Wednesday, July 23, 2014
YOLO COUNTY NEWS
99 CENTS

Employers add 169K jobs; rate falls to 7.3 pct.

By
From page A2 | September 06, 2013 |

WASHINGTON (AP) — The U.S. economy is producing jobs at a still-subpar pace — a trend the Federal Reserve will weigh in deciding this month whether to slow its bond buying and, if so, by how much.

Employers added 169,000 jobs in August but many fewer in June and July than previously thought, the Labor Department said Friday. Combined, June, July and August amounted to the weakest three-month stretch of job growth in a year.

The unemployment rate dropped to 7.3 percent, the lowest in nearly five years. But it fell because more Americans stopped looking for work and were no longer counted as unemployed. The proportion of Americans working or looking for work reached its lowest point in 35 years.

The jobs picture is sure to weigh heavily when the Fed meets Sept. 17-18 to discuss whether to scale back its $85 billion a month in Treasury and mortgage bond purchases. Those purchases have helped keep home-loan and other borrowing rates ultra-low to try to encourage consumers and businesses to borrow and spend more.

Friday’s report “is a mixed bag that can be used to support an immediate tapering of the Fed’s monthly asset purchases or delaying that move until later this year,” said Paul Ashworth, an economist at Capital Economics, said.

The revised job growth for June and July shrank the previously estimated gain for those months by a combined 74,000. July’s gain is now estimated at 104,000 — the fewest in more than a year and down from the previous estimate of 162,000. June’s was revised to 172,000 from 188,000.

In the past three months, employers have added an average of just 148,000 jobs. The average monthly gain for 2013 so far is 180,000, almost identical to the 183,000 average for 2012.

Stocks fell slightly in midmorning trading, but that may have stemmed mainly from tensions over the prospect of U.S. military action against Syria. The Dow Jones industrial average declined about 54 points.

The yield on the 10-year Treasury note fell to 2.92 percent, from 2.95 percent before the jobs report was released at 8:30 a.m. Eastern time. Investors may think the report makes it less likely the Fed will significantly slow its bond purchases.

Ashworth said he still expects the Fed to begin slowing its bond buying later this month. Chairman Ben Bernanke has said the Fed could begin pulling back on its purchases by year’s end if the economy continues to strengthen — and end the purchases by mid-2014.

One possible concern for the Fed is that most of the hiring in August was in lower-paying industries such as retail, restaurants and bars. This continues a trend that emerged earlier this year.

Retailers added 44,000 jobs in August. Hotels, restaurants and bars added 27,000. Temp hiring rose by 13,000.

In higher-paying fields, the report was mixed.

Manufacturers added 14,000, the first gain after five months of declines. Government, which has been a drag on job growth since the recession ended more than four years ago, gained 17,000. It was the biggest such increase in nearly a year. The increase was all in local education departments. Federal employment was unchanged, and state government lost 3,000 jobs.

Auto manufacturers added 19,000 jobs. Americans are buying more cars than at any time since the recession began in December 2007. Some of the jobs also likely reflected workers who were rehired last month after being temporarily laid off in July, when factories switched to new models.

But construction jobs were unchanged in August. And the information industry, which includes high-tech workers, broadcasting and film production, cut 18,000 jobs. The biggest losses were in the film industry.

The report contained some other positive signs: Average hourly earnings picked up, rising 5 cents to $24.05. Hourly pay has risen 2.2 percent in the past 12 months. That’s slightly ahead of the 2 percent inflation rate over the same period.

The average hourly work week ticked up to 34.5 from 34.4, a sign that companies needed more labor. That can lead to larger paychecks.

The modest jobs figures contrast with other recent data that suggested that the economy could be picking up. For example, reports from the Institute for Supply Management, a trade group of purchasing managers, showed that manufacturers expanded at the fastest pace in more than two years last month.

And service firms grew at the quickest pace in more than eight years, the ISM found.

————

By Christopher S. Rugaber, AP economics writer

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

News

 
Second Mellon grant supports Mondavi events

By Jeff Hudson | From Page: A1 | Gallery

Are arachnids awesome or awful? Visit Bohart Museum to find out

By Kathy Keatley Garvey | From Page: A1 | Gallery

 
One hundred years at the State Fair for local shorthorn cow herd

By Elizabeth Case | From Page: A1 | Gallery

 
Police arrest suspect in robbery spree

By Lauren Keene | From Page: A2

Madhavi Sunder joins Davis school board race

By Jeff Hudson | From Page: A2

 
Crews make gains on massive Washington wildfire

By The Associated Press | From Page: A2

 
New safety rules proposed to curb oil train fires

By The Associated Press | From Page: A2

Grandparents support group meets weekly

By Enterprise staff | From Page: A3

 
Kaiser awards grants to Yolo nonprofits

By Special to The Enterprise | From Page: A3

NAMI program offers mental illness information, support

By Enterprise staff | From Page: A3

 
Backpacks for Kids launches annual donation drive

By Enterprise staff | From Page: A3

 
Architecture in Davis, on ‘Davisville’

By Enterprise staff | From Page: A3

Speaker will spin some fishing tales at Davis meeting

By Special to The Enterprise | From Page: A3 | Gallery

 
Kids can paint their own Breyer horses at Davis store

By Enterprise staff | From Page: A3

Car lovers will speak Sunday at gallery

By Enterprise staff | From Page: A4

 
Racial diversity crucial to drug trials, treatments

By San Francisco Chronicle | From Page: A4

Exchange program seeks host families

By Special to The Enterprise | From Page: A4

 
Wine-tastings will benefit YCCC

By Enterprise staff | From Page: A4

Pedro party will benefit Yolo Hospice

By Enterprise staff | From Page: A4

 
Quaff a beer and watch the bats

By Enterprise staff | From Page: A5 | Gallery

Enterprise is focus of Davis Roots talk

By Enterprise staff | From Page: A5

 
.

Forum

They’re pickier than she is

By Creators Syndicate | From Page: B5

 
U.S. is complicit in attack

By Letters to the Editor | From Page: A6, 2 Comments

Extinguish extremism for peace

By Letters to the Editor | From Page: A6, 2 Comments

 
With profound gratitude

By Letters to the Editor | From Page: A6

 
Someday, there will be peace

By Rich Rifkin | From Page: A6

Tom Meyer cartoon

By Debbie Davis | From Page: A6

 
.

Sports

Former Davis man at crossroads: biking or artwork?

By Bruce Gallaudet | From Page: B1 | Gallery

 
Aggie golfer headed to men’s U.S. Amateur Championship

By Special to The Enterprise | From Page: B1 | Gallery

Giants outlast Phillies

By The Associated Press | From Page: B1 | Gallery

 
River Cats nip dogs

By Enterprise staff | From Page: B1

A’s fall in extra innings

By The Associated Press | From Page: B1 | Gallery

 
Blue Jays hitting upends Red Sox

By The Associated Press | From Page: B2

Pyrenees please Nibali, Rogers in Tour Stage 16

By The Associated Press | From Page: B3

 
Albergotti to discuss Armstrong’s doping scandal

By Bruce Gallaudet | From Page: B8

.

Features

Field to Fork: Skyelark Ranch, not a lark at all

By Dan Kennedy | From Page: A8 | Gallery

 
Name droppers: ASUCD hands out awards

By Enterprise staff | From Page: A8 | Gallery

.

Arts

Village Homes to host Rita Hosking Trio

By Enterprise staff | From Page: A7 | Gallery

 
Tomato Festival makes call for young artists

By Enterprise staff | From Page: A7

Additional casting notice for ‘Hello Dolly’

By Enterprise staff | From Page: A7

 
Hear Los Tres de Winters on Thursday

By Enterprise staff | From Page: A7

Picott to play at The Palms Playhouse

By Kate Laddish | From Page: A7

 
Fairy-tale romance in Barnyard Theatre’s ‘Pinky’

By Enterprise staff | From Page: A7

Soar to Neverland with DMTC’s ‘Peter Pan’

By Enterprise staff | From Page: A7 | Gallery

 
.

Business

.

Obituaries

.

Comics

Comics: Wednesday, July 23, 2014

By Creator | From Page: B6