BLS DAILY REPORT, MONDAY, JANUARY 31, 2000
RELEASED TODAY: The total number of persons who worked at some point during
the year increased by about 1.6 million in 1998 to 144.8 million, according
to the annual survey of work experience. The number who experienced some
unemployment continued to decline -- down almost 1.6 million from the
previous year, to 14.0 million. ...
__The U.S. economy closed out 1999 with growth at a torrid pace of 5.8
percent as consumers continued their long spending spree amid some signs of
increased inflationary pressures, the Commerce Department reported. For
1999 as a whole, the economy grew 4 percent, down slightly from 4.3 percent
in 1998 and 4.5 percent in 1997. The economy hasn't expended that much over
a three-year period since the recovery that followed the deep 1981-82
recession. ... Meanwhile, BLS said its employment cost index rose 1.1
percent in the September-to-December period. The ECI rise also was greater
than expected and added to concerns about the possibility that inflation may
accelerate. ... Wages and salaries rose 0.9 percent during the fourth
quarter, the same as in the prior three months. But employers' cost of
providing benefits such as vacations, health insurance, and pensions
unexpectedly increased 1.3 percent, compared with 0.8 percent in the third
quarter. However, the ECI still was up only 3.4 percent in the year ended
in December, the same increase as in 1998, and some analysts suggested that
strong productivity growth would continue to hold down the cost of labor
required to produce a particular good or service. ... (John M. Berry in
Washington Post, Jan. 29, page A1).
__The American economy grew at a blistering rate in the final quarter of
last year as it closed in on the record for the longest expansion in United
States history. But inflation also jumped and this, along with more
evidence of accelerating health costs, makes it more certain that the Fed
will raise short-term interest rates when it meets. ... Economists also
cited the ECI, which showed that, while wages and salaries for civilian
workers rose the same in the autumn as in the summer, the cost of fringe
benefits accelerated. ... (Robert D. Hershey Jr. in New York Times, Jan.
29, page B1).
When the town shuts down for snow, some people stand to lose, says Peter
Behr in the Washington Post ("Washington Business" section, page 14). The
real losers are hourly workers and temporary employees who get paid only
when they work. For them, last Tuesday was an unplanned, unpaid holiday.
Some of the Washington region's employers treated hourly and salaried
workers the same. ... Many employers don't do that, however, labor analysts
say. ... There's no way to pin down how many workers lost pay last week,
but here are some rough guides. About 1 in every 10 workers holds a
temporary job, does "on call" work, or has something other than a full-time
position with an employer. ... Hourly workers, who make up 54 percent of
the work force, also are more likely to lose out than salaried workers (38
percent) when weather shuts down businesses. In this area, 663,000 workers
were paid less than $21,000 in 1997, according to a BLS survey. Typically
such workers would receive hourly wages, labor analysts say. ...
A new survey finds that almost one-fifth of employees -- nearly 19 percent
-- were eligible for stock options in 1999, a 7 percent increase from 1998.
Of the 19 percent, more than 75 percent actually received grants, according
to the survey by the global consulting firm Watson Wyatt Worldwide. The
survey was based on responses from 1,352 employers. ... (Daily Labor
Report, Jan. 26, page A-5).
Saying that the United States has a skills shortage, not a worker shortage,
Secretary of Labor Herman announces DOL's plan to hold the first national
skills summit in April. The skills summit will deal directly with the
skills shortages in U.S. communities. It will bring together leaders in the
business community, labor, and government. ... (Daily Labor Report, Jan.
28, page A-5).
President Clinton nominated Edward B. Montgomery, assistant secretary of
labor for policy, to serve as deputy secretary of labor . Montgomery has
worn a number of hats at the department since signing on as chief economist
in early 1997. He left that post to serve as senior advisor to Secretary
Herman and, in May 1999, became acting deputy. ... Montgomery was an
economics professor at the University of Maryland. ... He received a
bachelor's degree from Pennsylvania State College and A.M. and Ph.D. degrees
in economics from Harvard University (Daily Labor Report, Jan. 28, page
A-9).
DUE OUT TOMORROW: Mass Layoffs in November 1999
application/ms-tnef
