BLS DAILY REPORT, FRIDAY, MAY 9, 1997 RELEASED TODAY: In October through December of 1996, there were 1,802 mass layoff actions by employers, resulting in the separation of 397,643 workers from their jobs for more than 30 days. (Preliminary figures may not include all states.) A year earlier, employers reported that they had laid off 320,750 workers in 1,716 extended layoff events .... Print media headlined Alan Greenspan's remarks at an awards dinner in New York differently_____The Washington Post (page G1) said the Fed chairman hinted that the Fed will let interest rates stand when its policymakers meet May 20 if the very rapid pace of economic growth early this year slows as he expects ...."There is scant evidence of any imminent resurgence of inflation at the moment," Greenspan said. But with unemployment now below 5 percent, "there also appears to be little slack in our capacity to produce. Should the expected slowing in growth or demand fail to materialize, we would need to address any emerging pressures in product and credit markets" ....Several indications of slower growth include flat retail sales in March and probably last month as well, smaller increases in payroll employment in the past two months compared with earlier months, a decline in total hours worked last month, and a very large increase in businesses' stocks of unsold goods in the first quarter ...._____The Wall Street Journal (page A2) and USA Today (page 1B) say "Greenspan is ready to increase rates if the growth in demand doesn't slow" and "Greenspan hints at new rate increase," respectively_____The New York Times (page C1) has the headline, "Greenspan Defends Fed's Rate Policy." Clearly stung by widespread criticism that the Federal Reserve had been too quick to raise interest rates six weeks ago," Greenspan said that "failure to act would have constituted `a threat to the job security and standards of living of too many Americans.' Addressing head-on the argument that the Federal Reserve had put the brakes on the economy without clear evidence of accelerating inflation, Mr. Greenspan offered what for him was an unusually direct rebuttal, saying the quarter-point rate increase on March 25 had been a carefully calibrated form of insurance for an economy that has been growing steadily for more than six years. New claims filed for state unemployment insurance benefits remained steady at a seasonally adjusted 347,000 during the week ended May 3, the Labor Department says ....But it still hovered at the second highest level this year ....(Daily Labor Report, page D-1; Washington Post, page G8; New York Times, page C13; Wall Street Journal, page A1). April showers washed out sales at many of the nation's largest stores last month as cold and rainy weather in many parts of the country discouraged shoppers from buying spring merchandise ....April's sales figures were also held down by the absence of Easter sales, as Easter arrived in March this year. For many stores, sales have been lagging for the past year. Despite high levels of consumer confidence, many shoppers are still watching their spending and placing value above all else ....(AP story, Washington Post, page G3; New York Times, page C4). In an article headlined "Stocks Rebound, but Investors Are Reported to Be Nervous," Mickey Levy, economist at NationsBank Capital Markets, is quoted as saying, "Everybody's looking for every nuance. Bozo the Clown could come out and say something these days and move the market" (Washington Post, page G2).
