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Happy Cinco de Mayo
Location: Blogs Russ Henke |
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| Posted by: Russ Henke |
5/5/2007 10:13 AM |
On April 7, 2007, the blog entry in this space began as follows:
Yesterday, April 6, 2007, the US Labor Department reported that
180,000 new jobs were added to non-farm US payrolls in March.
This figure elevated the average number of new jobs added per
month in Q1 2007 to 151,000. While 151,00 per month may
seem large, and it is compared to the dismal record over the
last six years, 151,000 per month does not even keep pace
with the need for new jobs generated by normal US population
growth.
Yesterday, May 4, 2007, the Labor department revised these numbers, having
overstated the February and March job gains by some 26,000. This correction
lowers the Q1 average per month to an even weaker 142,000.
But the change in the February and March numbers was not yesterday’s
blockbuster labor news. Rather, it was that April’s labor report came in at
only 88,000 new jobs, the worst figure in 29 months. And the government
accounted for 25,000 of those 88,000! So US payrolls have grown by an average
of only 129,000 per month after four months this year, some 43% below
the figure at this time last year.
In the separate US household survey, employment plunged by 468,000 in
April, the largest reduction in that survey since November 2002.
Manufacturers cut 19,000 jobs in April, the tenth consecutive month of
reductions in this essential sector so vital to MCAD, CAE and EDA businesses.
Just 32% of 84 manufacturing industries were hiring in April, the lowest in
nearly four years
Average worker wage growth was again mediocre in April, rising just 4 cents
to $17.21. Wages are up only 3.7% in the past year. Perversely, Wall Street
loves it when workers are squeezed, which is one important reason the Dow
closed at another record high yesterday.
Oh well. Let’s try to end our Cinco de Mayo 2007 blog entry on a happier note:
On May 2, 2007, the Internal Revenue Service stated that it is curtailing audits
of those US entities that use offshore tax havens, even when IRS agents see
signs of tax evasion, because “agents often cannot meet a three-year deadline
for finishing an examination.” The Government Accountability Office found that
IRS agents are so hobbled by “dilatory tactics” by offshore taxpayers that it takes
almost two and a half years to complete a typical audit.
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Re: Happy Cinco de Mayo |
By Jack Ring on
5/25/2007 7:23 PM |
| Can you please cite the US population growth in the 1947 to 1987 time frame? Would not that be the proper baseline for commenting on job growth in 2007? |
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Re: Happy Cinco de Mayo |
By Russ Henke on
5/26/2007 5:39 AM |
| The statements in the May 5 blog entry refer to the monthly average number of US jobs being added these days, compared to the monthly average contemporary US population growth. |
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