[PEN-L:804] BLS Daily Report

[Richardson_D]

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BLS DAILY REPORT, FRIDAY, OCTOBER 30, 1998

__Private industry wages rose 4.3 percent in the year ended in
September, and compensation costs rose 3.8 percent, BLS reports.  This
is the largest increase in private industry wages since June 1990, when
the employment cost index rose 4.5 percent. ...  (Victoria Roberts in
Daily Labor Report, page D-1).
__With big pay increases in financial industries leading the way, the
nation's broadest measure of employers' labor costs rose 3.7 percent in
the year ended last month, the largest rise in 6-1/2 years.  That
increase in the ECI was up sharply from the 3.0 percent gain for the
year ended in September 1997. ...  Analysts don't expect the rise to
prevent another Federal Reserve rate cut. ...  (John M. Berry in The
Washington Post, page F1).
__Despite signs that the labor market has cooled a bit since spring, the
pay of workers is rising faster than it has in years.  The nation's
employment cost index rose a surprisingly strong 1 percent this summer.
Though increases in benefit costs remained subdued, wages and salaries
spurted 1.2 percent in the 3 months that ended September 30, the fastest
rate since the summer of 1990, at the end of the long, strong 1980s
economic expansion. ...  "What we're seeing is a fairly broad-based
increase in the rate of growth of compensation," said Katharine Abraham,
Commissioner of BLS. ...  (Sylvia Nasar in New York Times, page C1).  
__Tight labor markets and rising health-care costs forced U.S.
businesses to increase wages and benefits in the third quarter. ...
Rising health insurance costs contributed to a 0.8 percent boost in
workers' benefits during the third quarter, the same as in the second
quarter. ...  While the wage increases are good for workers, they put
the squeeze on the companies because operating costs are rising at a
faster clip than official measures of productivity.  The increases could
also trigger a rise in inflation if companies raise prices to offset
increased wages.  So far, however, inflation has remained tame. ...
(John Simons in Wall Street Journal, page A2).

New claims filed with state agencies for unemployment insurance benefits
decreased by 18,000 to a seasonally adjusted total of 301,000 for the
week ended Oct. 24, the Employment and Training Administration of the
Department of Labor reports. ...  (Daily Labor Report, page D-14; Wall
Street Journal, page A2)_____Initial jobless claims, which had jumped 2
weeks in a row, are back down near a 10-year low  (New York Times, page
C1).

The Conference Board's help-wanted index declined 4 percentage points in
September, to a seasonally adjusted 88 percent of its 1987 base.  "On
the surface, it appears that all the speculation of a deterioration in
labor market conditions may finally be developing," Conference Board
economist Ken Goldstein said.  "But it remains to be seen if a new trend
is developing or if September was merely an aberration.  A few blaring
headlines notwithstanding, there is no evidence layoffs are burgeoning."
....  (Daily Labor Report, page A-3)_____Help-wanted advertising has
slipped, but it remains strong (New York Times, page C1)_____The fall
indicates that the tight labor situation might ease. ...  (Wall Street
Journal, page A2).

Economic activity throttled back substantially in the third quarter,
with the goods-producing sector of the U.S. economy bearing the brunt of
the slowdown, and business economists expect slow-growth conditions to
prevail over the next 6 months.  The National Association for Business
Economics said demand for both goods and services retreated sharply in
the July-September period, with the deceleration in the industrial
sector spreading to other parts of the economy as well.  A survey of 100
NABE members found the goods-producing sector was particularly hard hit,
posting its weakest performance since late 1991. ...  (Daily Labor
Report, page A-11).

Even though many industries are experiencing shortages of qualified
workers, most employers have failed to tap into the pool of qualified
workers with disabilities, who are anxious to work, according to the
National Organization on Disability.  Of 54 million Americans with
disabilities, 17 million are of working age (18-64), NOD's president
told reporters.  Of these, however, only 29 percent currently are
working full or part time.  Of the other 71 percent who are not in the
workforce, 72 percent say they would prefer to be working.  The remarks
were based on a survey released by NOD and conducted by polling company
Louis Harris & Associates on the participation of people with
disabilities in economic and social life. ...  (Daily Labor Report, page
A-3). 


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