[PEN-L:1998] BLS Daily Report

[Richardson_D]

This message is in MIME format. Since your mail reader does not understand
this format, some or all of this message may not be legible.

------_=_NextPart_000_01BE3A54.BBBD19E0

BLS DAILY REPORT, WEDNESDAY, JANUARY 6, 1999

RELEASED TODAY:  In October 1998, there were 1,554 mass layoff actions by
employers as measured by new filings for unemployment insurance benefits
during the month.  Each action involved at least 50 persons from a single
establishment, and the number of workers involved totaled 160,888.  The
number of layoff events and initial claimants for unemployment insurance
were higher this October than in October 1997.  The total of layoff events
from January through October 1998, at 12,762, was about the same as in the
prior year (12,170), while the total number of initial claimants, at
1,419,165, was higher (1,270,463). ...   

Construction spending  rose 0.9 percent in November, with strong gains in
residential and public building, the Commerce Department says. ...  (Daily
Labor Report, page A-2)_____Construction spending rose for the sixth
consecutive month. ...  (New York Times, page C18)_____Construction spending
jumped, showing that a main source of the U.S. economy's strength remains
healthy. ...  (Wall Street Journal, page A2)

U.S. sales of cars and light trucks ended 1998 on a strong note for most
auto makers.  The trend was the same as it has been for several years:
Soaring sales of light trucks overcame declining demand for cars. ...
(Washington Post, page F1; Wall Street Journal, page A2)_____DaimlerChrysler
and Ford beat analysts' December sales forecasts, benefiting from strong
truck demand and heavy discounts as the industry's second-best U.S. sales
year ended. ...  (New York Times, page C3).

"Remaking the U.S. Economy:  More Signs of Manufacturing's Weakened Role" is
the title of "Trendlines" by Tim Smart (Washington Post, page F1).  Smart
says that, although manufacturing has been on the decline lately, the
economy in general has been healthy, as shown in construction spending,
consumer spending, and car sales, among other indicators. ...  The
consumer-driven and services-dependent economy, largely domestic in its
orientation, is robust.  Contrast that strength with the weakness shown in
the part of the economy that relies upon exports and makes goods.  Prices in
that sector tend to be set globally. ...  

U.S. factories have cut payrolls by nearly a quarter million since March
1998, with slack demand from economically troubled Asia, a strong dollar,
and cheaper foreign imports contributing to the job loss, say analysts
contacted by the Bureau of National Affairs.  But, they add, technological
advances heighten productivity, and an increasingly popular management
philosophy favoring a leaner workforce has also driven manufacturers to cut
staff.  Payroll declines in manufacturing are not a new story.  In fact,
they are a long-term trend.  However, the recent large job losses focus
attention on the issue. ...  U.S. factories cut their workforce by 47,000 in
November, with job losses widespread across industries, according to data
from the BLS establishment survey. ...  BLS Commissioner Katharine Abraham
said the Asian crisis depressed employment in some sectors, especially in
electronic equipment and industrial machinery. ...  (Daniel J. Roy in Daily
Labor Report, page C-1).

The prevailing view at the three-day meeting of the American Economic
Association was that high stock prices probably reflect the economy's actual
strength and not a speculative bubble that could burst. ...  In the minds of
many economists, the stock market serves mainly as a gauge of the real
economy and a stimulus for spending.  What accounts much more for the strong
economy, in this view, is the happy combination since 1995 of four factors:
robust job creation, rising output, falling unemployment, and minimal
inflation. ...  (New York Times, page C2).

The National Institute for Occupational Safety and Health released a report
that called job stress "a threat to the health of workers" and urged
companies and employees to help reduce their risk. ...  NIOSH cited numerous
studies of workplace stress that have been conducted in the past decade,
including a 1998 survey by the Families and Work Institute that found that
26 percent of workers said they were "often or very often burned out or
stressed by their work."  The report also said tensions appear to be on the
rise, citing a 1997 survey conducted by Princeton Survey Research
Associates, which found that three-quarters of employees believe the worker
today has more on-the-job stress than a generation ago. ...  NIOSH pinned
the blame on a variety of factors, including overwhelming workloads, poor
social environments at work, conflicting or uncertain expectations, job
insecurity, and loss of control over the pace of work because of
computerization. ...  (Washington Post, page F1).

The cost of employee health benefits at large companies will rise almost
twice as much this year as last year, an increase of 7 percent, on average,
compared with 4 percent in 1998.  The cost of health maintenance
organizations will grow as fast or faster on average than the cost of
traditional health insurance, according to a report by benefits consultant
Towers Perrin.  The survey was another indication that the easy savings
offered by managed care may already be behind us. ...  That could prompt
employer-sponsored health plans to shift more of the costs to workers and to
impose stricter controls on the care patients receive.  The survey asked 213
corporations to report the rates they have locked in for coverage this year
or their expected costs if they pay medical claims out of their own funds.
....  The 1999 premium hikes reflect a variety of financial pressures on
health plans, analysts said:  After keeping premiums artificially low to
recruit subscribers, managed care companies are attempting to recoup losses
and placate disgruntled investors; with an estimated four-fifths of the
insured work force enrolled in managed care, employers have largely
exhausted the one-time savings that occur when employees switch from more
expensive traditional insurance; prescription drug costs have been rising
rapidly, partly in response to the introduction of powerful new drugs; and,
having won significant price discounts from doctors, hospitals, and other
health care providers, managed care companies are having a hard time
extracting additional cuts. ...  Over the long run, the aging of the
population and technological advances in medicine pose additional pressures.
....  (Washington Post, page E3).

Consumer demand for medical savings accounts remains lower than expected, so
low that GAO was unable to conduct the entire survey Congress asked it to
produce on the MSA demonstration, GAO reports.  Data show fewer than 40,000
MSAs were sold by June 30, 1998 -- well below the 750,000 cutoff for
demonstrations. ...  (Daily Labor Report, page A-7).

Minimum wage increases are debated once again. ...  "According to BLS, the
purchasing power of the $1.60 federal minimum wage in 1968 is the equivalent
of $7.38 an hour in 1987 dollars," says USA Today (page 3A). 

DUE OUT TOMORROW:  Employee Benefits in Medium and Large Private
Establishments, 1997

------_=_NextPart_000_01BE3A54.BBBD19E0
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------_=_NextPart_000_01BE3A54.BBBD19E0--