[PEN-L:105] BLS Daily Report

[Richardson_D]

This message is in MIME format. Since your mail reader does not understand
this format, some or all of this message may not be legible.

------ =_NextPart_000_01BDA5BD.A03101C0

BLS DAILY REPORT, WEDNESDAY, JULY 1, 1998

RELEASED TODAY:  In May, 203 metropolitan areas recorded unemployment
rates below the U.S. average (4.2 percent, not seasonally adjusted),
while 116 areas had higher rates.  Of the 19 metropolitan areas with
rates below 2.0 percent, 14 were located in the Midwest and 5 were in
the South.  Nearly two-thirds of the 20 areas with the highest rates
were in the West, with 10 of these in California....  

Consumer confidence strengthened in June, after a slight drop in May,
rising to its highest level in nearly three decades, the Conference
Board reports....  (Daily Report, page A-1)_____Consumer confidence in
the economy rose to a 29-year high, as Americans remained optimistic
that the strong labor market and healthy economic growth will
continue....  (New York Times, page D2)_____Consumer confidence showed
that Asia's economic gloom hasn't clouded Americans' optimism....  (Wall
Street Journal, page A2).

The strength of the economy continued to surprise economists during the
first half of the year, but Asia's financial woes, a rollback in
inventory investment, and the strike at General Motors finally will cool
the red hot pace of U.S. output.  And that means the inflation-wary
Federal Reserve, despite some signs of rising labor costs, is likely to
keep monetary policy on hold for the balance of the year.  That is the
consensus prediction of 21 economists polled by BNA.  Most forecasters
say they were caught off guard by the vibrancy of economic activity
during the early months of 1998, particularly the startling pace of
inventory investment and consumer spending....  But other parts of the
economy also stunned analysts, including still low inflation and
unemployment rates....  (Daily Labor Report, page D-1).

Economists agree that the increased globalization of the economy since
1979 has contributed to the growing wage inequality in America.  They
disagree, however, on how much globalization has contributed to the
widening gap between the highest- and lowest-paid wage earners.  At a
Brookings Institution panel discussion, Robert Z. Lawrence, a professor
at the Kennedy School of Government at Harvard University, said
globalization contributed "at most" between 10 percent and 15 percent to
the growth of inequality.  But Lawrence Mishel, research director at the
Employment Policy Foundation, said globalization is a much larger factor
in wage disparity.  Both economists and other Brookings' panelists
agreed wage disparity has been increasing.  This trend has been
consistent since 1979, except for the last few years when a booming
economy and low unemployment has somewhat ameliorated wage
inequality....  (Daily Labor Report, page A-7).

Small businesses pay lower wages, offer fewer benefits, and provide less
job security than their larger counterparts, according to a new report
by the Economic Policy Institute, which recommends that labor laws be
extended to companies employing fewer than 50 workers.  Contrary to the
popular belief that small businesses are the economic engine of the
nation, the report said they do no create any more jobs for their size
than large firms, and their employees often are underpaid and
overworked....  A spokesman for the National Federation of Independent
Business questioned the report's findings, arguing that small businesses
pay only slightly lower wages than large companies and provide jobs to
workers who might otherwise by unemployed....  (Daily Labor Report, page
A-7).

DUE OUT TOMORROW:  The Employment Situation: June 1998  


------ =_NextPart_000_01BDA5BD.A03101C0
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------ =_NextPart_000_01BDA5BD.A03101C0--