BLS DAILY REPORT, FRIDAY, JUNE 4, 1999
RELEASED TODAY:
The unemployment rate, at 4.2 percent, was little changed in May. The
number of nonfarm payroll jobs edged up by 11,000, following a large
increase of 343,000 in April (as revised). In May, substantial job losses
occurred in manufacturing and construction, while the services industry had
a relatively small gain. ...
Also released are the Statement of Katharine G. Abraham, Commissioner,
BLS, and the "March 1998 Benchmark Revisions to Payroll Survey Employment
Estimates."
Truck terminal facilities, roofing, logging, siding, cut stone, and sheet
metal work are the highest-risk small business industries, according to a
report by the National Institute for Occupational Safety and Health, which
found that the average annual costs of workplace-related illnesses and
injuries ranged from $935 per employee in roofing, siding, and sheet metal
work to $5,703 per employee in logging businesses. The report, "Identifying
High-Risk Small Business Industries: The Basis for Preventing Occupational
Injury, Illness, and Fatality," found that these small businesses have some
of the highest average annual costs for occupational injury and illness per
employee. In comparison, average annual costs for major industries with
larger employers range from $781 per employee for the construction industry
and $627 per employee in the manufacturing industry. ... The leading causes
of fatal occupational injuries among small business industries are
transportation accidents, assaults and violent acts, contact with objects
and equipment, and falls, according to the study. ... (Daily Labor Report,
page A-6).
The high-technology industry created more than a million new jobs in the
United States between 1993 and 1998, the American Electronics Association
reports in a study entitled "Cyberstates 3.0: A State-by-State Overview of
the High Technology Industry." The electronics and information technology
industry -- which includes software and computer-related services,
computer-related manufacturing, and communications services -- employed 4.8
million American workers in 1998. The greatest number of jobs were created
in Texas, California, Georgia, Colorado, and Washington State, the
association said. The study is based on employment data from BLS. High-tech
industry workers' pay averaged $53,100 in 1997, the association said, about
77 percent more than the average private sector wage. Workers in the
pre-packaged software sector earned the most, with salaries averaging
$80,000 per year, the study found. ... (Daily Labor Report, page A-7).
Many private economists and Wall Street strategists believe the odds now
favor an increase in interest rates when the Federal Reserve Board's
policy-making committee meets later this month. ... The markets will focus
today on the BLS monthly report on unemployment, looking for signs that
might influence the Fed. If the number of new jobs added to the economy in
May was greater than the 215,000 that most economists anticipate, it could
send jitters through the financial markets and push the yield on the 30-year
Treasury bond above 6 percent. ... The most damaging report so far,
economists said, was the release of CPI data for April, which showed a
dramatic rise in inflation. Though that was discounted by many economists
because of one-time spikes in energy, apparel, and tobacco costs, the
underlying core rate ... still rose sharply. The New York Federal Reserve
Bank president told reporters that there was a "low chance" the April
inflation number was a fluke, raising the importance of the CPI for May,
which will be released June 16. ... (Washington Post, page E1).
The number of new unemployment insurance claims filed with state agencies
rose by 4,000 to a seasonally adjusted 305,000 in the week ended May 29, the
Employment and Training Administration of the Department of Labor reports.
.... (Daily Labor Report, page D-4; New York Times, page C2).
New orders for manufactured goods fell 1.2 percent in April, the Census
Bureau reports. New orders rose 1.9 percent in March, while April marked the
second decrease in demand for factory goods in the last 3 months. ...
(Daily Labor Report, page D-1)_____The April decline in new orders for
manufactured goods reflected a big drop in the demand for aircraft and other
transportation products. Excluding transportation, factory orders would
have risen by 0.5 percent. ... (Washington Post, page E10)___Orders placed
with manufacturers other than airplane makers rose in April, suggesting that
a record peacetime expansion may be picking up speed. ... (New York Times,
page C2)_____Factory orders fell in April, but most of the manufacturing
sector continued on an upward trajectory. Indeed, the continued recent
signs of accelerating economic growth -- not just in manufacturing, but in
housing and elsewhere -- are spurring fears that the Fed will be prompted to
raise interest rates later this month. ... (Wall Street Journal, page A2).
Americans' shopping spree continued into May, boosting sales at the nation's
biggest retailers to better-than-expected levels for the fourth straight
month. The big winners in May were specialty clothing chains, while
department stores and discounters also fared well. ... (Washington Post,
page E1)_____United States retailers posted robust sales in May, as
consumers continued to show great confidence in the economy by snatching up
everything from wardrobes in summer white to pool furniture. Analysts see
few signs that the consumption binge will abate. ... (New York Times, page
C2)_____Despite a late Memorial Day and cooler-than-usual weather during
much of May, most retailers reported better-than-expected sales growth for
the month, reinforcing expectations for a good fiscal second quarter.
Retailers and industry watchers said the robust consumer spending that has
boosted sales for most of the year continued apace into May. The results
seemed to defy some speculation last month that tepid April sales growth
hinted at an economic slowdown. ... (Wall Street Journal, page B3).
California will begin selling confidential wage data it collects on 14
million people statewide to private information companies, car dealers, and
creditors wanting to check people's annual income. A law that pasted last
summer allows the state's Employment Development Department to disclose the
salary information. Previously, the data was available only to other
government agencies. The program, which could bring the state $15 million
over the next decade, could start later this year or in early 2000. No data
would be shared without the written permission of the individual, state
officials said. But private companies that are deemed qualified to have
access to the data would operate on an honor system and would not be
required to show proof of such permission. Supporters, including banks and
lenders that championed the legislation, contend the data will allow them to
process loan applications faster and cut back on fraud. But consumer groups
say the electronic disclosure of someone's salary could fall into the wrong
hands -- including debt collectors or marketing firms wanting to woo wealthy
customers. ... The state wage data were originally collected to figure out
unemployment taxes and benefits. ... (Associated Press story in Washington
Post, page E2).
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