Posts for May 10, 2010

May 10, 2010

Last week's economic news was fairly positive, with seven of the 11 major economic reports improving. (To read all of last week's indicators, see the Latest Economic Reports section below.)
Most important, Friday's employment report showed that employment accelerated in April and added 290,000 jobs (see chart above). This was the fastest monthly gain in four years.

The fact that 10 of the 12 major private sectors of the economy added employment in April, up from nine in March and six in February, indicates that employers are increasingly becoming confident enough to start hiring workers. Also, the April report included positive revisions that increased employment by 121,000 in February and March.

Up for a fourth consecutive month, manufacturing employment increased by 44,000 to a level of 11.6 million in April, bringing the 2010 gains so far to 101,000, the biggest four-month gain in a dozen years. The manufacturing employment gain was diffuse, with 19 of the 21 major industries adding jobs.

While the April rise in employment was more robust than expected, the unemployment rate increased to 9.9 percent, which will likely weigh on consumer confidence in the near term. Unfortunately, this dichotomy of a simultaneous increase in both employment and the unemployment rate will likely continue in the months ahead. Those who were previously out of the workforce and re-entered as unemployed rose by 195,000 and accounted for a quarter of the unemployed in April. Over the past year, more than 2 million workers have left the workforce. As these workers resume searching for employment, they initially will be counted as unemployed and will elevate the unemployment rate until they find a job. Thus, a temporary rise in the unemployment rate back above 10 percent is a real possibility in the near term.

Dave Huether

Chief Economist

National Association of Manufacturers

FIRST QUARTER RESULTS SHOW HOME CONSTRUCTION IN UTAH IS ON THE RISE

May 10, 2010 – Daily Pulse
Permits issued for single family homes in 2010 is up 110 percent from 2009
The Bureau of Economic and Business Research (BEBR) at the David Eccles School of Business reports that the number of single-family home permits issued in Utah for the first-quarter is up 110 percent over the first quarter of 2009.
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