ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Friday, January 05, 2007

More on the Bush Economy

Or perhaps it'll now be called the Democrat economy... I mean, immediately after the midterm elections, the Dems got to work putting Americans back to work.

December U.S. Payrolls Rise 167,000; Jobless Rate Holds at 4.5%

By Joe Richter and Carlos Torres

Jan. 5 (Bloomberg) -- Employers in the U.S. added a greater- than-expected 167,000 workers to payrolls in December and incomes grew by the most in eight months, adding to evidence the economy is weathering a slump in housing and manufacturing.

The gain in employment followed a 154,000 rise in November that was larger than previously estimated, the Labor Department reported today. The jobless rate held at 4.5 percent.

The job market's resilience suggests incomes will grow enough to keep consumers spending and the economy growing. The report may ease concern among some Federal Reserve policy makers about slowing growth, while increasing the risk that higher wages will fuel inflation.

``Wages are accelerating,'' Bob Stein, a senior economist at First Trust Advisors LP in Lisle, Illinois, said before the report. ``We think the economy will come in stronger than people expect. Expectations of a rate cut will be drained out of the market.''

Economists expected payrolls to rise by 100,000 following a previously reported 132,000 November increase, according to the median estimate of 70 forecasts in a Bloomberg News survey. Estimates ranged from no change to an increase of 164,000.

Hourly Earnings

Workers' average hourly earnings rose 8 cents, or 0.5 percent, the most since April, after rising 0.3 percent the previous month. Economists expected a 0.3 percent increase in hourly wages. Earnings were up 4.2 percent from December 2005, a gain last exceeded in November 2000.

Economists also projected a 4.5 percent unemployment rate. Today's report includes annual revisions to the household survey used to calculate the unemployment rate. The revisions, which covered the period from 2002 to 2006, didn't change the unemployment rate for any month last year.

Last month's payroll gains were led by increases in banking, insurance, restaurants and building management. Altogether, service-producing industries contributed 178,000 new jobs last month after adding 195,000 in November, the report showed. Retailers shed 9,200 jobs.

Manufacturers shed 12,000 jobs last month after eliminating 20,000 jobs a month earlier. The manufacturing workweek held at 41 hours and overtime rose to 4.3 hours from 4.2 hours.

Manufacturing, which accounts for about 12 percent of the economy, has slowed as companies trying to pare swollen inventories postpone new orders.

Of course, this good bit of economic news won't be reported as another demonstration that the Bush economic policy is working... no, they've ignored that story for the past 5 years and having the Dems in Congress won't change their coverage.

I wonder how Lou Dobbs will cover this bit of news this evening?

Your Co-Conspirator,
ARC: St Wendeler