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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
| EMPLOYMENT, UNEMPLOYMENT, AND INFLATION | |
| Title | Brief Summary |
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Some private researchers
estimate that jobs sent overseas could amount to as much as four-tenths
of a percentage point or more of the latest reported unemployment rate of
6.1 percent. The increasing prominence of "offshoring" work has
led private analysts to attempt to quantify it with widely ranging results.
The government has never attempted to measure the loss. (Updated October 7, 2003) |
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New applications for
unemployment benefits have dropped to the lowest level in 5 months. The
decrease of 29,000 applications dropped the new unemployment claims to a
count of 386,000. This is the first time that claims fell below 400,000
since February 8, 2003. Most see this as a hopeful sign that the economy
is throttling up for expansion. (Updated Auigust 27, 2003) |
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An expected budged deficit
of $455 billion this year is sending waves of optimism through the democratic
ranks. The democratic contenders for the presidential bid are pointing to
the deficit as a huge failure of the Bush administration's economic policy
while the republicans point to terrorism and two wars to explain shift from
a surplus to a deficit. (Updated Auigust 27, 2003) |
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The unemployment rate
for January fell slightly, from 6.0 percent in December to 5.7 percent.
A decrease in the unemployment rate and an increase in the number of jobs
created should have been received warmly by the business and financial communities
as strong evidence that the economy was improving, but the reception was
lukewarm. (Updated April 4, 2003) |
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Long-term unemployment
- the number of people unemployed for 15 weeks or longer - increased 50
percent last year. The Labor Department estimates that 3 million people
have been unemployed for 15 weeks or more and about half of those have been
unemployed for at least 6 months. (Updated October 11, 2002) |
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USA Today reports that
despite the recession, total factor productivity grew over this past year
and can play an important part in fueling the economic recovery. (Updated September 1, 2002) |
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With analysts uncertain
as to the future direction of the economy, the latest data on wholesale
prices and new claims for unemployment insurance provided some hopeful signs
of a continued recovery. (Updated September 1, 2002) |
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An important reason that
consumer spending has been buoyant is the declining rate of inflation. Where
the economy goes in the next few months depends importantly on what happens
to the rate of inflation. (Updated May 1, 2002) |
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Company payrolls rose
in February, the first increase in nine months. Even though the economy
is improving, unemployment could continue to rise if accessions to the labor
market exceed employment growth. (Updated May 1, 2002) |
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January's monthly report
on labor market conditions released by the U.S. Department of Labor, provided
further support for those who view the recession to be ending and for those
who believe it is not. Based on the latest labor market data, economists
believe that even if a recovery is imminent, it will be weak. (Updated March 20, 2002) |
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Exports are an important
part of Germany's economy and the U.S. recession has reduced the demand
for German exports, leading to a slowdown in the German economy. Unemployment
rose to over 4 million people and a two-year high rate of 10.4 percent in
January. (Updated March 20, 2002) |
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The nation's unemployment
rate rose to 5.8 percent in December, the highest rate in 7 years. (Updated February 13, 2002) |
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Economic reports by
the Labor and Commerce Departments, as well as the Federal Reserve, provide
evidence that inflation decreased in 2001 and that there are hopeful signs
that the recession may end soon. (Updated February 13, 2002) |
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Two government commissions
and many economists have argued that the CPI is flawed and overstates inflation.
As a result of the commission findings, a number of changes that have the
potential of lowering the measure of inflation and saving the government
billions of dollars have been introduced in the methodology for constructing
the CPI. (Updated January 15, 2002) |
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Much of the focus of
economists in the past 40 years has been on inflation, but the Commerce
Department reported a decline of 0.4 percent for the third quarter at an
annual rate for personal consumption expenditures; this is the first quarterly
decline since 1954. (Updated December 1, 2001) |
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Last year, health care
costs rose 4.1 percent, and indications are that this year's increase will
be even higher. A consequence of rising health care costs is that workers
signing up for health plans now will face the largest rate increases in
10 years. (Updated November 1, 2001) |
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Although the monthly
unemployment rate rose only slightly in June, to 4.5 percent from 4.4 percent
in May, the disturbing statistic was the decline in employment in the service
sector - the first decline in 4 decades. (Updated August 1, 2001) |
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The Labor Department's
monthly labor market report showed that the nation's unemployment rate fell
in May to 4.4 percent, an indication of the economy's weakness rather than
its strength. (Updated July 1, 2001) |
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In spite of daily notices
of new layoffs, evidence of a slowing economy and plunging stock market
prices, consumer confidence, as measured by the Conference Board, surged
in March. This month's survey indicates that consumers are a lot more optimistic
about the future. (Updated May 1, 2001) |
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A success of the EU was
the decrease in unemployment in Germany and other EEU countries. Germany
just announced that for the second month in a row its jobless rate had risen,
now standing at 9.3 percent of the workforce, or 3.8 million individuals. (Updated April 1, 2001) |
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The U.S. Department of
Labor's labor market data for the month of December provided evidence that
the economy had indeed slowed. The Labor Department's report caused a significant
drop in stock prices. (Updated February 1, 2001) |
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There is a mounting body
of evidence that the economy is slowing. Stephen Roach, chief economist
at Morgan Stanley Dean Witter, argues that the economy has stalled and that
another shock, perhaps in the form of another decline in the stock market,
could bring a recession both here and abroad. (Updated January 1, 2001) |
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Argentina is in the midst
of an economic crisis due in part to economic choices that the government
has made, but also as a result of international credit markets demanding
higher interest rates. The IMF may have avoided a crisis with an emergency
loan package, but high interest rates may be a signal that more turbulence
lies ahead. (Updated January 1, 2001) |
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According to the wealth
effect, increases and decreases in wealth produce increases or decreases
in consumer spending and opposite changes in savings. There is another explanation
for recent increases in consumer spending and spending that leads to a different
prediction for future spending and savings behavioržan alternate explanation
according to David Ricardo. (Updated November 1, 2000) |
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In a somewhat surprising
announcement, the Labor Department reported that for the first time in 14
years consumer prices actually fell in August. The primary cause of the
decline was an unusually large drop in the price of energy, which is only
temporary, since the price of oil has risen in September to a 10-year high.
(Updated October 1, 2000) |
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One of the most significant
benefits of the booming economy has been the growth in real wages -- that
is, wages adjusted for inflation. Real wages have increased steadily since
January 1996 -- until this year. The problem now is the increase in inflation. (Updated October 1, 2000) |
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The Labor Department
reported that consumer prices increased 0.2 percent in July. Many analysts
believe that this modest increase will cause the Federal Reserve to maintain
interest rates at their current level. Others argue that inflationary pressures
have increased and additional rate hikes will be needed. (Updated September 1, 2000) |
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The Bureau of Labor
Statistics (BLS) reported that the Consumer Price Index (CPI) rose 0.1 percent
from April to May. Although a monthly rise of 0.1 percent is considered
to be a benign indicator of inflation, the May report did cause some concern
among economists, some of whom feel that the inflation rate is accelerating.
(Updated July 1, 2000) |
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After months during which
consumer spending exceeded gains in personal income, last month's data apparently
revealed a turnaround in consumer behavior. Personal income increased by
0.7 percent in March, while consumer spending increased just 0.5 percent. (Updated June 1, 2000) |
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The Phillips Curve was
a simple theory - if unemployment fell below some level, inflation would
start to rise. Unemployment, however, has fallen since the 1990s with no
sign as yet of an increase in inflation. As this trend has continued, some
are questioning whether we need a new theory. (Updated April 1, 2000) |
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During the 1992 presidential
campaign, the economy surfaced as a leading issue. So far during the primaries
in this presidential election year, the economy has barely been mentioned.
However, with months to go before the election, some wrinkles are developing
which may cause the economy to emerge as an important issue. (Updated April 1, 2000) |
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The current economic
expansion, now in its 107th month, is closely being monitored. Indications
of too high a growth rate produce calls for increases in interest rates.
Evidence of a slow-down reduces the need for increases in interest rates
to slow demand. (Updated April 1, 2000) |
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The Labor Department
reported that January's unemployment rate fell to 4 percent, the lowest
level in 30 years. This provides further evidence of the economy's strength
and the tightness of the labor market. (Updated March 1, 2000) |
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Oil was selling at $11.37
a barrel in February of 1999, and jumped to more than $25 a barrel in December.
The doubling of oil prices has not had much of an impact on the inflation
rate, nor does it appear to be slowing the economy. (Updated January 1, 2000) |
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Anticipating what the
Federal Reserve will do at its next monthly meeting is a popular topic of
discussion in Washington and on Wall Street. So when important economic
data like the Producer Price Index (PPI) are released, the numbers are scrutinized
for some clear indication as to the direction in which it might cause the
Federal Reserve to lean. (Updated December 1, 1999) |
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The long-awaited turnaround
in the economy may have started last month. The Bureau of Labor Statistics
reported that job growth came to a halt in September and that for the first
time since January 1996 the size of the workforce decreased. (Updated November 1, 1999) |
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Should we again start
worrying about inflation? The view of the Fed appears to be that our recent
record with inflation is not the result of a restructuring of financial
markets, but the product of a few lucky breaks. This may lead the Fed to
raise interest rates at its next meeting. (Updated October 1, 1999) |
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The Federal Reserve recently
raised interest rates a quarter of one percent because of concern that the
economy was expanding beyond its capacity. The Fed also indicated that additional
rate increases might not be necessary at this time. Data from the U.S. Department
of Labor June's employment report support the Fed's assertion. (Updated August 1, 1999) |
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After a sharp rise in
April, the Labor Department reported that consumer prices were unchanged
for the month of May, calming fears that the data for April reflected a
significant increase in inflation. (Updated July 1, 1999) |
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The Bureau of Labor Statistics
reported that the nation's unemployment rate fell to 4.2 percent in May,
the lowest monthly level in 29 years. The decline in the unemployment rate
supports the belief that the economy is still growing. (Updated July 1, 1999) |
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U.S. labor markets are
tight, with the unemployment rate at or near 29-year lows. The Labor Department,
however, has just reported that labor costs, as measured by the Employment
Cost Index (ECI), rose just .4 percent last quarter, the smallest gain since
1982. (Updated June 1, 1999) |
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The U.S. economy created
more jumps than expected in January, holding the nation's unemployment rate
at 4.3 percent -- a 28-year low. (Updated March 1, 1999) |
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The economic slowdown
has yet to happen. Despite economic turbulence around the globe, lower corporate
profits and the threat of new layoffs, the U.S. economy keeps creating jobs
at a record pace. (Updated February 1, 1999) |
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The U.S. economy continues
to pump out jobs. The Labor Department reported that the nation's unemployment
rate fell from October's rate of 4.6 percent to 4.4 percent in November
-- coming very close to a 30 year low. (Updated January 1, 1999) |
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Is deflation, a decrease
in the average level of prices, a possibility? Alan Greenspan, chairman
of the Federal Reserve, recently stated that deflation from the Far East
is heading our way. (Updated December 1, 1998) |
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The Labor Department
reported that consumer prices remained unchanged in September--the first
time in six months that the index was constant. This and other reports point
to a slowing economy with virtually no risk of a surge in inflation. (Updated November 11, 1998) |
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The Commerce Department
reported that U.S. economic growth slowed sharply to a 1.4 percent annual
rate in the second quarter. (Updated September 1, 1998) |
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Labor mobility is critical to the
success of the European Monetary Union (EMU). Immobility of labor raises
a country's unemployment rate because the unemployed do not move to where
the jobs are. In order to reduce the unemployment rate, governments often
try to stimulate their economy by using monetary and/or fiscal policy. However,
with the adoption of the euro, .... (Updated August 12, 1998) |
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The U.S. Department of Labor reported
that the nation's jobless rate remained unchanged in July at 4.5 percent....
Further evidence of growing weakness in the labor market was the drop by
nearly 300,000 in employment over the past two months. (Updated August 12,
1998) The U.S. Department of Labor reported that the nation's jobless rate
remained unchanged in July at 4.5 percent.... Further evidence of growing
weakness in the labor market was the drop by nearly 300,000 in employment
over the past two months. (Updated August 12, 1998) |
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The Bureau of Labor Statistics reported
that its key measure of inflation, the Consumer Price Index (CPI), has undergone
a major renovation for the first time in more than a decade, and the changes
will first be reflected in the January 1998, CPI figure. (Updated June 16, 1998) |
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When is the inflation coming? The
economy is growing at a rate that in the past would have caused much anxiety
on the part of the Federal Reserve. Inflationary pressures are building
and many question the Fed's decision to hold interest rates steady. (Updated May 22, 1998) |
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When the unemployment rate falls
to levels of 4.6 to 4.7 percent, we would expect there to be a lot of pressure
on wages to increase. So far this year, this has not been the case.... (Updated May 22, 1998) |
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The Bureau of Labor Statistics reported
that its key measure of inflation, the Consumer Price Index (CPI), has undergone
a major renovation for the first time in more than a decade, and the changes
will first be reflected in the January 1998, CPI figure. (Updated May 19, 1998) |
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The Bureau of Labor
Statistics (BLS) announced that the last of a series of changes begun in
1995 to correct the Consumer Price Index for biases will trim the measure
of inflation and have a significant impact on the federal budget and the
economy. (Updated May 19, 1998) |
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