BUREAU OF LABOR STATISTICS, DAILY REPORT, FRIDAY, MARCH 1, 2002: RELEASED TODAY: In May 2001, 19.8 million persons usually did some work at home as part of their primary job, the Bureau of Labor Statistics reported today. These workers, who reported working at home at least once per week, accounted for 15 percent of total employment. These findings are from a special supplement to the May 2001 Current Population Survey (CPS). The CPS is a monthly survey of households conducted by the U.S. Census Bureau for BLS. Data on work at home were last collected in the CPS in May 1997; however, due to changes in the questions asked, much of the data for May 2001 is not comparable with the May 1997 data. In 2001, half of those who usually worked at home were wage and salary workers who took work home from the job on an unpaid basis. Another 17 percent had a formal arrangement with their employer to be paid for the work they did at home. The remainder who worked at home -- 30 percent -- were self-employed.
Mass layoff events totaled 2,146 in January resulting in job losses for 263,821 workers, according to figures released by the Bureau of Labor Statistics. The number of initial claimants for unemployment insurance was the highest for the month of January since the series began in April 1995. The number of mass layoff events dropped from December, when 2,440 events resulted in 268,893 initial claimants, according to BLS (Daily Labor Report, page D-15). New claims for unemployment insurance benefits during the week ending February 23 totaled 378,000, an increase of 17,000 from the previous week's revised figure of 361,000, according to figures from the Employment and Training Administration (Daily Labor Report, page D-12). The help-wanted advertising index was unchanged in January, standing at the December index level of 47, the Conference Board says. The index was 77 a year ago. Help-wanted advertising increased in six of the nine U.S. regions in the last 3 months, the Conference Board reports. The Mountain region, which includes Denver, Phoenix, and Salt Lake City, increased 28.8 percent. The East South Central region, which includes Birmingham, Knoxville, Louisville, Memphis, and Nashville, saw a 10.1 percent increase (Daily Labor Report, page A-9). The U.S. economy bounced back from the shock of the September 11 terrorist attacks to grow at a much faster rate in the final 3 months of last year than initially estimated, the Commerce Department reported yesterday. Fueled in large part by consumer spending, the nation's economic output rose at a 1.4 percent annual rate in the fourth quarter, the department said, sharply revising the earlier estimate of a meager 0.2 percent annual growth rate. Even though economists at the National Bureau of Economic Research said a recession officially began last spring, the new figures indicate that overall economic activity declined only in the third quarter of last year (John M. Berry, The Washington Post, page A1). "What drove up consumer spending in the fourth quarter, and is still driving it up, was zero-percent financing, price discounts, tax rebates, and huge promotional pricing for big-ticket items," says James W. Paulsen, a senior economist at Wells Capital Management in Minneapolis (Louis Uchitelle, The New York Times, page C2). As recessions go, the one that officially started last year appears to be one of the strangest. A few economists, in fact, aren't even sure a recession occurred. Their argument was bolstered by the Commerce Department's revision of fourth quarter economic growth. The department now figures the economy grew at a 1.4 percent annual rate, up from the government's previous estimate of 0.2 percent, thanks to surprisingly strong consumer spending on automobiles and other products (The Wall Street Journal, page A2). Consumers spent briskly in January, as their incomes rose solidly, the Commerce Department reported today. The news was a fresh sign that the U.S. economy, shaken by the recession and terrorist attacks, is on the road to recovery. Spending by consumers, which accounts for two-thirds of all economy activity in the United States, rose 0.4 percent last month after being flat in December. At the same time Americans' incomes, which include wages, interest, and government benefits, also increased by 0.4 percent, the largest advance in 6 months. Incomes rose 0.3 percent in December (Jeannine Aversa, Associated Press, http://www.chicagotribune.com/business/chi-020301econ.story). U.S. consumer spending posted a robust gain in January, 0.4 percent, its best showing since October. Income growth kept pace, climbing by 0.4 percent in the month. Disposable income -- income minus taxes -- grew a hefty 1.6 percent, boosted by changes in January tax withholding made as a result of income tax cuts enacted last year. Analysts polled by Reuters had expected income to post a smaller 0.1 percent gain, and spending to see a 0.3 percent increase (Reuters, http://www.bayarea.com/mld/bayarea/business/2771711.htm). U.S. manufacturing activity rose for the first time in 18 months, thanks to a rise in orders and increased production, while consumer spending and construction grew solidly, fresh signs that an economy shaken by the recession and the terrorist attacks is on the road to recovery. The Institute for Supply Management, formerly known as the National Association of Purchasing Management, reported that its index of business activity jumped to 54.7 in February from 49.9 in January, suggesting the battered manufacturing sector has pulled out of a long slump. An index above 50 signifies expansion, while a figure below 50 shows contraction ( Associated Press, Jeannine Aversa, Lisi de Bourbon, http://www.nandotimes.com/business/story/277637p-2516025c.html). Paid leave and flexibility over working hours will take on increasing importance over the next 10 years, as the labor market shrinks and the nature of the workforce changes, according to two policy analysts who spoke to the Washington, D.C. chapter of the Industrial Relations Research Association (Daily Labor Report, page A-10).
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