BLS DAILY REPORT, THURSDAY, MARCH 9, 2000
In virtually every region of the country, the economic expansion remained
vigorous at the beginning of 2000, even as worker shortages demanded
creative solutions of many employers, according to the Federal Reserve's
latest "beige book" released March 8. Wage pressures accelerated in some
industries--notably retail--but in other sectors pay gains remained
moderate, the Fed's economist from across the nation said. Higher interest
rates continued to dampen demand in some areas for auto and mortgage loans.
Yet, housing sales and commercial construction remained brisk in many parts
of the country. ...(Daily Labor Report, page D-1)
___Economic growth was strong last month throughout most of the country, and
even where it wasn't, the economy continued to operate at high levels,
according to the Federal Reserve's latest survey of nationwide conditions.
Retail sales were up significantly, gains in manufacturing were widespread,
and demand for services by both consumers and businesses rose substantially,
the summary said. Real estate markets and construction were at high levels,
"although slight cooling was evident in some areas" it added. With little
evidence from the survey or other data that growth has slowed-despite four
interest-rate increases since last June--the Fed is expected to raise rates
again at a March 21 policy making meeting. The Fed wants slower growth to
make sure inflation remains under control. ...(Washington Post, page E2)
The pickup in the economy has made hiring increasingly difficult. "Reports
of recruitment obstacles were widespread," the Fed said. "Labor markets
were very tight in most areas." As a result companies have been forced to
raise wages for new employees, which suggests that the low unemployment rate
could drive up business costs. The effect of rising labor costs on consumer
prices has been restrained, the Fed said. " Despite faster wage growth for
some workers, increases in the prices of final goods and services were
limited over all" the report said. ...(The New York Times, page C4)
Federal Reserve Chairman Alan Greenspan told bankers during a speech in
Texas that he was worried about a "troubling trend" in which institutions no
longer viewed the economic boom as "extraordinary and exceptional, but
rather as ordinary and expected". If such an attitude dictates lending
decisions, Greenspan said, it could have "grave consequences" for the
industry's ability to weather an economic downturn. ... ( USA Today, page B)
Inflation remains lethargic despite the economy's quickening pace. At the
same time it found that rising prices for energy products and other
industrial commodities squeezed many companies' profit margins, and that
despite an extremely tight labor market, "increases in the prices of final
goods and services were limited overall". ... ( The Wall Street Journal,
page A2)
A poll of working women by the AFL-CIO, the nation's largest working women's
group with more than 5 million members - shows that 46 percent of all women
who are married or living with someone work a different schedule than their
partners. More than half of the married women with young children - 51
percent - work different hours than their husbands. The survey shows that
one of four working women work at least part of their hours in the evening
or on the weekend. This is especially true of women who work in low wage
jobs with annual incomes of less than $25,000. Twenty six percent of women
with children under age 18 also worked evening or weekend hours, according
to the survey. By contrast, the survey showed that 69 percent of the women
surveyed said they were not worried about the possibility that an economic
downturn would effect their jobs over the next few years. The optimism was
greatest among white women (78 percent), college educated women (78 percent)
and women with incomes over $60,000. Only 12 percent of the women surveyed
earned more than $60,000 a year and nearly half were in the $10,000 to
$40,000 a year income bracket. ...(The Washington Post, Business &
Technology, http://washingtonpost.com)
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