BLS DAILY REPORT, MONDAY, AUGUST 4, 1997

__The economy keeps up its robust pace of job creation, adding 316,000
jobs to nonfarm payrolls in July, according to data released by BLS.
The gain meant that 2.5 million jobs have been created over the last
year.  The unemployment rate declined to 4.8 percent, returning to its
May level.  Release of the upbeat employment report capped a week during
which virtually every government economic report portrayed a vigorous
expansion on a low inflation path ....(Daily Labor Report, page D-1;
statement on July employment situation by BLS Commissioner Abraham to
Joint Economic Committee, page E-1).
__The U.S. economy continued to create jobs, as the unemployment rate
fell to 4.8 percent, although wages did not rise ....(Washington Post,
Aug. 2, page F1).  
__The economy entered the summer with fresh strength, as an unexpected
number of new jobs dropped the nation's unemployment rate to 4.8 percent
last month, matching a 23-year low set in May.  While analysts had
predicted that the economy would rebound from a spring slowdown, the
jobs data, combined with a private report on manufacturing, fanned fears
that the rebound would be too strong ....(New York Times, Aug. 2, page
A1).
__The economy added a stronger-than-expected 316,000 new jobs in July
after a healthy 228,000 gain in June, and the jobless rate fell to 4.8
percent from 5.0 percent in June ....(Wall Street Journal, page A2).

BLS names Lois L. Orr as associate commissioner for employment and
unemployment statistics, effective Aug. 3, says the Daily Labor Report
(page A-12).  Orr  will fill a vacancy left by Thomas Plewes, who left
BLS in November  for a new assignment as second in command of the U.S.
Army Reserve.  Orr has worked for BLS since 1959, when she joined the
agency as an economist in the Office of Field Operations in the Chicago
region.  She served as assistant regional commissioner for the Chicago
region, and in 1985 was chosen regional commissioner.  Since March 1997,
Orr has been the associate commissioner for field operations ....BLS
also recently appointed Philip L. Rones assistant commissioner for
current employment analysis.  Rones has worked for BLS since 1974.
Rones has been chief of the division of labor force statistics in the
office of employment and unemployment statistics since 1994.   

The manufacturing sector picked up speed in July, the National
Association of Purchasing Management reports.  The NAPM employment index
continued to grow in July, but at a slower rate than in June ....An
index greater than 47 percent, over time, is generally consistent with
an increase in BLS data on factory employment ....(Daily Labor Report,
page A-8)__The index of manufacturing strength shot up to the highest
level since November 1994 ....(Wall Street Journal, page A2).

Personal income rose 0.6 percent in June, while spending advanced a more
restrained 0.3 percent, the Commerce Department reports.  Wage and
salary disbursement advanced by 0.8 percent, after a 0.3 percent May
increase ....(Daily Labor Report, page D-18). 

New orders for manufactured goods rebounded in June, the Census Bureau
says, largely due to an increase in new orders for transportation
equipment, stemming from orders for aircraft and parts and for motor
vehicles and parts ....(Daily Labor Report, page D-46).

"Measuring Productivity in the 90's: Optimists vs. Skeptics" is the
title of an article by Louis Uchitelle in the New York Times (Aug. 2,
page 25) ....The productivity enthusiasts argue that the new electronic
technologies have finally been harnessed and exploited in the workplace.
Starting in 1994 or so, they say, the nation's workers have been
producing more for each hour and each day they work.  Most important,
this improvement will last, they say.  Their enthusiasm, however, relies
heavily on their own narrow measures of productivity ... and on
circumstantial evidence.    The official broad statistics flatly deny
that productivity is rising.  Quite the contrary, they show it weaker
than ever in the 1990's.  Many economists, embracing official
statistics, are skeptical of the bullish view ....The stakes in this
debate are enormous.  The performance of the stock market and the future
financing of Social Security and Medicare are increasingly tied to the
outcome ....One test came this week, when Commerce announced updated
estimates of how much the economy, as measured by the GDP, has actually
grown since late 1992.  The productivity optimists had expected a sharp
upward revision ....But the GDP revision was minor ....The article is
illustrated with a graph, with the data attributed to BLS, of average
annual percentage changes in output for each hour worked in the
nonfinancial corporate sector and in all nonfarm private business.  

Sales results released by auto makers show an industry in an
old-fashioned price war, with companies offering some of the broadest
discounts ever in efforts to increase their market shares ....(New York
Times, Aug. 2, page 25).

"Leaner government keeps callers on hold," says "The Federal Page" in
the Washington Post ....Federal workers these days are, by and large,
psyched to serve.  They have voice mail and fax-on-demand and more
caller options than Detroit has car colors ....But more than 30 million
callers last year simply gave up, according to one government estimate.
And that's considered an improvement.  To experience what callers
endure, two Knight-Ridder reporters put away the press credentials that
earn them special treatment.  Guided only by information operators, a
standard phone directory, and the kindness of strangers in the
bureaucracy, they started asking question ....Fifty of them.  In 50
different federal offices.  For two weeks ....The administration has
figured out that treating callers well improves their attitude toward
the federal government.  Moreover, it's three times more expensive to
answer a letter than a phone inquiry, according to experts at the
National Performance Review ....The same administration, however, has
downsized by 70,000 the number of clerical workers who used to, among
other things, answer phones.  In other words, Washington has bet that
voice mail, e-mail, hot lines, personal computers, and Web sites would
offset the loss of about a third of their support staff.  Private
industry has made much the same wager, but there are two differences.
One is that government's complexity more often defies automated answers
....Also, many government offices got rid of clerical help before voice
mail had replaced the workers ....In fact, of the ten Knight-Ridder
questions that proved unanswerable, most involved unreturned voice mail
messages ....Of course, getting to the right offices is the real trick
....It's hard, in the end, to conclude that the service was substandard.
Forty of 50 difficult questions got answered, the majority in three
calls or less, not counting transfers in the course of a call.  Most
were answered in three hours, including time waiting for calls back.
National Performance Review experts said that the best private-sector
companies aimed to answer inquiries in one call.  They kept callers
waiting less than 15 seconds, and always offered live operators as an
option to voice mail.  That's hardly realistic for the federal
government, however ....  



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