Sunday, January 25, 2015
YOLO COUNTY NEWS
99 CENTS

Economy adds 163,000 jobs

By
From page A2 | August 03, 2012 |

WASHINGTON (AP) — U.S. employers added 163,000 jobs in July, a hopeful sign after three months of sluggish hiring.

The Labor Department said Friday that the unemployment rate rose to 8.3 percent from 8.2 percent in June.

July’s hiring was the best since February. Still, the economy has added an average of 151,000 jobs a month this year — enough to keep up with population growth but not enough to drive down the unemployment rate.

“After a string of disappointing economic reports … we’ll certainly take it,” said James Marple, senior economist at TD Economics.

Stocks rose sharply in early trading. The Dow Jones industrial average added 219 points to 13,098, while the broader Standard & Poor’s 500 index rose 125 points to 1,390.

The government uses two surveys to measure employment. A survey of businesses showed job gains. The unemployment rate comes from a survey of households and is calculated by dividing the number of unemployed people by the size of the labor force. In July, more people said they were unemployed, while the size of the labor force shrank even more.

Economists say the business survey is more reliable.

Stronger job creation could help President Barack Obama’s re-election hopes. Still, the unemployment rate has been above 8 percent since his first month in office — the longest stretch on record. No president since World War II has faced re-election with unemployment over 8 percent.

A better outlook on hiring could make the Federal Reserve reluctant to take more action to spur growth. The Fed, which ended a two-day policy meeting Wednesday, signaled in a statement a growing inclination to take further steps if hiring doesn’t pick up.

But some economists say the job gains need to be greater.

Paul Ashworth, senior U.S. economist for Capital Economics, said July’s job gains were a “vast improvement” over the past four months. Still, they were well below the average 252,000 jobs a month added from December through February.

“It also isn’t strong enough to drive the unemployment rate lower, which is what the Fed really wants to see. So, on balance, we doubt this would be enough to persuade the Fed to hold fire in September,” Ashworth said.

The job gains were broad-based. Manufacturing added 25,000 jobs, the most since March. Restaurants and bars added 29,000. Retailers hired 7,000 more workers. Education and health services gained 38,000. Governments cut 9,000 positions.

Average hourly wages also increased by 2 cents to $23.52 an hour. Over the past year wages have increased 1.7 percent — matching the rate of inflation.

Despite July’s gains, the economy remains weak more than three years after economists declared the recession had ended in June 2009. Growth slowed to an annual rate of 1.5 percent in the April-June quarter, down from 2 percent in the first quarter and 4.1 percent in the final three months of 2011.

Manufacturing activity shrank for the second straight month in July, a private survey said Wednesday. Consumer confidence improved slightly last month but remains weak.

Rising pessimism about the future is taking a toll on businesses and consumers, many economists say. Europe’s financial crisis has weakened that region’s economy, hurting U.S. exports. Worries have also intensified that the U.S. economy will fall off a “fiscal cliff” at the end of the year. That’s when tax increases and deep spending cuts will take effect unless Congress reaches a budget deal. A recession could follow, Fed Chairman Ben Bernanke has warned.

Americans are responding by spending less and saving more. A big reason growth slowed in the second quarter was that consumer spending, which accounts for roughly 70 percent of economic activity, slowed to an annual growth rate of 1.5 percent. That was down from 2.4 percent in the first quarter.

————

By Christopher S. Rugaber, AP economics writer

Comments

comments

The Associated Press

.

News

 
Four days of unusual, adventuresome music

By Jeff Hudson | From Page: A1 | Gallery

Red Cross honors community heroes

By Lauren Keene | From Page: A1 | Gallery

 
Bridges of Yolo County: Wear, tear … repair?

By Elizabeth Case | From Page: A1 | Gallery

Abe ‘speechless’ after video claims IS hostage dead

By The Associated Press | From Page: A2

 
GOP presses state bills limiting gay rights before ruling

By The Associated Press | From Page: A2

Abortion opponents express renewed hope at California rally

By The Associated Press | From Page: A2

 
Spanish police arrest 4 suspected members of a jihadi cell

By The Associated Press | From Page: A2

Rockets kill 30 in Ukrainian city as rebels launch offensive

By The Associated Press | From Page: A2

 
Fake schools draw federal scrutiny

By The Associated Press | From Page: A3 | Gallery

Winter produce available at Sutter market

By Special to The Enterprise | From Page: A3

 
Sip wines at St. James’ annual tasting

By Special to The Enterprise | From Page: A3

 
Donations to be distributed during homeless count

By Anne Ternus-Bellamy | From Page: A4

Speaker will share computer security tips

By Enterprise staff | From Page: A4

 
Logos Books celebrates 5 years, offers language groups

By Enterprise staff | From Page: A4

Australian olive oil company opens U.S. headquarters in Woodland

By Special to The Enterprise | From Page: A4

 
Explore at the YOLO Outdoor Expo

By Enterprise staff | From Page: A4

 
Pedal around Davis on weekly bike ride

By Enterprise staff | From Page: A4

Yolo animal shelter seeking rawhide donations

By Lauren Keene | From Page: A5

 
Woodland Healthcare employees take Great Kindness Challenge

By Special to The Enterprise | From Page: A5

At the Pond: Nest boxes give birds new homes

By Jean Jackman | From Page: A6 | Gallery

 
California ranks worst in nation for guidance counselors

By The Associated Press | From Page: A7

Davis, Woodland are saving water

By Elizabeth Case | From Page: A12

 
Music and Words Festival events

By Jeff Hudson | From Page: A12

.

Forum

Caring for the aging mouth

By Samer Alassaad | From Page: A8

 
Family isn’t keen on relationship

By Creators Syndicate | From Page: A8

 
We have the right to choose

By Letters to the Editor | From Page: A10

 
We don’t have to suffer

By Letters to the Editor | From Page: A10

City helped immensely

By Letters to the Editor | From Page: A10

 
Rick McKee cartoon

By Debbie Davis | From Page: A10

Big utilities’ nightmare begins to play out

By Tom Elias | From Page: A10

 
Mayor’s Corner: Let’s renew Davis together

By Dan Wolk | From Page: A10

From innovation parks to innovative buildings and planning

By Special to The Enterprise | From Page: A11

 
When measles spreads from Disneyland, it’s a small world after all

By New York Times News Service | From Page: A11

.

Sports

Loud crowd sees DHS boys win

By Spencer Ault | From Page: B1 | Gallery

 
Lady Devils hold off Pacers, stay perfect in league

By Enterprise staff | From Page: B1

Wildcats’ inaugural kids development league exceeds expectations

By Bruce Gallaudet | From Page: B1 | Gallery

 
Aggies get top 2015 gymnastics score, but fall short

By Bruce Gallaudet | From Page: B1 | Gallery

UCD men take two tennis matches

By Enterprise staff | From Page: B8

 
Watney in ninth at Humana Challenge

By Staff and wire reports | From Page: B8

.

Features

.

Arts

.

Business

Davis man focusing on cannabidiol business

By Will Bellamy | From Page: A9

 
Marrone Bio’s Regalia approved for new uses in Canada

By Special to The Enterprise | From Page: A9

 
UCD grad makes insurance ‘hot 100′ list

By Enterprise staff | From Page: A9

Yolo County real estate sales

By Zoe Juanitas | From Page: A9

 
.

Obituaries

Thomas George Byrne

By Special to The Enterprise | From Page: A4

 
.

Comics

Comics: Sunday, January 25, 2015

By Creator | From Page: B8