BLS DAILY REPORT, MONDAY, AUGUST 7, 2000
__A smaller than expected gain of 138,000 jobs in the private sector during
July, plus the absence of any wage acceleration, gives comfort to
policymakers and analysts who have fretted that the U.S. economy was growing
at too fast a clip. The civilian unemployment rate remained at 4.0 in July,
according to the Bureau of Labor Statistics. Many analysts interpret the
report as a major piece of evidence that the brisk expansion is tapering off
to the point where the Federal Reserve can avoid another interest rate hike
in August. Total payrolls outside of agriculture fell by 108,000 in July,
the largest decline since April 1991, when the U.S. economy was just
starting to pull out of recession. Virtually all of the decline resulted
from layoffs of 290,000 Census Bureau workers hired to conduct the
population count. ... (Daily Labor Report, page D-1; statement of
Commissioner Abraham, page E-1).
__The number of American workers on private employers' payrolls rose more
slowly last month, indicating the nation's demand for labor may be easing
slightly. ... The average monthly increase in private payrolls has been
63,000 in the last 3 months, down from 246,000 in the first 3 months of the
year. ... (Washington Post, Aug. 5, page E1).
__American companies added fewer jobs in July than economists had expected,
reducing the chances that the Federal Reserve will raise interest rates when
it meets later this month, analysts said. In a sign that economic growth is
slowing, the unemployment rate remained unchanged at 4 percent in July, as
private sector payrolls grew by 138,000, about half the number that most
analysts had predicted. The one sign of inflationary pressures was a mild
one. Hourly wages for production employees, who make up about three-fourths
of the work force, rose 6 cents to $13.76, continuing at a pace that is
faster than in late 1999. Since the start of the year, wages have risen at
an annual rate of 4 percent, up from 3.2 percent in the second half of last
year. ... (New York Times, Aug. 5, page B1).
The Labor Department's Employment and Training Administration is seeking
additional public input on its Occupational Information Network (O*Net) --
an automated system for collecting, classifying, and disseminating
information about requirements and characteristics of occupations and
workers. The O*Net data collection program, which has been in development
for more than 4 years, is planned as a continuing activity to maintain a
current database on detailed characteristics of occupations. The resulting
database -- an automated replacement for the "Dictionary of Occupational
Titles" -- "will be the most comprehensive standard source of occupational
information in the nation," according to the Department. The O*Net program
will collect information on up to 300 occupations in the first year,
increasing the number of occupations in subsequent years to allow collection
on all 974 O*Net occupations over 3 to 5 years, the Labor Department said.
... (Daily Labor Report, page A-6).
DUE OUT TOMORROW: Productivity and Costs -- Second Quarter 2000
(Preliminary)
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