South-Westerns' Economic News Summaries
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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 
Jobs Drift Downward
Full Summary

The previously growing job market lost some of its punch in July as fewer jobs were added and the unemployment rate increased. While some businesses are still hiring, others are not and the overall tend is downward.

(Updated September, 2007

Gas and Food Prices Increase, Core Inflation Rate Falls
Full Summary

American consumers are feeling the pinch of higher energy and food prices while the measure of inflation watched by the Fed continues on a downward trend. The overall inflation rate rose in May, but the core rate of inflation decreased.

(Updated July, 2007

Has Inflation Turned the Corner?
Full Summary

The lingering threat of inflation seems as if it has turned the corner and is trending downward. The April figures released recently suggest that a cooling economy is bringing inflation down with it. However, it may be too soon to call it a trend with the average price of gasoline rising to $3.10 nationally.

(Updated June, 2007

Good News for Labor
Full Summary

The unemployment rate fell and as job growth continued at a strong pace in March. This good news for labor comes at a time when other signs of economic activity are not so strong. The average wage rose to over $17.oo per hour over a year earlier.

(Updated May, 2007

The Ravages of Inflation
Full Summary

For almost seven years the quality of life and the Zimbabwe Economy have been following a slow, deliberate, uninterrupted decline. This year is no different, except the decline is faster. Hyperinflation has left 8 in 10 citizens destitute, destroyed the country's factories and farms, and bankrupted the government.

(Updated March, 2007

Better Than Expected
Full Summary

The latest Beige Book gave indications of an American economy that was better than expected. Workers wages tend to be rising and consumers are spending more at their local malls while the skid in the housing market is easing in some regions of the country.

(Updated February, 2007

Inflation Spikes Above Fed Target
Full Summary

With recent data suggesting a slowing of inflation many analysts predicted a lowering of interest rates by the Federal Reserve. A recent spike in inflation, however, may quell that opportunity. The core inflation rate, the one used by the Fed to indicate inflationary pressure, rose to 2.6 percent in December.

(Updated February, 2007

The Goldilocks Economy
Full Summary

Economists sometimes refer to a "Goldilocks economy" - one that is not too hot or not too cold. It is an economy that is "just right." The economy of December 2006 has given economists concern, because it is both too hot and too cold.

(Updated January, 2007

Inflation Fears Remain
Full Summary

The Labor Department reported a swift increase in wholesale prices in November. The increase comes as a stark reminder that inflation is still a threat in the United States economy.

(Updated January, 2007

PPI Statistics Send Mixed Inflation Signals
Full Summary

Wholesale prices dropped more than expected in September because gasoline prices dropped unexpectedly. However, when the Wholesale Price Index is adjusted by excluding volatile energy and food prices, the so-called core Producer Price Index increased more than analysts expected. These contradictory numbers may dampen any expectations that the Fed will lower interest rates anytime soon.

(Updated November, 2006

Labor Looks Good on Labor Day
Full Summary

As America celebrates the Labor Day holiday, employment figures are strong. Hiring picked up in August, bringing the unemployment rate down to 4.7 percent and sending a message of a strong United States economy.

(Updated October, 2006

There's GOT To Be Something Better Than This!
Full Summary

About 13 percent of U.S. men between 30 and 55 are currently working neither working nor looking for work--an increase of 5 percent since the late 1960s. This trend represents a significant cultural shift from three decades ago, when most men invariably went back to work of some kind after losing a job. Generally, workers then were able to find new jobs that met their needs and expectations.

(Updated September, 2006

June was Jumpin' for Consumer Prices
Full Summary

Even as Fed chairman Bernanke paints a rosier inflation picture, the U.S. Labor Department's core Consumer Price Index increased again in June. This was the fourth consecutive increase for the much watched measure of inflation.

(Updated August, 2006

February Job Growth Strong
Full Summary

American employers added 243,000 new jobs in February. This strong hiring trend by business indicates that employers are optimistic about future U.S. economic performance. But as we know from economics, we always face trade-offs: The downside of the employment growth is additional price pressures as labor costs rise in response to increased demand for workers.

(Updated April, 2006

Wholesale Prices Cause Inflation Concerns
Full Summary

Excluding the volatile food and energy sectors, the U.S. wholesale price level rose 0.3 percent in February. But prices for items like drugs, magazines, machinery and jewelry jumped--causing many analysts to highlight the possibility of higher inflation later in the year.

(Updated April, 2006

Will Inflation Targeting Work?
Full Summary

Congressional Democrats worry that Federal Reserve Chairman nominee Ben S. Bernanke will act too much to control inflation at the cost of not paying enough attention to employment growth. The worry stems from Bernankeís stance on inflation-targeting in implementing monetary policy as opposed to Alan Greenspanís attention to and balance between both issues.

(Updated December, 2005

The Inevitable Inflation-Unemployment Trade Off?
Full Summary

Federal Reserve Chair nominee Ben S. Bernanke stated recently that he believes the economy can have both low inflation and employment growth. Current chairman Greenspan agrees that the two issues are compatible. These statements fly in the face of conventional macroeconomic wisdom that we canít have one without sacrificing the other..

(Updated December, 2005

Job Growth is Great, but it May Bring an Unwelcome Houseguest: Inflation
Full Summary

American employers added 207,000 new jobs in July. This U.S. business strong hiring trend indicates that employers are optimistic in the longer term about the state of the U.S. economy. The downside is that the added pressure on prices as labor costs rise in response to the increased demand for workers may mean an overall increase in the price level-sometimes known by its less formal name: Inflation.

(Updated November, 2005

Despite Katrinaís Worst, U.S. Economy Loses Only 35,000 Jobs
Full Summary

In the first broad snapshot of the economy since Hurricane Katrina hit Louisiana and Mississippi, the U.S. economy lost only 35,000 jobs. This number was much less than most analysts expected.

(Updated November, 2005

Hurricanes and Jobs
Full Summary

Unemployment reached a four-year low as the economy added 169,000 new jobs in July. However, hurricanes Katrina and Rita have created a regional disaster with great potential for disrupting the energy industry. Economists are thus revising their estimates of economic growth downward.

(Updated October, 2005

Job Numbers Down in May
Full Summary

American employers added only 78,000 new jobs in May. This lackluster measure of job growth indicates that employers remain cautious about the strength of the U.S. economic recovery. The increase was the smallest monthly increase in nearly two years.

(Updated August, 2005

Measuring Housing Prices
Full Summary

Housing prices are rising rapidly in most areas of the U.S., but their impact is not reflected in the consumer price index. The reason for what seems to be an inconsistency is explained by the way housing prices are entered into the national data accounts.

(Updated August, 2005

April Jobs Creation Exceeds Expectations
Full Summary

The U.S. economy added about 274,000 jobs in April. This unexpectedly high job growth rate may be an indication that the recent economic slowdown may be nothing more than a pause.

(Updated July, 2005

Inflation Slows in April
Full Summary

After a larger-than-expected increase in March, the Consumer Price Index (CPI) rose less in April. Prices still rose, but most analysts welcomed the slower pace, which affirmed current Fed monetary policy.

(Updated July, 2005

U.S. Job Market Grows--But Slowly
Full Summary

The employment picture for the U.S. economy continues to improve, but slowly. Unemployment fell to 5.2 percent, compared to 5.4 percent in March. Overall, the economy created about 110,000 new jobs.

(Updated June, 2005

Job Growth Less Than Expected
Full Summary

American employers added 146,000 new jobs in January. Such lackluster job growth indicates that employers are still cautious when it comes to putting on new workers, despite a year of strong economic growth.

(Updated April, 2005

Inflation May Be On the Rise
Full Summary

Some Federal Reserve officials appear to be worried that inflation will pick up. Those that are worried are pushing for increasing interest rates faster than originally planned.

(Updated April, 2005

Good Jobs Report for 2005
Full Summary

The economy added about 2.2 million jobs in 2004, just about enough to replace the total number of jobs lost since President Bush took office. The economy appears to continue its recovery, but employers are still cautious about hiring.

(Updated March, 2005

The Circular Reasoning of Job Growth
Full Summary

The U.S. economy has continued to create new jobs, but not as quickly as experts had forecast. Now, three years after the recession officially ended in November of 2001, job growth continues to be slower than in any previous recovery since World War II.

(Updated February, 2005

Job Growth Strong
Full Summary

American employers created 337,000 new jobs in October. This strong measure of job growth renewed hopes that businesses may finally be starting to hire new workers more aggressively. This monthly total was the largest number of new jobs since March, 2004.

(Updated January, 2005

U.S. Earnings Gap Widens
Full Summary

The U.S. earnings gap-the difference between salaries paid to highest-income employees and the salaries paid to the remainder of the work force--continues to widen in the current economic recovery. Some higher-paying jobs have been created, but a disproportionate number of new jobs pay much less than firms have previously offered.

(Updated October, 2004

A Labor Day Look at Jobs
Full Summary

Labor Day 2004 brings some rosy statistics for American workers. The national unemployment rate is down, real wages are growing and record-low interest rates promise to boost economic growth and provide more jobs.

(Updated October, 2004

Two Keys to Long-term Economic Recovery
Full Summary

Less than three years since the American economy has climbed out of its recession, some economic reports suggest that a sustained recovery may still be in doubt. The evidence: slower-than-expected retail spending, declining auto purchases, and slower computer hardware and software sales. In order to sustain the recovery, the economy needs a boost in consumer spending and new investment spending by businesses.

(Updated September, 2004

Matching Jobs and Workers
Full Summary

President Bush continues to assert that the economy is strong and getting stronger. As evidence, he points out that the nation added 1.5 million jobs since last August. On the other hand, Bush's Presidential rival John Kerry and his supporters claim that the country is still generating a million fewer jobs than when Mr. Bush took office. Part of the jobs problem relates to a mismatch between workers' skills and job requirements.

(Updated September, 2004

Consumers Spend, Prices Rise
Full Summary

After months of robust employment gains, the government reported recently that U.S hiring slumped sharply in June. The month saw employers add less than half the expected number of new jobs and the number of hours worked dwindled.

(Updated August, 2004

U.S. Job Growth Slows
Full Summary

After months of robust employment gains, the government reported recently that U.S hiring slumped sharply in June. The month saw employers add less than half the expected number of new jobs and the number of hours worked dwindled.

(Updated August, 2004

Double Talk: Long-term Trend or Short-term Jolt?
Full Summary

News stories continue to characterize the Fed's view that inflationary pressures are unlikely to disrupt the economic recovery. At the same time, the press suggests that the Fed is prepared to raise interest rates if economic predictions are wrong.

(Updated August, 2004

Job Growth and Political Rhetoric Soar
Full Summary

In March, the economy produced 337,000 new jobs and April added 288,000 jobs for the American economy. According to the Labor Department, this soaring number of new jobs is clear evidence that the pace of hiring is picking up substantially in response to a growing economy. Politically, the meaning of these increases is still in question.

(Updated July, 2004

Just When Things Were Looking Good
Full Summary

As the economy continues to show signs of improvement, two nagging problems remain. Job growth remains slow and consumer confidence has taken a dip. Economists watch both of these measures closely to forecast future economic conditions.

(Updated May, 2004

The Long Term Prospect For Inflation
Full Summary

The Federal Reserve Officials continue to make it clear that they view the current recovery quite differently than recoveries of the past. Their actions continue to offer remarkably cheap money to the American economy, even though all indications are for a continuing rapid rate of growth. If this recovery were like those of the past, all expectations would look toward inflation and an increase in the interest rate by the Federal Reserve.

(Updated March, 2004

Bush Whitehouse Looking for Jobs
Full Summary

The economy continues to show signs of strong economic growth, but job creation is not. Normally, a growing economy will created new jobs too. The latest statistics for December indicate that job creation is virtual nil. Not surprisingly, the Democrats have jumped on Bush's inability to create jobs as a way to discredit him in the upcoming election campaign. Administration officials know full well that the economy in general and job creation in particular remain a great political weakness

(Updated March, 2004

The Long Run Effect of Offshoring Jobs in Technology
Full Summary
As the U.S. economy improves, an unsettling weakness remains due to job movement overseas. Technology jobs like computer programming and technical support continue to be outsourced to lower-cost nations such as India. This movement raises the question: Is this movement an opportunity or a threat?.
(Updated February, 2004
Service Sector Showing Growth
Full Summary
Expanding employment in the economy's huge service-sector gives economists new hope for a strong recovery. The service-sector, the economy's biggest employer, showed strong employment gains for the month of October, according to The Institute of Supply Management's index of nonmanufacturing activity.
(Updated January 4, 2004
The Jobs That Went Offshore
Full Summary
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
Less Firing, More Hiring
Full Summary
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
Will the Deficit Hurt Bush?
Full Summary
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
The ABC's of Counting
Full Summary
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
Looking and Not Liking
Full Summary
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
Totally Measured
Full Summary
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
Some News is Good
Full Summary
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
Inflation Dips and the Economy Smiles
Full Summary
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
A Sign of Recovery
Full Summary
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
More Mixed Messages
Full Summary
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
German Joblessness Grows
Full Summary
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
Passing the Trough
Full Summary
The nation's unemployment rate rose to 5.8 percent in December, the highest rate in 7 years.
(Updated February 13, 2002
Economic Report Card - Inflation is an A
Full Summary
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
CPI Might Spell Less Inflation
Full Summary
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
And Now Deflation?
Full Summary
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
A Bitter Pill
Full Summary
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
Unemployment Turns Up
Full Summary
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
Adding to the Confusion
Full Summary
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
Jobs Down, Confidence Up
Full Summary
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
German Jobless Jolt
Full Summary
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
Signs of Some Slowing 
Full Summary
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
Hard Landing Ahead 
Full Summary
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
Debt and Doubt in Argentina
Full Summary
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
Ricardo Redux
Full Summary
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 behaviorĺan alternate explanation according to David Ricardo.
(Updated November 1, 2000)
Not Much "In" In Inflation
Full Summary 
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)
Withering Wages
Full Summary 
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)
Food for the Fed
Full Summary 
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)
Inflation Creep - Or Has It Become A Crawl?
Full Summary
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)
A Reversal of Spending May Be Fortunate
Full Summary
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)
Searching for a Phillips Curve
Full Summary
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)
It's the Economy - Maybe!
Full Summary
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)
Signs of Moderation
Full Summary
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)
Still Sizzling
Full Summary
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)
Gas Prices Not Fueling Inflation
Full Summary
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)
PPI Signals Confusion
Full Summary
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)
Some Dark Clouds In the Forecast?
Full Summary
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)
Is It Inflation or Isn't It?
Full Summary
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)
June Report Shows No Busting Out
Full Summary
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)
The Forecast for May is Calming
Full Summary
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)
U-Rate Down But So Is Job Growth
Full Summary
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)
Spell Surprise with an ECI
Full Summary
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)
Employment Exceeds Expectations
Full Summary
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)
Employment High -- Jobless Low
Full Summary
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)
The Joint's Still Jumping
Full Summary
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)
Deflating Fears of Deflation
Full Summary
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)
Inflation In Check
Full Summary
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)
The Economy Cools
Full Summary
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)
The Immobility of it All
Full Summary
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)
Steady as She Goes
Full Summary
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)
The Bulls and Their Bounty
Full Summary
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)
To Raise or Not
Full Summary
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)
Holding in the Reins
Full Summary
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)
Measure to Measure
Full Summary
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)
Will the New CPI Measure Up?
Full Summary
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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