BLS DAILY REPORT, MONDAY, JULY 10, 2000
__A 190,000 decline in the number of temporary Census Bureau workers largely
offset a 206,000 increase in private-sector nonfarm payrolls in June, the
Bureau of Labor Statistics reports. The unemployment rate dipped 0.1
percentage point to 4 percent in June, marking the 27th month the jobless
rate has been at or below 4.5 percent, Labor Secretary Herman says in a
teleconference with reporters. ... BLS Commissioner Abraham says about
428,000 temporary Census workers remain on government payrolls. The
employment report will continue to be affected by these workers as they are
laid off when their work for the 2000 Census is completed, she adds. ...
"There has definitely been a slowing in service industry job gains,
particularly in business services, which is often viewed as a leading
indicators of cyclical activity," says an economist with RFA Dismal
Sciences. "That's consistent with a slowing economy." ... (Daniel J. Roy
in Daily Labor Report, page D-1; Commissioner Abraham's statement, page
E-1).
__The nation's jobless rate dipped to 4 percent last month, but total
employment grew by only 11,000 workers, a number that analysts said was
below expectations and consistent with a slower pace of U.S. economic
growth. Labor markets still remain tight across the country, and many
employers can't fill job vacancies, particularly for entry-level workers and
temporary summer help. As a result, the normally high unemployment rate for
teens fell last month by nearly a percentage point, to 11.6 percent, the
lowest level in more than 30 years, the Department of Labor said. The
overall unemployment rate has now been below 5 percent for the past 3 years,
and below 6 percent for just shy of 6 years. ... (John M. Berry Washington
Post, July 8, page A1).
__After a disastrous drop in jobs in May, American companies added modestly
to their payrolls in June, creating 206,000 new jobs, reinforcing the
impression that the economy is slowing. Job creation in the private sector
has now fallen from an average of 244,000 a month in the first quarter to
only 110,000 a month from April through June. But, if companies are
reluctant to hire, they are still hiring in sufficient numbers to keep the
unemployment rate at only 4 percent last month, down from 4.1 percent in May
-- the lowest levels since the late 1960's. ... "You still have about
428,000 temporary census takers out there, and they will come off the
payroll, probably in July and August," said Thomas Nardone, chief of the
division that prepares the employment data at BLS. ... (Louis Uchitelle in
New York Times, July 8, page B1).
__A key government snapshot of the job market suggests that the economy
continues to cool, but the slowdown may not be enough to keep inflation
under wraps in the months to come. One month after a weaker-than-expected
unemployment rate of 4.1 percent reinforced hopes of an economic "soft
landing," the nation's jobless rate ticked down to 4 percent in June. The
decrease brings the rate back within shouting distance of the 30-year low of
3.9 percent set in April. ... (Yochi J. Dreazen in Wall Street Journal,
page A4).
By age 12, nearly half of American children perform some type of work, and
the number of youth working rises with age, according to the 80-page
Department of Labor "Report on the Youth Work Force" prepared by the
Department's Bureau of Labor Statistics. Even at the age of 12, the types
of work that girls and boys engage in differ and differences continue
throughout the teenage years, the report shows. Socioeconomic status also
plays a role in youth employment, with more youth from higher income
families working than those living in poverty. ... The report provides a
detailed overall look at youth labor in the United States, including
regulations and work experience. Citing data from the National Longitudinal
Survey of Youth 1997, the report said 57 percent of 14-year-olds reported
having jobs, and 64 percent of 15-year-olds reported having jobs. Many very
young workers reported during freelance work, such as baby-sitting and yard
work. By age 15, youth tend to move from freelance work into more formal
ongoing employment relationships. ... The report is available at
http://www.bls.gov (Daily Labor Report, page A-8).
Collective bargaining so far in 2000 in the construction industry has
produced wage and benefit increases averaging 4.1 percent or $1.23 per hour
for the first year of new agreements, a slight increase from 3.0 percent or
$1.11 per hour in wage and fringe increases reported for the first 6 months
of 1999, the Construction Labor Research Council reports. ... CLRC, a
private collective bargaining research organization underwritten by
construction contractor associations, tracks approximately 2,000 collective
bargaining agreements covering between 1.5 and 1.75 million union building
trades workers. ... (Daily Labor Report, page A-5).
A survey of employee retention and recruitment commissioned by Sage Software
Inc. found that 37 percent of 203 small businesses polled reported
difficulty recruiting new employees. Another survey commissioned by
American Express Small Business Services found that two-thirds of the 798
small business owners polled were not very satisfied with prospective and
existing employee skills. The American Express small business education
survey concluded that most small businesses still view traditional skills as
most important for existing and potential employees, even though the 21st
century offers great opportunity for technology and e-commerce. When asked
if they were satisfied with the pool of employees available to them, only a
third of responding business owners said they were "very" or "extremely"
satisfied. ... (Daily Labor Report, page A-3).
It was a good year for practitioners of the dismal science in 1999, says The
Wall Street Journal (page A4). The median base salary for economists rose
6.25 percent last year to $85,000, according to a survey of the National
Association for Business Economics. The jump came while consumer inflation
rose 2.7 percent. The biannual survey, which polled 662 members, found
"stability within the profession, strong demand for our services, good pay
at large and small firms, and affirmation of the leadership role economists
play in the work place," said the NABE president. Nearly two-thirds of the
economists surveyed are earning additional income from cash bonuses and
profit-sharing. The median amount of such income was $17,500 last year.
NABE says economists working for securities and investment firms and
manufacturers were the highest paid. ...
The Wall Street Journal's feature "Tracking the Economy" (page A18)
forecasts that the June Producer Price Index, to be released by the Bureau
of Labor Statistics Friday, will increase 0.5 percent, according to the
Thomas Global Forecast; the PPI was unchanged in May. The core PPI is
forecast to have increased 0.1 percent in June, after a rise of 0.2 percent
in May.
New employment regulations in the United Kingdom require that part-time
workers receive the same pay, pensions, vacation leave, and training as
their full-time colleagues. The regulations, which implement the European
Union's Part-Time Work Directive, do not specify a threshold of hours
separating full-time and part-time workers. They instead focus on the
customs and practices of each employer, as well as any employment contracts,
according to an analysis of the regulations released by the law firm Baker &
McKenzie. ... (Daily Labor Report, page A-6).
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