|
Bush job growth helped by supermarket strike ending { April 3 2004 } Original Source Link: (May no longer be active)
http://seattletimes.nwsource.com/html/nationworld/2001894735_jobs03.htmlStill, one month of outsized job gains does not a recovery make. The growth was inflated by some temporary factors, including the return to work of about 15,000 workers with the end of the Southern California's supermarket strike. A 71,000-job increase in construction jobs was due in part to warm weather after an unusually cold February.
http://seattletimes.nwsource.com/html/nationworld/2001894735_jobs03.html
Saturday, April 03, 2004, 12:00 A.M. Pacific
Permission to reprint or copy this article/photo must be obtained from The Seattle Times. Call 206-464-3113 or e-mail resale@seattletimes.com with your request.
Job market springs to life with 308,000 March hires
By Ken Moritsugu and Steven Thomma
Knight Ridder Newspapers
WASHINGTON — The U.S. economy surprised forecasters by adding 308,000 jobs in March, triple the expected number and the largest monthly increase since 2000.
The Labor Department figures gave the Bush administration something to brag about, after months of criticism from Democrats about the "jobless recovery."
Even the top Democrat on Congress' Joint Economic Committee, Rep. Pete Stark of California, conceded, "I have to say 308,000 jobs ain't bad."
The unemployment rate inched up to 5.7 percent from 5.6 percent the previous month, the Labor Department said. The rise reflected growth in the pool of available workers, as more people began looking for work.
Unemployment remained highest among blacks and Hispanics. The unemployment rate for blacks rose to 10.2 percent from 9.8 percent in February. The Hispanic rate was unchanged at 7.4 percent.
The last time the economy added as many jobs was in spring 2000, when it grew by 493,000 jobs in March and 308,000 in April.
The job growth exceeded the expectations of economic forecasters, who had predicted an increase of between 103,000 and 120,000 jobs, and holds the promise that the U.S. economic recovery may be on a sound footing.
If true, it also could dampen Democratic criticism of President Bush's economic record and boost his re-election prospects.
An ebullient Bush, campaigning in economically hard-hit West Virginia, credited his tax cuts for sparking job growth. "The policies are working," he said.
A robust, jobs-creating economy could boost Bush's re-election campaign and weaken Democratic attacks on Bush as the first president since Herbert Hoover to preside over a net loss of jobs in the country. "If they (Republicans) can approach the election having restored most of the lost jobs, that would be a phenomenal plus," said Larry Gerston, a political scientist at San Jose State University in California.
John Zogby, an independent pollster based in New York, said, "This has the potential to drive thousands of voters into the Bush camp." Likely voters rank jobs and the economy as their top concern by a roughly 2-to-1 ratio over terrorism and security, Zogby said.
Bush's presumed Democratic challenger John Kerry, who has made the loss of more than 2 million jobs on Bush's watch a central campaign theme, acknowledged the jobs report as "welcome news for America's workers."
Kerry, recovering from shoulder surgery at home in Boston, said, "Obviously all of us are pleased with the job numbers this month, but there's almost no way this administration will avoid having lost 2 million jobs."
Stocks rallied on the news. The Dow Jones industrial average climbed to 10,470.59, up 97.26 points. The Nasdaq composite index jumped 42.16 points to 2,057.17. Bonds fell, pushing up interest rates, on concern that the Federal Reserve will begin raising its benchmark federal funds rate if job growth remains strong.
Still, one month of outsized job gains does not a recovery make. The growth was inflated by some temporary factors, including the return to work of about 15,000 workers with the end of the Southern California's supermarket strike. A 71,000-job increase in construction jobs was due in part to warm weather after an unusually cold February.
An encouraging sign: The Labor Department revised upward job estimates for January and February, bringing the average gain for the past three months to 171,000. That's close to the 200,000-plus range that would signal a healthy recovery. The question is whether job growth will last. "The final piece of the economic recovery is in the process of falling in place," said Sung Won Sohn, the chief economist at Wells Fargo bank. But, he added, "It is too early to celebrate."
Bill Conerly, a Portland-based regional economist, seemed more confident, saying, "The job gains have been slow in coming, but now they are here to stay. I expect another 1.5 to 2 million net new jobs to be added by year end." That's a national forecast, with the impact on the Northwest still being studied. However, in the Northwest, Boeing continues to shed jobs, although not as fast as in previous months.
Washington state's unemployment rate has been falling for several months and stands at 6.1 percent for February. A report for March is expected April 13.
A strong national economy is felt in the Seattle area. King County's unemployment rate was 5.7 percent in February, down from 6.9 percent in February a year ago. But in Snohomish County, heavily dependent on Boeing, the unemployment rate was 7.1 percent in February, down from 8 percent a year earlier.
Times associate editor Stephen Dunphy contributed to this report. Associated Press contributed to this report.
|
|
