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But... but... this can't BE!

The economy is terrible! Er, isn't it?

Hiring, Wages Up Strongly in December: Financial News - Yahoo! Finance

WASHINGTON (AP) -- Ending 2006 on a positive note, employers boosted hiring and fattened workers' paychecks in December, capping a year in which the country's unemployment rate averaged a six-year low of 4.6 percent.

Maybe not.
The tally of jobs exceeded forecasts and was the most since September. Employment gains also turned out to have been stronger in both October and November with 29,000 more jobs being created in those two months combined than the government had estimated.

Sharing in last month's gains were architectural and engineering outfits, hospitals and doctors' offices, banks, computer design firms, bars and restaurants, hotels and motels, and schools. Those increases swamped job losses in construction and manufacturing that reflected fallout from the troubled housing and automotive sectors. Retailers also cut workers.

"The economy seems to be weathering the storm clouds in the auto and housing industries. Employers are putting out the hiring signs -- though they are not being overly aggressive -- and workers are earning more money," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group.

Pretty much every retail business I've seen lately has had 'Help Wanted' signs up. To me, that means they're having real problems finding folks that will do the work for the wages they're offering (because they can get better elsewhere) ... Low level retail's pretty much a starter or part time job anyway - and if they have joibs going begging that means the pool of available workers must be pretty small.

As far as pay goes...

Workers, many of whom had seen their pay eaten by inflation, saw their average hourly earnings jump to $17.04 in December, a 0.5 percent rise from the prior month.

Over the past 12 months, wages grew by a strong 4.2 percent, a gain last exceeded in November 2000. Wages are now growing faster than consumer prices, which should leave people with more money to spend. That's good for workers and for the economy because consumer spending is a big force driving overall economic activity.

Heh. Give me a 4.5% raise this year, and I'll toss 2% of it into my Roth and help drive overall economic activity with the other 2.5%...

It's really hard to convince myself that things are as bad as they supposedly are.

J.

Comments (6)

F451:

Jerry, this is obviously due to the Democratic victories in last year's elections.

And when the indicators slump, it will be due to Republican obstructionism.

(Or maybe because of the machinations of Emmanuel Goldstein.)

Since Bush took office our Families spendable income has risen tremendously, due to lower taxes, lower interest rates and a stronger economy.

Imagine that.

JLawson:

But under a Democratic administration, Hammer, you've got a guaranteed slot in the poorhouse. And by damn, they'll get you there too...

J.

JLawson:

Ron -

I know you're being sarcastic, but it's all too true. When things turn sour because of tax increases and the like, look to them blaming republican policies for the downturn.

J.

Why, just the other day, Jesse Jackson was complaining about the high unemployment.

Neil Cavuto couldn't believe his ears.

JLawson:

Yeah, I heard that too. Jesse's a scam artist who depends on there being trouble - he CAN'T admit that things are going well. Once his house of cards starts to shake, that's it...

J.

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