BLS DAILY REPORT, TUESDAY, OCTOBER 31, 2000
RELEASED TODAY: In September 2000, there were 936 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 106,842. The
number of layoff events and initial claimants for unemployment insurance
were the highest for the month of September since this series began in April
1995, due, in part, to a calendar effect (September 2000 contained 5 weeks
that ended in the month compared with 4 weeks in each of the prior 4
Septembers.) From January through September 2000, the total number of
layoff events (10,490) was slightly lower than in January-September 1999,
while the total number of initial claims (1,188,580) was somewhat higher.
...
Despite dot.com hype, stock options are a small part of compensation, says
The Wall Street Journal's "Work Week" feature (page A1). A Bureau of Labor
Statistics study found only 2.4 percent of all U.S. private employers
offered their workers stock options last year. Such grants were most common
among publicly traded companies in certain industries -- technology firms,
durable-goods manufacturers, and wholesale and retail trades -- and
executives were the most likely to take advantage of them. BLS said 5.3
percent of employees in publicly held companies and 19.6 percent of
executives in such firms received stock options in 1999. ...
A table in The Wall Street Journal (page B20) says that more companies offer
stock options to employees below the senior executive level, according to a
survey of 900 employers by WorldatWork. For example, 80 percent of
companies offer stock options to those involved with information technology,
71 percent to those in sales, 76 percent of technical people, 55 percent of
administrative workers, 21 percent of part-timers, and 4 percent of contract
employees.
__A large gain in federal farm subsidies boosted total personal income in
September, the Bureau of Economic Analysis reports. Total personal income
rose 1.1 percent including the farm subsidy payments. Without the payments,
the gain was 0.4 percent. BEA figures showed that manufacturing wages and
salaries declined 0.3 percent in September, the second straight month of
decline. Factory payroll levels have declined in recent months, as shown by
the employment report from the Bureau of Labor Statistics. ... (Daily Labor
Report, page D-1).
__Americans' incomes boosted by huge federal farm payments increased in
September by the largest amount in 13 months, while consumer spending rose
at the fastest pace since February. Spending, propelled by heavy demand for
durable goods such as cars, was up 0.8 percent. Economists said the new
report showed that, while the overall economy slowed sharply in the summer,
the all important consumer sector still had plenty of strength. It was led
by big gains in income that are helping consumers continue to buy with
abandon, despite rising debt burdens and a weakening stock market. Both the
income increase and the spending gain were well above expectations, and some
analysts said they would translate into an upward revision in the gross
domestic product, the economy's total output for the third quarter.
Consumer spending accounts for two-thirds of total economic activity. ...
(Washington Post, page E6).
__Spending by the nation's consumers surged last month, and federal farm
payments increased incomes, suggesting demand for goods will grow in the
months ahead. Purchases of autos and more expensive gasoline led the 0.8
percent rise in personal spending in September, the biggest gain in 7
months, after a 0.5 percent increase in August. ... (New York Times, page
C14).
Uncle Sam drafts a GI bill for tech workers to draw talent, says The Wall
Street Journal in its "Work Week" feature (page A1). With starting salaries
for government computer jobs at least $12,000 a year below those in the
private sector, federal agencies have struggled to meet their growing
information technology needs. To address the problem, Congress last week
approved $11.2 million to create a scholarship program for students pursuing
information-security degrees. In return, they must work at federal agencies
after graduation.
Mandatory overtime appears to have increased relatively little, says The
Wall Street Journal in its "Work Week" feature (page A1). An analysis of
payroll statistics by the Employment Policy Foundation found that only about
20 percent of all full-time hourly workers put in any overtime, and they
tend to be concentrated in certain industries, such as mining, construction,
and transportation and communications services. Since 1989, overtime worked
by this group increased only about an average of one hour a week, says the
EPF, an employer-funded research group in Washington. But while the extra
work may not be more burdensome than in the past, the EPF concedes that time
pressures on workers have increased, leading to workplace friction. Among
the reasons, longer commutes and the growing prevalence of dual-earner
households. ...
Once touted as the future, work-at-home situations are losing favor with
employers, says The Wall Street Journal (page B1). ... An estimated 24
million Americans regularly or occasionally telecommute, says the
International Telework Association and Council in Washington. That's up
from some 8.5 million in 1995, according to Find/SVP. But in a sign of
mounting disaffection with the once-popular perquisite, more companies now
allow only proven stars, rather than newcomers, to telecommute. Other
employers have created tough hurdles for would-be home workers. Some
concerns no longer allow even existing employees to participate. Why the
change of heart? Many bosses believe telecommuting causes resentment among
office-bound colleagues and weakens corporate loyalty, says the president
and chief executive of CareerEngine.comInc. Others say telecommuters miss
out on last-minute office meetings and can't interact as readily with other
workers. ... (Wall Street Journal, page B1).
DUE OUT TOMORROW: Metropolitan Area Employment and Unemployment: September
2000
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