11/20/2004

Job Growth

Job growth soared in October, although some economist just believe it shows a "bounce-back" from the hurricanes in September. Although the average work week stayed at 33.8 hours, professional and business services and retail sectors were adding the jobs while there was a job loss in manufacturing. Also, there was an increase of hiring in the construction sector but many are doubtful that it will continue. Interestingly, average pay also increased by 5 cents an hour. Why is labor increasing? Will it continue? What is making more business hire at an increased rate while the amount of hours worked is staying the same?

6 comments:

Max said...

I believe this post is connected to your post “Record Low Dollar.” Because of the lower dollar rate, manufacturing is losing profits, therefore cutting jobs, but the service industry is increasing because of the increase in foreign tourists.

Maudi said...

There is no doubt about it, the job market is slowing comming back. Companies are starting to pickup and businesses especially in the construcion industry are as busy as ever. However, will all these people entering into the construction area it is economic policy that there has to be a point where the market becomes to saturated and cannot handle all of these workers and then only the strong will survive. I worry about those guys who think that there will always be work for them.

Maudi said...

There is no doubt about it, the job market is slowing comming back. Companies are starting to pickup and businesses especially in the construcion industry are as busy as ever. However, will all these people entering into the construction area it is economic policy that there has to be a point where the market becomes to saturated and cannot handle all of these workers and then only the strong will survive. I worry about those guys who think that there will always be work for them.

Rufio said...

I would have to follow the economists on this one and say that the reason there has been this increase in labor is because the nation is in a rebuilding phase where the recent hurricanes hit. The real question is when will this labor increase peak and begin to fall. Another reason we may be having this increase in labor is due to the fact that more people are going out to get a job because the pay is good and the work week is short. Therefore employers can hire more people at a higher rate because they aren't working as many hours in a week. I'm really not sure, but I really hope this trend will last.

Jake said...

Maudi made a good point asking what happens when the needs for construction workers goes down? Obviously homes and buildings will continue to be built, but not at the demand it is now with the circumstances in Florida needing an increased amount of laborers. The job market can be unpredicatable , not knowing what jobs are going to be available next.

Dr. Tufte said...

-1 for spelling mistakes in Miles' post and Maudi's comment.

Too much is made of monthly employment data like this. The fluctuations from month-to-month are just too large. We should be looking at something like a moving-average (and experienced people do). But you can't get the media to pick up on that.