By Lucia Mutikani – The number of Americans filing new claims for unemployment benefits tumbled to a five-year low last week, a hopeful sign for the sluggish labor market.
“This is a good sign for the January nonfarm payrolls,” said David Sloan, an economist at 4CAST in New York.
While last week’s decline ended four straight weeks of increases, it may not signal a material shift in labor market conditions as claims tend to be very volatile around this time of the year. more> http://tinyurl.com/b5374nu
Automatic Data Processing
(Photo credit: Wikipedia)
Reuters – Automatic Data Processing (ADP.O) said on Wednesday (Oct 24) it had made the changes to its private job market report as part of a new partnership with Moody’s Analytics.
The report will include an increased number of industry categories and business sizes, ADP said. It will use a larger sample size and new methodology to further align it with the final revised readings from the Bureau of Labor Statistics.
ADP’s monthly figures are typically released a couple days ahead of the government’s report. more> http://tinyurl.com/8bvogp2
President Barack Obama, left, flanked by Treasury Secretary Timothy Geithner, and Federal Reserve Chairman Ben Bernanke, and Vice President Joseph Biden, right, receive an Economic Briefing, Monday, March 23, 2009, in the Cabinet Room of the White House in Washington. (Photo credit: Wikipedia)
By Peter Schroeder – The Fed chairman has not won any friends among Republicans for his efforts to boost the economy, which have included three rounds of “quantitative easing.”
The massive bond purchases have sent stock markets soaring, but conservatives fret that the Fed’s rapidly-expanding portfolio is going to be a nightmare to unwind and could result in severe inflation.
Bernanke‘s Fed agreed in September to buy $40 billion of mortgage bonds a month, and to continue doing so even after the labor market picks up the pace. more> http://tinyurl.com/8oau6dq
By Gary Burtless – Can we bribe employers to increase their payrolls? Many economists, including me, think we can and should, particularly when the job market is in the doldrums. The crucial question is how to design the bribe so it is as cheap and effective as possible.
One idea pushed by economists is to establish a temporary tax subsidy for employers who add to their payrolls.
A simple way to minimize payments to employers is to limit subsidies to those workers who represent net additions to an employer’s payroll. If an employer had 100 workers on its payroll last year, it must have at least 101 this year before obtaining any subsidy. For most employers, this requirement is straightforward to enforce because payrolls must be reported to the unemployment insurance system on a regular basis. more> http://is.gd/5cdHFy