020
    Likes Received:
    6,249
    See, I knew you were going to say that!
     
  14. ZRB

    ZRB Contributing Member

    Joined:
    Jul 31, 2000
    Messages:
    6,818
    Likes Received:
    4
    Must be jobs in the advertising department of the Bush campaign.
     
  15. ZRB

    ZRB Contributing Member

    Joined:
    Jul 31, 2000
    Messages:
    6,818
    Likes Received:
    4
    Well, that's my first double post.
     
  16. insane man

    insane man Member

    Joined:
    Aug 9, 2003
    Messages:
    2,892
    Likes Received:
    5
    i have a macro final tomorrow morning...and of course im not studying but reading this topic made me pick up the book and post this.

    every month the BLS produces data on unemployment and on other aspects of the labor market, such as types of employment, length of the average workweek, and the duration of unemployment. these data come from a regular survey of about 60,000 households, called the current population survey.

    based on the answer to the survey question, the BLS places each adult (aged 16 and older) in each surveyed household into one of three categories a) employed b) unemployed c) not in the labor force. a person is ocnsidered employed if he or she spent some of the previous week working at apaid job. a person is unemployed if he or she is on temporary layoff or islooking for a job. a person who fits netiher of the first two categories such as a full time studnet a homemaker or a retiree is not in the labor force.


    interestingly this book is written by mankiw. he's on the economic team of the president...and isthe one that said outsourcing to india is better for the economy inthe long run or something and got in hot water.
     
  17. dc sports

    dc sports Member

    Joined:
    Feb 9, 2000
    Messages:
    1,854
    Likes Received:
    2
    These statistics are a burecratic function, and the executive branch, as a general rule, won't interfere. An attempt to manipulate the results would be picked up on pretty quickly by the opposing party.

    The number of people searching for work does not affect the number of jobs added.

    The deffinition of the unemployment figure is the percentage of people seeking work, who aren't employed. People who have "given up looking for work" have always been, and should be removed to keep the statistic valid over time. People leave the job market for many reasons in a down economy -- early retirement, go back to school until the market gets better, etc., reasons which shouldn't "count against" the statistic. Those that are merely discouraged are probably still counted.

    If you want to attack the statistic, you should point out that it does not include those who are underemployed -- people who are employed in a position that is below their skillset -- the chemical engineer employeed at McDonalds or the rocket scientist employeed as a teacher -- not by choice, but because they needed any job to make the ends meet.

    Still, unemployment at 5.7 percent isn't catastophic. The natural rate of unemployment is around 4.5-5.0 percent. It's actually harmful to the economy for unemployment to get below this level. The rate should be better -- and it wil get there. But it's not unexpected to see these types of numbers coming out of a recession.

    The only reason the job statistics (especially with the positive job growth) for cries of doom and gloom is that it is an election year.
     
  18. Woofer

    Woofer Contributing Member

    Joined:
    Oct 10, 2000
    Messages:
    3,995
    Likes Received:
    1
    Those that are discouraged are not counted.


    http://www.tnr.com/blog/campaignjournal?pid=1657

    AT LEAST OHIO'S NOT A SWING STATE: It's never good for a president when this happens. From today's gaggle with Scott McLellan aboard Air Force One:


    Q About a year ago, April 24th, last year, the President went to Canton, Ohio. He went to the Timken Company. I don't know if you remember the trip, I wasn't on it. He went to a bearings factory, part of the Timken Company, touted his economic plans and talked about jobs and growth. Timken announced today that they're shutting down that plant that the President visited a year ago. I just wonder if that's ironic, that the President touted his economic strategy, doesn't appear to be working?
     
  19. ima_drummer2k

    ima_drummer2k Contributing Member

    Joined:
    Oct 18, 2002
    Messages:
    35,020
    Likes Received:
    6,249
    Yeah, I guess that one plant shutting down proves that the economy isn't getting better at all.
     
  20. Woofer

    Woofer Contributing Member

    Joined:
    Oct 10, 2000
    Messages:
    3,995
    Likes Received:
    1
    Didn't say that, it was just an ironic and sad twist for those Bush supporters.

    Still waiting for my 401K to turn around, though...
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now