> BLS DAILY REPORT, TUESDAY, MAY 15, 2001:
>
> RELEASED TODAY: Labor productivity rose in 1999 in more than two-thirds
> of 119 U.S. manufacturing industries, the Bureau of Labor Statistics
> reports. Slightly more than half of the industries registering
> productivity growth also posted declines in unit labor costs. In 1999,
> the most recent year for which underlying data are available for
> manufacturing industries, labor productivity -- defined as output per hour
> -- increased in 70 percent of the manufacturing industries. Output rose
> in 61 percent of the industries, while hours rose in 33 percent of the
> industries.
>
> Industrial production fell for a seventh consecutive month in April,
> declining 0.3 percent to an index level of 144.9 percent, the Federal
> Reserve reports. The sharpest decline occurred in the production of
> business equipment, which plunged 1.1 percent in April after rising 0.5
> percent in March. Among all durable goods, production fell 0.6 percent in
> April, which production of nondurable goods was unchanged for the month.
> Although the decline in industrial production had been expected by
> analysts, many were surprised by the Fed's sharp downward revision of its
> March data, which brought industrial production down from a gain of 0.4
> percent to a loss of 0.1 percent (Daily Labor Report, page D-4).
>
> Industrial production fell in April for a seventh consecutive month, the
> longest string of declines since 1982 (Bloomberg News, The New York Times,
> page C4).
>
> The manufacturing slump continues as output at factories, utilities, and
> mines fell in April for the seventh straight month, and capacity use
> dropped to its lowest level since 1991 (The Wall Street Journal, page
> A12).
>
> Business inventories shrank 0.3 percent in March, following a revised 0.4
> percent decline in February -- the first back-to-back inventory declines
> since 1992, according to the Department of Commerce (USA Today, page 1B).
>
> The Wage Trend Indicator declined for a second consecutive quarter to
> suggest that private industry wage increases will moderate to below the 4
> percent average by the end of the year, according to the latest WTI report
> released by the Bureau of National Affairs. The WTI's preliminary reading
> for the second quarter is 100.59 -- down from the first quarter level of
> 100.71 and the fourth quarter reading of 100.85 (second quarter 1976=100).
> "The latest WTI suggests that by the end of this year, wage gains could
> dip below the recent 4 percent average," says economist Joel Popkin (Daily
> Labor Report, page D-1).
>
> In an effort to cut corporate costs without cutting jobs, some employers
> are insisting that their employees take time off, often without pay.
> Employers hope that the forced vacation will reduce expenses while
> retaining valuable workers who will be needed when the economy eventually
> rebounds. "Companies are scouring their books looking to cut costs," says
> the chief executive officer of Chicago-based outplacement firm Challenger,
> Gray & Christmas, Inc. Beyond traditional methods, such as restricting
> business travel, he said, the practice of requiring employees to take
> leave "is really growing." Forced time off is most common in the
> high-tech sector, a recognition by those firms that they are in a
> "boom/bust business," says the outplacement spokesman. Employers
> recognize they're going to need people, and they're trying to stave off
> layoffs (Daily Labor Report, page C-1).
>
> Under the Bush budget, next year's federal employment is projected to grow
> about 0.3 percent from this year's estimated 1.8 million workers, as
> measured in full-time equivalent work, says The Wall Street Journal's
> "Work Weak" feature (page A1). About 10 years ago, the federal government
> employed 2.2 million workers. Meanwhile, the General Accounting Office,
> studying the vast majority of executive branch employees, estimates that
> 15 percent of 1998's work force will retire by 2006, a higher rate than
> previous years. The Office of Personnel Management says the government is
> strengthening recruiting.
>
> Work days missed due to nonwork repetitive-strain injuries climbed to 162
> per 10,000 days in claims submitted to insurer MetLife, Inc.'s disability
> business last year, from 79 per 10,000 in 1995 (The Wall Street Journal in
> it's "Work Week" feature, page A1).
>
> DUE OUT TOMORROW: Consumer Price Index, April 2001; Real Earnings, April
> 2001.
>
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