posted 11-05-2005 03:07 PM
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France holds talks over riots
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Study finds fish is 'brain food'
Urban unrest outside Paris
Vegas mayor has plan for 'taggers'
Why new film worries Wal-Mart
A new dog breed: The puggle
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WASHINGTON — U.S. job growth nearly stalled last month, the Labor Department reported Friday, suggesting that employers had become more cautious about hiring because of high energy prices.
The nation's unemployment rate dipped to 5 percent in October from 5.1 percent in September, and it has averaged 5 percent for the last five months.
Employers added just 56,000 jobs, only about a third of the number needed to keep up with population growth, many economists say. That gain left the total number of payroll jobs "little changed," said Kathleen Utgoff, commissioner of the department's Bureau of Labor Statistics.
"The relatively weak increase" was not due to the direct effects of the three powerful hurricanes that struck the Southeast since late August, Utgoff said in a statement. Rather, she said, job growth in the rest of the country appeared to have slowed, possibly because of the surge in energy prices caused by hurricanes Katrina and Rita.
"The U.S. economy continues to roll along, but the one-two punch of hurricanes and energy costs have definitely made it wobble," said William Cheney, chief economist of John Han**** Financial Services.
Katrina hit in late August, followed by Rita in late September. Both pummeled the Gulf Coast, damaging oil rigs, refineries and pipelines, sending prices soaring for gasoline, diesel fuel, jet fuel and natural gas. Hurricane Wilma ripped across Florida last month, but it had no effect on the employment report because it hit after the data was collected.
More than 521,000 workers have filed new claims for unemployment-insurance benefits since early September because of job losses directly related to the three storms, the department said Friday.
Job growth was essentially flat in September, largely because of the damage inflicted by Katrina and Rita, which wiped out thousands of workplaces and forced thousands of workers out of their homes. But hiring remained brisk in September outside of the Gulf region, the department said.
Oil and gasoline prices have eased since September but remain high enough to cause many consumers to cut back on other spending and to prompt employers to think twice about hiring more workers.
Auto dealers, department stores, clothing boutiques, hotels, bars and restaurants all cut jobs last month, the department reported, after adjusting for seasonal variations.
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The decline in auto-dealership employment mirrored the plunge in vehicle sales last month following a summer of torrid sales.
The job losses in hotels, restaurants and retailing "may simply reflect the tribulations of the tourist industry in the Gulf Coast region, but it may also be a sign of consumers finally reacting to the impact of energy costs on their discretionary spending power," Cheney said.
Cheney and other analysts agreed that the employment report will not deter the Federal Reserve from raising its benchmark short-term interest rate again at its next meeting Dec. 13 to keep inflation under control.
Price increases have remained tame outside of food and energy items, but Fed officials worry that high energy prices will cause businesses to try to raise prices and may make consumers more willing to accept price hikes, fueling higher inflation. Raising interest rates tends to dampen spending, which discourages price increases.
The Fed raised its rate Tuesday and said in a statement the hurricanes have only temporarily reduced national employment and economic activity. Fed officials also noted that reconstruction efforts in the damaged areas will boost economic growth in coming months.
Indeed, the construction industry added 33,000 jobs last month, a bit above the average gain of about 20,000 a month for the previous six months, noted Ray Stone, an economist at Stone & McCarthy Research Associates.
This suggests "at least some of the post-hurricane rebuilding is under way," Stone said in an analysis for clients. "We suspect that further and potentially much larger gains in construction payrolls are likely."
The unemployment rate fell for white workers to 4.4 percent in October from 4.5 percent in September, the Labor Department said. The rate for black workers declined to 9.1 percent from 9.4 percent. The rate for Latinos slid to 5.8 percent from 6.5 percent.
Average weekly wages for most workers rose $2.71 to $549.93. That is not adjusted for inflation because the department has not yet released the inflation rate for October.
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Saturday, November 05, 2005
TODAY ON MSN
Driver busted in HOV lane with legless doll
Offer: Holiday airfares
Finding a minivan
When quitting your job is not an option
< backnext >MSNBC NEWS
France holds talks over riots
Anti-U.S. protests at summit
Hunt for Death Row escapee
Tiny house?
10 tips to make it seem bigger
SPORTS BY FOX SPORTS
Eagles punish, bench Owens
Live: College football scores
SPOTLIGHT
ALSO ON MSN
Shop: Essentials for Turkey Day
Ford shows new concepts for SUVs
The resurrection of 2 'dot-bombs'
Find romantic date spots in 25 cities
How low can 'bad' cholesterol go?
VIDEO HIGHLIGHTS
Study finds fish is 'brain food'
Urban unrest outside Paris
Vegas mayor has plan for 'taggers'
Why new film worries Wal-Mart
A new dog breed: The puggle
ENTERTAINMENT
Review: 'Jarhead' vivid, smart
Taylor dedicates AIDS center
Clooney denies shoving guard
Aniston dishes about divorce
Photos: 50 Cent on the big screen
LOCAL INFORMATION
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Technology gift guides - CompUSA
Get ink or toner. Save up to 75%
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November Liquidation - up to 75% off
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Saturday, November 05, 2005
TODAY ON MSN
Driver busted in HOV lane with legless doll
Offer: Holiday airfares
Finding a minivan
When quitting your job is not an option
< backnext >MSNBC NEWS
France holds talks over riots
Anti-U.S. protests at summit
Hunt for Death Row escapee
Tiny house?
10 tips to make it seem bigger
SPORTS BY FOX SPORTS
Eagles punish, bench Owens
Live: College football scores
SPOTLIGHT
ALSO ON MSN
Shop: Essentials for Turkey Day
Ford shows new concepts for SUVs
The resurrection of 2 'dot-bombs'
Find romantic date spots in 25 cities
How low can 'bad' cholesterol go?
VIDEO HIGHLIGHTS
Study finds fish is 'brain food'
Urban unrest outside Paris
Vegas mayor has plan for 'taggers'
Why new film worries Wal-Mart
A new dog breed: The puggle
ENTERTAINMENT
Review: 'Jarhead' vivid, smart
Taylor dedicates AIDS center
Clooney denies shoving guard
Aniston dishes about divorce
Photos: 50 Cent on the big screen
LOCAL INFORMATION
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Giant shoe sale: 20% offGet the house ready for guests
Technology gift guides - CompUSA
Get ink or toner. Save up to 75%
JCPenney: Save 30-60% today
AVON: Free ship with any order
Free ship on furniture - Target.com
Overstock.com bargains
November Liquidation - up to 75% off
$1.00 sitewide shipping - shop now
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Dow 10,530.76 + 8.17
NASDAQ 2,169.43 + 9.21
S&P 1,220.14 + 0.20
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Wal-Mart lowers costs at a price, studies find
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Jessica Simpson
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Why does MSN look like this?
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Why does MSN look like this? Your browser cannot find our style and presentation information. You are welcome to use the page as is, or upgrade your browser to its latest version. If you are using Microsoft Internet Explorer, go to the Microsoft Internet Explorer website to install the latest version. If you are using another browser, see its website for more information.
Learn more about Windows Live Instant Answer: What's the birth flower for November?Change colors:Simple WhiteClassic BlueMake MSN my home pageSelect a Category:WebNewsImagesDesktopEncartaLocalSearch the Web
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Saturday, November 05, 2005
TODAY ON MSN
Driver busted in HOV lane with legless doll
Offer: Holiday airfares
Finding a minivan
When quitting your job is not an option
< backnext >MSNBC NEWS
France holds talks over riots
Anti-U.S. protests at summit
Hunt for Death Row escapee
Tiny house?
10 tips to make it seem bigger
SPORTS BY FOX SPORTS
Eagles punish, bench Owens
Live: College football scores
SPOTLIGHT
ALSO ON MSN
Shop: Essentials for Turkey Day
Ford shows new concepts for SUVs
The resurrection of 2 'dot-bombs'
Find romantic date spots in 25 cities
How low can 'bad' cholesterol go?
VIDEO HIGHLIGHTS
Study finds fish is 'brain food'
Urban unrest outside Paris
Vegas mayor has plan for 'taggers'
Why new film worries Wal-Mart
A new dog breed: The puggle
ENTERTAINMENT
Review: 'Jarhead' vivid, smart
Taylor dedicates AIDS center
Clooney denies shoving guard
Aniston dishes about divorce
Photos: 50 Cent on the big screen
LOCAL INFORMATION
Find restaurants, bars, news, weather and more ...
Enter ZIP code:
MSN SERVICES
E-mail SolutionsMSN MessengerMSN MusicMSN PremiumMSN Search ToolbarMSN 9 Dial-upHOTMAILMESSENGERMY MSNSIGN IN
AdvertisementAd feedback SHOPPING
Giant shoe sale: 20% offGet the house ready for guests
Technology gift guides - CompUSA
Get ink or toner. Save up to 75%
JCPenney: Save 30-60% today
AVON: Free ship with any order
Free ship on furniture - Target.com
Overstock.com bargains
November Liquidation - up to 75% off
$1.00 sitewide shipping - shop now
MONEY
Dow 10,530.76 + 8.17
NASDAQ 2,169.43 + 9.21
S&P 1,220.14 + 0.20
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Quotes delayed 20 min.Financial News
Wal-Mart lowers costs at a price, studies find
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Better driver: soccer mom or lawyer?
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Top 5 Searches
Jessica Simpson
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Angelina Jolie
Massive black hole
CIA leak
Suggested Searches
News: Rootkits
Images: Puggle
Johnny Cash
Morning-after pill
Nicolaus Copernicus
WASHINGTON — U.S. job growth nearly stalled last month, the Labor Department reported Friday, suggesting that employers had become more cautious about hiring because of high energy prices.
The nation's unemployment rate dipped to 5 percent in October from 5.1 percent in September, and it has averaged 5 percent for the last five months.
Employers added just 56,000 jobs, only about a third of the number needed to keep up with population growth, many economists say. That gain left the total number of payroll jobs "little changed," said Kathleen Utgoff, commissioner of the department's Bureau of Labor Statistics.
"The relatively weak increase" was not due to the direct effects of the three powerful hurricanes that struck the Southeast since late August, Utgoff said in a statement. Rather, she said, job growth in the rest of the country appeared to have slowed, possibly because of the surge in energy prices caused by hurricanes Katrina and Rita.
"The U.S. economy continues to roll along, but the one-two punch of hurricanes and energy costs have definitely made it wobble," said William Cheney, chief economist of John Han**** Financial Services.
Katrina hit in late August, followed by Rita in late September. Both pummeled the Gulf Coast, damaging oil rigs, refineries and pipelines, sending prices soaring for gasoline, diesel fuel, jet fuel and natural gas. Hurricane Wilma ripped across Florida last month, but it had no effect on the employment report because it hit after the data was collected.
More than 521,000 workers have filed new claims for unemployment-insurance benefits since early September because of job losses directly related to the three storms, the department said Friday.
Job growth was essentially flat in September, largely because of the damage inflicted by Katrina and Rita, which wiped out thousands of workplaces and forced thousands of workers out of their homes. But hiring remained brisk in September outside of the Gulf region, the department said.
Oil and gasoline prices have eased since September but remain high enough to cause many consumers to cut back on other spending and to prompt employers to think twice about hiring more workers.
Auto dealers, department stores, clothing boutiques, hotels, bars and restaurants all cut jobs last month, the department reported, after adjusting for seasonal variations.
\n'); } if ( plugin ) { document.write(' '); } else if (!(navigator.appName && navigator.appName.indexOf("Netscape")>=0 && navigator.appVersion.indexOf("2.")>=0)) {document.write(' '); } //-->
The decline in auto-dealership employment mirrored the plunge in vehicle sales last month following a summer of torrid sales.
The job losses in hotels, restaurants and retailing "may simply reflect the tribulations of the tourist industry in the Gulf Coast region, but it may also be a sign of consumers finally reacting to the impact of energy costs on their discretionary spending power," Cheney said.
Cheney and other analysts agreed that the employment report will not deter the Federal Reserve from raising its benchmark short-term interest rate again at its next meeting Dec. 13 to keep inflation under control.
Price increases have remained tame outside of food and energy items, but Fed officials worry that high energy prices will cause businesses to try to raise prices and may make consumers more willing to accept price hikes, fueling higher inflation. Raising interest rates tends to dampen spending, which discourages price increases.
The Fed raised its rate Tuesday and said in a statement the hurricanes have only temporarily reduced national employment and economic activity. Fed officials also noted that reconstruction efforts in the damaged areas will boost economic growth in coming months.
Indeed, the construction industry added 33,000 jobs last month, a bit above the average gain of about 20,000 a month for the previous six months, noted Ray Stone, an economist at Stone & McCarthy Research Associates.
This suggests "at least some of the post-hurricane rebuilding is under way," Stone said in an analysis for clients. "We suspect that further and potentially much larger gains in construction payrolls are likely."
The unemployment rate fell for white workers to 4.4 percent in October from 4.5 percent in September, the Labor Department said. The rate for black workers declined to 9.1 percent from 9.4 percent. The rate for Latinos slid to 5.8 percent from 6.5 percent.
Average weekly wages for most workers rose $2.71 to $549.93. That is not adjusted for inflation because the department has not yet released the inflation rate for October.Why does MSN look like this?
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Driver busted in HOV lane with legless doll
Offer: Holiday airfares
Finding a minivan
When quitting your job is not an option
< backnext >MSNBC NEWS
France holds talks over riots
Anti-U.S. protests at summit
Hunt for Death Row escapee
Tiny house?
10 tips to make it seem bigger
SPORTS BY FOX SPORTS
Eagles punish, bench Owens
Live: College football scores
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Ford shows new concepts for SUVs
The resurrection of 2 'dot-bombs'
Find romantic date spots in 25 cities
How low can 'bad' cholesterol go?
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Study finds fish is 'brain food'
Urban unrest outside Paris
Vegas mayor has plan for 'taggers'
Why new film worries Wal-Mart
A new dog breed: The puggle
ENTERTAINMENT
Review: 'Jarhead' vivid, smart
Taylor dedicates AIDS center
Clooney denies shoving guard
Aniston dishes about divorce
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WASHINGTON — U.S. job growth nearly stalled last month, the Labor Department reported Friday, suggesting that employers had become more cautious about hiring because of high energy prices.
The nation's unemployment rate dipped to 5 percent in October from 5.1 percent in September, and it has averaged 5 percent for the last five months.
Employers added just 56,000 jobs, only about a third of the number needed to keep up with population growth, many economists say. That gain left the total number of payroll jobs "little changed," said Kathleen Utgoff, commissioner of the department's Bureau of Labor Statistics.
"The relatively weak increase" was not due to the direct effects of the three powerful hurricanes that struck the Southeast since late August, Utgoff said in a statement. Rather, she said, job growth in the rest of the country appeared to have slowed, possibly because of the surge in energy prices caused by hurricanes Katrina and Rita.
"The U.S. economy continues to roll along, but the one-two punch of hurricanes and energy costs have definitely made it wobble," said William Cheney, chief economist of John Han**** Financial Services.
Katrina hit in late August, followed by Rita in late September. Both pummeled the Gulf Coast, damaging oil rigs, refineries and pipelines, sending prices soaring for gasoline, diesel fuel, jet fuel and natural gas. Hurricane Wilma ripped across Florida last month, but it had no effect on the employment report because it hit after the data was collected.
More than 521,000 workers have filed new claims for unemployment-insurance benefits since early September because of job losses directly related to the three storms, the department said Friday.
Job growth was essentially flat in September, largely because of the damage inflicted by Katrina and Rita, which wiped out thousands of workplaces and forced thousands of workers out of their homes. But hiring remained brisk in September outside of the Gulf region, the department said.
Oil and gasoline prices have eased since September but remain high enough to cause many consumers to cut back on other spending and to prompt employers to think twice about hiring more workers.
Auto dealers, department stores, clothing boutiques, hotels, bars and restaurants all cut jobs last month, the department reported, after adjusting for seasonal variations.
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The decline in auto-dealership employment mirrored the plunge in vehicle sales last month following a summer of torrid sales.
The job losses in hotels, restaurants and retailing "may simply reflect the tribulations of the tourist industry in the Gulf Coast region, but it may also be a sign of consumers finally reacting to the impact of energy costs on their discretionary spending power," Cheney said.
Cheney and other analysts agreed that the employment report will not deter the Federal Reserve from raising its benchmark short-term interest rate again at its next meeting Dec. 13 to keep inflation under control.
Price increases have remained tame outside of food and energy items, but Fed officials worry that high energy prices will cause businesses to try to raise prices and may make consumers more willing to accept price hikes, fueling higher inflation. Raising interest rates tends to dampen spending, which discourages price increases.
The Fed raised its rate Tuesday and said in a statement the hurricanes have only temporarily reduced national employment and economic activity. Fed officials also noted that reconstruction efforts in the damaged areas will boost economic growth in coming months.
Indeed, the construction industry added 33,000 jobs last month, a bit above the average gain of about 20,000 a month for the previous six months, noted Ray Stone, an economist at Stone & McCarthy Research Associates.
This suggests "at least some of the post-hurricane rebuilding is under way," Stone said in an analysis for clients. "We suspect that further and potentially much larger gains in construction payrolls are likely."
The unemployment rate fell for white workers to 4.4 percent in October from 4.5 percent in September, the Labor Department said. The rate for black workers declined to 9.1 percent from 9.4 percent. The rate for Latinos slid to 5.8 percent from 6.5 percent.
Average weekly wages for most workers rose $2.71 to $549.93. That is not adjusted for inflation because the department has not yet released the inflation rate for October.
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