BLS DAILY REPORT, FRIDAY, JULY 7, 2000
RELEASED TODAY: Total nonfarm payroll employment was little changed in
June. Private-sector payroll employment rose by 206,000, following a
decline of 165,000 (as revised) in May. The June increase in private
payrolls was largely offset by a decline in federal government employment,
as 190,000 temporary workers hired for the decimal census completed their
work. The unemployment rate was 4.0 percent in June, about the same as in
May. Average hourly earnings increased by 5 cents over the month and by 3.6
percent over the year. ...
Black engineers, scientists, and computer specialists are opening a new
front in the battle over skilled foreign workers. The black professionals
charge that politicians of both parties are scrambling to satisfy high-tech
industry demands for more skilled foreigners, while minority Americans are
being excluded from well-paying mid- and high-level technical and scientific
jobs. ... Fewer technical degrees as a percentage of total degrees awarded
are noted, although the minorities report a higher number of high-tech
degrees granted. But shortages in the tech field still loom. According to
Marjorie Valbrun, writing in The Wall Street Journal (page A2), the Bureau
of Labor Statistics has projected that, over the decade ending in 2008, the
country will need nearly 1.7 million additional computer engineers,
programmers, and analysts. That need is growing, even as the number of
American college graduates with high-tech degrees is falling, according to
the American Electronics Association. The group estimates that 207,056
high-tech degrees were awarded in 1997, down 2 percent since 1990. Although
the number of minorities with degrees in engineering, math, and computer
science has grown in the past decade, the totals remain relatively small.
...
New unemployment insurance claims filed with state agencies decreased by
12,000 to a total of 296,000, after seasonal adjustment, according to
figures from the Employment and Training Administration of the Department of
Labor. ... The Labor Department said claims fell because of seasonal
adjustments. Not seasonally adjusted, "claims rose by almost 10,000 as
summer auto shutdowns began," a Merrill Lynch economist said in a commentary
(Daily Labor Report, page D-1)
New orders to U.S. factories in May took their biggest jump in more than 7
years, But a more up-to-date report showed many of the nation's largest
retailers had sluggish sales in June, adding to signs that the economy's
pace is slowing. A big burst in demand for electronics helped push factory
orders up by a larger-than-expected 4.1 percent in May, the Commerce
Department says. It marked the biggest increase since December 1992 and
followed a 3.8 percent drop in April. Separately, the Mortgage Bankers
Association of America reported that the number of Americans behind on home
mortgage payments declined to the lowest level in 28 years during the first
3 months of 2000. Plentiful jobs and rising incomes have helped consumers
keep up with payments, pushing down the delinquency rate to a seasonally
adjusted 3.72 percent in the first quarter. ... (Washington Post, page
E3)_____Factory orders suggested that signs of a slowdown in consumer demand
are having only limited effect on manufacturers. Orders rose as demand
increased for electronics, autos, and chemicals. ... The gain in orders,
along with a separate Labor Department report showing claims for jobless
benefits fell to the lowest level in 5 years, indicates the record 9-year
economic expansion may not be cooling as much as the Federal Reserve would
like. ... (New York Times, page C2)_____Factory orders shot up in May,
driven by a significant increase in orders for electronics. But the gains
aren't strong enough to cloud the recent picture of a slowing economy. ...
In recent weeks, new jobless claims had risen to their highest levels in
almost a year, supporting the picture of a softening labor market in the May
unemployment report. But today's release of the June employment report will
be the best indicator of the direction of the labor market.. ... (Wall
Street Journal, page A2).
Several retailers reported disappointing sales for June, signaling that
higher interest rates and fuel prices may be dampening consumer spending.
Overall, sales at stores open at least a year rose 2.8 percent in June from
a year earlier, according to Salomon Smith Barney's sales weighted index of
50 retailers. ... (Wall Street Journal, page B4).
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