[PEN-L:11629] BLS Daily Report

[Richardson_D <Richardson_D@xxxxxxx>]

BLS DAILY REPORT, THURSDAY, SEPTEMBER 23, 1999

TODAY'S NEWS RELEASE:  In July 1999, there were 1,742 mass layoff actions by
employers as measured by new filings for unemployment insurance benefits
during the month.  Each action involved at least 50 persons from a single
establishment, and the number of workers involved totaled 221,605.  Both the
number of layoff events and the number of initial claimants for unemployment
insurance were lower in July 1999 than in July 1998, when three were
strike-related plant shutdowns in the transportation equipment and
electronic equipment industries. ...

Between April and June, there were 1,430 mass layoff actions by employers,
resulting in 286,436 workers being separated from their jobs fore more than
30 days, according to data released by BLS. ...  (Daily Labor Report, page
A-11).

Reports from the Federal Reserve's 12 district banks indicate that, even as
higher interest rates blunted housing growth in some areas, the pace of
economic growth remained brisk in all regions, without many new signs of
inflation pressures, the Fed reports in its latest "beige book." ...Recent
increases in mortgage interest rates, which have since gone back down below
8 percent, began to dampen what had been very brisk housing sales and
construction in virtually every region.  But most Fed districts continued to
report housing activity at very high levels.  At the same time that housing
eased in some areas, manufacturing gains picked up during August and the
first part of September. ...  (Daily Labor Report, page D-1)_____Demand for
new employees eased in parts of the country by mid-September even though
most regions were enjoying moderate to brisk rates of economic growth.  The
central bank said there were few reports of accelerating wages, and consumer
prices were well behaved.  But it reported more pressure on wholesale prices
in a reference that was likely to keep inflation worries alive before the
Fed's next meeting on interest rates on Oct. 5 (Washington Post, page
E8)_____There were few reports of acceleration in nominal wages and
salaries, although several banks reported increases in the employer costs of
health care benefits. ...  (New York Times, page C14; Wall Street Journal,
page A2; USA Today, page 3B).

The burgeoning U.S. economy needs to be restrained to forestall a revival of
inflation and trim the nation's record high trade deficit, the International
Monetary Fund says.  The imbalance between the rates of growth among the
industrialized economies is now the distinguishing -- and potentially most
harmful -- characteristic of the global economy in the wake of recent
crises, the IMF says. While new projections by IMF economists confirm
evidence that Asia and Europe -- with the notable exceptions of Germany and
Italy -- are on the path of stronger economic growth, the chief concern in
the latest report is the risk posed to this scenario by an overheated U.S.
economy.

Only a few years ago, the Pentagon was slimming down and had so many willing
recruits that it raised its qualifications standards.  Now volunteers are in
such short supply that the long-term viability of the United States vaunted
all-volunteer force is in question.  Recruiters are working harder than
ever, often putting in 65-hour weeks.  But they are chasing an
ever-shrinking pool of high school students willing even to consider a
military career.  The reasons are many:  The economy is surging, so more
attractive opportunities abound.  States have spent billions building up
vast community college systems, giving millions more high school graduates
access to post-secondary education.  Many of today's parents never served or
were alienated by the Vietnam War; thus their children have little or no
emotional connection to the military.  And as the Cold War and the Gulf War
have given way to peacekeeping missions of uncertain duration in
unattractive locations, a career in uniform has become a much harder sell.
For the first time since 1979, both the Air Force and the Army can't find
enough people to fill the ranks.  The Navy came up 7,000 recruits short of
its target last year of about 55,000, so it decided to accept a larger
number of recruits who didn't graduate from high school to meet this year's
goals.  Only the Marines, the smallest of the forces, is meeting its
relatively modest goals without much trouble.  Overall, the Department of
Defense is 7 percent behind its recruitment goals this fiscal year -- the
largest shortfall in years -- leaving it more than 9,000 recruits short and
struggling to fulfill its missions with fewer and in some cases less
qualified troops. ...  (Wall Street Journal, page A1).

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