NewsMine — economy — united-states — 2004 — 2004-jan-mar — Viewing Item

Job growth stalls in february { March 5 2004 } Original Source Link: (May no longer be active)    http://www.nytimes.com/2004/03/05/business/05CND-ECON.html?hp http://www.nytimes.com/2004/03/05/business/05CND-ECON.html?hp March 5, 2004 Job Growth Stalls in February, Surprising Forecasters By DAVID LEONHARDT Job creation all but stalled in February, surprising forecasters and making life difficult for President Bush as he begins his re-election campaign. The economy added just 21,000 jobs last month, down sharply from January's gain and far below the type of increase that was common in the 1980's and 1990's. The unemployment rate held steady at 5.6 percent, the Labor Department reported, mostly because many people stopped looking for work, removing them from the government's official count of the unemployed. "This is a disappointment," said Richard D. Rippe, chief economist of the Prudential Equity Group. "It shows very sluggish job creation in an economy which by almost all other measures is really doing very well." The problems showed up in nearly every corner of the labor market. Manufacturers cut jobs for the 43rd consecutive month. Hourly wages for most of the workforce rose just 3 cents, roughly at the rate of inflation. The average length of unemployment rose to 20.3 weeks, its highest level since 1984. The one glimmer of hope, economists said, was that last month's unusually harsh weather forced households to delay some spending and companies to postpone projects, raising the possibility that job growth would bounce back in March. The interest rate on 10-year Treasury notes fell sharply after the release of the report at 8:30 a.m., as investors considered the possibility that the Federal Reserve would not raise its benchmark interest rate until next year. It is now at a 50-year low, in an effort to encourage borrowing and spending and shock the economy out of its longest employment slump since the 1930's, albeit one that it is many degrees milder. "The pace of job growth remains well below anything approaching what the Fed would need to see to consider raising rates," Drew T. Matus, an economist at Lehman Brothers, wrote to clients. "The clock is currently not even plugged in." The major stock indexes fell between 0.5 and 1 percent when they opened at 9:30 a.m. in New York. In addition to the disappointing February numbers, the job gains for January were revised down to 97,000, from the 112,000 estimated a month ago. Construction companies lost 24,000 jobs in February as bad winter weather in some parts of the country delayed projects. Leisure and hospitality firms cut 9,000 jobs in February. Retailers, however, added 13,000 positions in February. Temporary help firms added 32,000 and education and health-care services gained 13,000 jobs last month. Analysts want to see the economy generate around 200,000 or 300,000 net jobs a month on a consistent basis before they declare a recovery in the fragile labor market. Slow job growth has been a political problem or President Bush. During the Democratic presidential campaign the candidates seized upon the lack of jobs as evidence that Mr. Bush has handled the economy poorly. The Associated Press contributed reporting for this article. Copyright 2004 The New York Times Company

Adds fewer jobs than expected Blue chips in the red Bush says sending jobs overseas helps us { February 10 2004 } Data dispite bush rich label for small businesses Dollar hits 11 year low against pound Dollar plunges after us jobs data { March 5 2004 } Dollar slides as consumer data disappoint Dollar slips vs high yielders ahead of trade data Euro hits new high against dollar { February 18 2004 } Fed governor says inflation was too low Fed keeps rates steady calls for patience Gop cheers job increase { April 3 2004 } Greenback slides on lack of fed worries { January 6 2004 } Heineken warns weak dollar will hit profits Inventory levels low show wary business { March 12 2004 } Investors should worry about inflation risks Job growth stalls in february { March 5 2004 } Lack of new job deals blow to us economy { March 5 2004 } Levi strauss zips up last us plants { January 9 2004 } Manufacturing jobs replaced with mcdonalds Manufacturing news disappoints economists Misleading unemployment figures muddled job crisis Mutual fund 40bn inflows 2003 { February 5 2004 } Nasdaq leads surging wallstreet Ny fed warns of risks to us economy Reactions to fed rate left unchanged Real unemploytment rate higher argue economists Senator hollings discusses dangers sending jobs overseas { March 30 2004 } Sluggish job growth threatens recovery { February 10 2004 } States expect budget shortfalls Stocks slip oil prices a worry Treasuries surge as fed ackknowledges jobs gloom Us national debt tops 7trillion { February 18 2004 } Us stocks soar after 5 day tumble Files Listed: 34

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