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Title: Payrolls in U.S. Rise 290,000 in April; Unemployment at 9.9%
Source:
BBG
URL Source: http://www.bloomberg.com
Published: May 7, 2010
Author: Timothy R. Homan
Post Date: 2010-05-07 08:33:27 by war
Keywords: None
Views: 2622
Comments: 15
May 7 (Bloomberg) -- Employment in the U.S. increased in April by the most in four years and the unemployment rate unexpectedly rose as thousands of people entered the labor force, indicating the recovery is becoming self-sustaining. Payrolls jumped 290,000 last month, more than the median estimate of economists surveyed by Bloomberg News, after a revised 230,000 increase in March that was larger than initially estimated, figures from the Labor Department in Washington showed today. The April gain included 66,000 temporary workers hired by the government to help conduct the 2010 census and a 231,000 rise in private payrolls. Companies such as General Electric Co. are boosting staff as sales improve, leading to income gains that may spur consumer spending and more hiring. At the same time, unemployment may take time to recede as Americans who had dropped out of the workforce resume the job hunt, one reason why the Federal Reserve says it will keep interest rates low. “The private sector is improving and job growth is picking up,” Julia Coronado, a senior U.S. economist at BNP Paribas in New York, said before the report. “The job growth will be enough to keep us on a pretty decent growth track.” Manufacturers added the most workers to payrolls since August 1998, employment at service-providers rose the most since November 2006 and construction companies hired for a second straight month. The gain in overall employment in April was the biggest since March 2006. Overall payrolls were forecast to increase by 190,000, according to the median estimate of 84 economists surveyed by Bloomberg. Estimates ranged from gains of 75,000 to 300,000. The improving economic data is one reason the Greek debt crisis is unlikely to derail the U.S. economic recovery, according to economists like James O’Sullivan. U.S. and Europe “Growth data has been heading upward into the crisis in the U.S. and globally,” O’Sullivan, chief economist at MF Global Ltd. in New York, said before the report. “That is a very powerful force to counter the headwinds from the problems in Europe.” The Dow Jones Industrial Average plunged as much as 998.5 points, or 9.2 percent, before paring its drop to 347.8 points at the close of trading in New York yesterday. It ended the day at 10,520.32, a two-month low. The Standard & Poor’s 500 Index fell 3.2 percent to 1,128.15. The jobless rate was projected to hold at 9.7 percent. Forecasts ranged from 9.5 percent to 9.8 percent. The unemployment rate rose as more people entered the workforce. The figures showed an 805,000 increase in the civilian labor force and employment rose by 550,000. Private Payrolls The gain in private payrolls was the fourth in a row and followed a 174,000 increase in March that may have reflected, in part, a weather-related rebound from the prior month. Private employment was projected to climb by 100,000, according to the median of 25 forecasts. A government boost to hiring is already under way at the Census Bureau. The agency said it will take on about 970,000 temporary workers from April through June to conduct the population count that occurs every 10 years. The government program may have the biggest impact on payroll figures in April and May, when the bulk of the hiring will take place, and will then subtract from the job count the following months as employees are dismissed after the work is done. For that reason, economists will be excluding workers on public payrolls for much of the rest of the year in gauging the state of the labor market. Average hourly earnings rose to $22.47 in April from $22.46 in March, today’s report showed. Government Employment Today’s report from the Labor Department showed that government payrolls increased by 59,000 in April. State and local governments reduced employment by 6,000 during the month, while the federal government added 65,000. The average work week for all workers rose to 34.1 hours in April, the highest since January 2009, from 34 hours the prior month. The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- increased to 17.1 percent from 16.9 percent. The report also showed an increase in long-term unemployed Americans. The number of people unemployed for 27 weeks or more rose as a percentage of all jobless, to a record 45.9 percent. Factory payrolls surged 44,000 in April after rising 19,000 in the prior month. The median forecast by economists in the Bloomberg survey called for a gain of 20,000. Construction, Services Payrolls at builders increased 14,000 last month after gaining 26,000. Service providers added 225,000 workers after an increase of 175,000 in March. The number of temporary workers increased 26,200 in April. Payrolls at temporary-help agencies often turn up before total employment because companies prefer to see a steady increase in demand before taking on permanent staff. Some companies are seeing enough improvement in sales to warrant increasing headcount. GE, the world’s largest maker of jet engines, power-generation equipment and locomotives, increased the number of jobs it plans to add in Michigan to more than 1,300 with the creation of about 220 aerospace manufacturing positions, the Fairfield, Connecticut-based company said this week. Billionaire Warren Buffett, whose Berkshire Hathaway Inc. cut more than 20,000 jobs last year, said his Omaha, Nebraska- based company is now adding staff as the economic recovery boosts demand at its industrial units. “We do hire people when we have something for them to do,” Buffett told investors last week in Omaha, Nebraska, where Berkshire held its annual shareholders’ meeting. “We are a net hirer now.” The economy grew at a 3.2 percent annual rate in the first three months of the year, the third quarterly advance, according to data from the Commerce Department released last week.
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#1. To: All (#0)
(Edited)
The improving economic data is one reason the Greek debt crisis is unlikely to derail the U.S. economic recovery, according to economists like James O’Sullivan. I'm not sure that I agree with that. Eurozone has been gobbling up US exports, which have been driving US growth, and the Greek "crisis" has the potential to derail growth in the EU.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
A rising unemployment rate at this point in the recovery is pretty normal as more folks come back to try and find jobs. Overall this is very good news. Being a Republican means you get to choose your own reality.
An influx of 805K workers is a lot of people. Is it good? Hard to tell...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
OMG...if there's ever been a quote that demonstrates liberal Democrats are required to IGNORE REALITY, this is it. Thanks GO65...thats one the most illuminating posts you've ever made.
I can see NOVEMBER from my House....
Uh Badeye, in the last two recessions the unemployment rate "peaked" around 18 months into the recovery. See: And expect to see a lot of this chart over the next few weeks (well, not if you are watching Fox News): Being a Republican means you get to choose your own reality.
Uh, GO65, do you even LISTEN to your own party's messages? 'Our new economy!' We aren't in Kansas anymore, Dorothy. The historical record you cite is irrelevant here, in the year 2010. The funniest part is your citation of temp jobs, mainly supported by 200,000 'census workers' btw, as if they are 'long term'. See this over the 'next few months'? Ah, no, the next three, tops. Be sure to bookmark this one.
I can see NOVEMBER from my House....
As if facts mattered to the Boof. Both Reagan and Boy Blunder waved their magic wands and we went to full employment.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Bookmarked!
You are badly misinformed (again). --- Being a Republican means you get to choose your own reality.
I've forgotten more about how these numbers work than any talking point repeater like yourself, GO65. The 'under employed' number ROSE, my badly 'uninformed' friend. Only a liberal could say with a straight face a HIKE in the official unemployment figures to 9/9% is 'a good thing'. Then again, to be a Liberal Democrat requires ignoring reality...
I can see NOVEMBER from my House....
I didn't say it's a good thing. I said, the unemployment rate is a measure of those looking for work, and that historically it rises during the early stage of a recovery. Those are facts, sorry if they don't agree with your talking points/spin.
Being a Republican means you get to choose your own reality.
Our President did, and puleeze spare me the hypocrisy of YOU bring up 'talking points spin'.
I can see NOVEMBER from my House....
House Minority Whip Eric Cantor today: Get on board there Badeye!
Being a Republican means you get to choose your own reality.
Any reason you left out the rest of his response: -- What concerns me, however, is whether we are creating long-term, sustainable jobs that will help America reclaim its place as the world’s sole economic superpower. The agenda being pursued by Democrats in Washington—fueled by a spend-now, pay-later governing philosophy—is a barrier to the kind of job growth that America so desperately needs. “Out-of-control spending in Washington has produced a Mount Everest of debt that we are asking future generations to climb. Even if the economy added 250,000 jobs every month, it would take nearly five years to get back to full employment. Five years is too long. It doesn’t help matters that job creators have already indicated that the new health care law will substantially increase their costs causing workers to lose their jobs. “I look at the horrible images coming out of Greece and I am struck by the reality of what can happen when a country goes on a shopping spree without paying its bills.
Why don't you post the rest of what he said? (laughing) Like I said, spare the hypocrisy of YOU whining about talkin point spin.
I can see NOVEMBER from my House....
#2. To: war (#1)
#3. To: go65 (#2)
#4. To: go65 (#2)
A rising unemployment rate at this point in the recovery is pretty normal
#5. To: Badeye (#4)
OMG...if there's ever been a quote that demonstrates liberal Democrats are required to IGNORE REALITY, this is it.
#6. To: go65 (#5)
Uh Badeye, in the last two recessions the unemployment rate "peaked" around 18 months into the recovery.
#7. To: go65 (#5)
Uh Badeye, in the last two recessions the unemployment rate "peaked" around 18 months into the recovery.
#8. To: Badeye, Fred Mertz (#6)
#9. To: Badeye (#6)
The funniest part is your citation of temp jobs, mainly supported by 200,000 'census workers' btw, as if they are 'long term'.
The dollar rallied as private employers added 231,000 workers across the economy, from manufacturing and construction to services. Companies including General Electric Co. and Berkshire Hathaway Inc. are adding staff in response to growing sales, indicating gains in consumer spending may spur more hiring.
The April gain included 66,000 temporary workers hired by the government to help conduct the 2010 census and a 231,000 rise in private payrolls.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aM8s4_WR2xjA&pos=2
#10. To: go65 (#9)
#11. To: Badeye (#10)
Only a liberal could say with a straight face a HIKE in the official unemployment figures to 9/9% is 'a good thing'.
#12. To: go65 (#11)
I didn't say it's a good thing.
#13. To: Badeye (#12)
Our President did, and puleeze spare me the hypocrisy of YOU bring up 'talking points spin'.
"An employment report that shows job growth is always a good thing, period."
#14. To: go65 (#13)
"An employment report that shows job growth is always a good thing, period."
#15. To: go65 (#13)
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