BUREAU OF LABOR STATISTICS, DAILY REPORT, WEDNESDAY, MAY 1, 2002:
RELEASED TODAY: In March, 284 metropolitan areas had higher
unemployment rates than a year earlier, 39 areas had lower rates, and 8
areas had rates that were unchanged, the Bureau of Labor Statistics reports.
Thirteen metropolitan areas posted jobless rates of 10.0 percent or more,
eight of which were located in California's Central Valley. Fourteen areas
had unemployment rates below 3.0 percent, with seven of these located in the
South, including three in Florida, and four located in the Midwest. The
national unemployment rate in March was 6.1 percent, not seasonally
adjusted.
Manufacturing activity grew for a third straight month in April, but
at a slower rate than in the previous month, the Tempe, Arizona- based
Institute for Supply Management (ISM) reports. It said its index of
business activity dipped to 53.9 in April, from a revised 55.6 in March.
Analysts had been expecting a reading of 55.0. Because an index over 50
signifies growth in manufacturing, April's figure indicates continued
expansion in the sector, although at a slower rate than in March. Of the 20
industries tracked by the ISM, 18 reported overall growth last month. Among
them were textiles, petroleum, furniture and primary metals. The ISM
measure is closely watched by economists because it offers an early reading
on the health of the manufacturing sector. Its index is based on a survey
of purchasing executives who buy the raw materials for manufacturing at more
than 350 companies. Manufacturers have been the hardest hit by the downturn
in the economy, which officially slid into a recession in March 2001. (Hope
Yen, Associated Press,
http://www.nandotimes.com/business/story/387758p-3084006c.html).
Construction activity fell 0.9 percent in March, fed by a sharp drop
in spending on highways, hospitals, schools and other big government
projects. The decline came after construction spending rose 0.7 percent in
February, the Commerce Department reports. The March performance was weaker
than analysts expected; they were forecasting a 0.2 percent dip. Even with
the drop, the level of spending -- an annual rate of $874 billion -- was
still considered healthy. Economists were expecting construction activity
to edge down with the return of colder weather in March. Mild weather
helped bolster construction activity in January and February. Much of the
weakness in March came from a 5.6 percent decline in spending on big
government projects. Private builders, meanwhile, trimmed spending on
commercial projects in March by 0.3 percent. Spending was lower for
industrial complexes and hotels and motels, while spending on office
buildings edged up slightly. Spending on residential projects rose 0.6
percent in March. Single family homes posted a gain, but multifamily
housing, including apartments, saw spending dip. (Jeannine Aversa,
Associated Press,
http://www.usatoday.com/aponline/2002050110/2002050110082700.htm).
Consumer confidence fell during April, the Conference Board reported
today, as higher energy prices and a declining stock market tempered
optimism about economic growth. The Conference Board's gauge of sentiment
dropped to 108.8 this month from 110.7 in March. The drop was less than
expected. (The New York Times, page C8; The Wall Street Journal, page A2).
Republicans and Democrats in the Senate reached a tentative
agreement on providing help to workers who lose their jobs to international
competition. ....Democrats want to grant more workers federal subsidies to
maintain their health insurance when they lose their jobs. Republicans have
accepted those demands in general. The two sides are divided, however, over
how big the subsidies should be and, to a lesser extent, how they should be
made available to workers. (The New York Times, page A19).
New groups hope to help the elusive temp worker. The growing number
of contingent workers--temps, freelancers, contract workers, and the
like--float in a gray area outside the traditional employer-employee
relationship. Some get benefits through their agencies, but federal data
show they have less access to health and retirement benefits. New groups,
with some help from private concerns, are exploring ways to help bridge that
gap. (The Wall Street Journal, page B10).
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