Posts for March 8, 2010

March 8, 2010

Similar to last week's Monday Economic Report, this week's report, which mostly contains statistics on the first two months of 2010, was a mixed bag. Of the eleven economic reports that came out last week, six improved, two slowed, and three declined. Evidence is mounting that while the expansion is continuing, it is on a decelerating trajectory from the near 6-percent annualized growth attained in the fourth quarter of last year. (To see all of last week's indicators, see the Latest Economic Reports section below.)

Given the severe winter storms last month, some of last week's reports, such as falling sales of motor vehicles and a rather large decline in construction employment, were not surprising. At the same time, there were some upside weather-related surprises: sales at chain stores actually increased for a third consecutive month in February; the overall 36,000 drop in employment last month was milder than expected; and the unemployment rate remained unchanged (see chart above).

Also, following a gain of 20,000 in January, the fact that manufacturing employment remained essentially unchanged, rising by 1,000, is at least a moderately encouraging sign that the cumulative 2.2 million decline in manufacturing employment during the past two years may finally be coming to an end.

However, some of the positive reports last week were actually troubling under the surface, namely the headline report that January factory orders had their best performance in four months. In fact, most of this gain was due to aircraft orders, which are extremely volatile from month to month. A cause for concern is that new orders and shipments for core capital goods were revised down from the advanced report which came out late last month. This signals that business investment is on course to slow significantly from the increase in the fourth quarter.

Dave Huether

Chief Economist

National Association of Manufacturers

NEW TAX RULING COULD BE GOOD FOR EMPLOYEES AND YOU

March 8, 2010 – BusinessBrief.com

Employers who require their people to wear specific clothing while on the clock will want to make note of a new ruling from Internal Revenue Service. more... at the following link http://www.businessbrief.com/new-tax-ruling-could-be-good-for-employees-and-you/

CONSUMERS, EMPLOYERS IN STALEMATE OVER SPENDING

March 8, 2010 – Today in Manufacturing.net

Employers and consumers are both waiting for the other to spend more, and until then economic recovery will be shaky and job openings will be few... continue the article at this link http://www.manufacturing.net/article.aspx?id=245660

GERMAN INDUSTRIAL OUTPUT EDGES UPWARD

March 8, 2010 – Today in Manufacturing.net

Economy Ministry said industrial output rose 0.6 percent in January as an increase in manufacture of parts and components offset decline in construction... continue this article at this link http://www.manufacturing.net/article.aspx?id=245642

The National Association of Manufacutrers Labor Policy Institute

March 8, 2010 - NAM

“In terms of the NLRB, we’re going to get it done. In the fight for EFCA, we’ve got to sit down and figure out where we go from here…. I think we’re going to get it done.”
-Vice President Joe Biden 3/1/2010 at the AFL-CIO’s Winter Meeting

Card Check Legislation / NLRB Nominees

• During last week’s AFL-CIO annual meeting, numerous Administration officials pledged support for organized labor’s highest priorities; including the passage the Employee “FORCED” Choice Act (EFCA) and seating Craig Becker on the powerful National Labor Relations Board (NLRB). The Administration also reinforced its commitment to passing the EFCA in the “White House Taskforce on the Middle Class” annual report. It’s vital that manufacturers continue to urge members of Congress to oppose the EFCA in any form.
• If seated to the NLRB, Mr. Becker could implement aspects of the EFCA through NLRB actions. The Senate recognized the concerns of NAM members in the recent vote to block the nomination from moving forward. However, President Obama has indicated that he may seek to seat Mr. Becker through a recess appointment and Secretary Solis alluded to this possibility by telling reporters that union officials will be “very pleased” with how the issue is resolved.
  
  
• Recent news reports make it clear that political candidates’ positions on the jobs-killing card check legislation will be a major focus in the upcoming primaries and fall midterm elections. As the AFL-CIO plans its largest political effort ever this year, union leaders stated they would not back Democrats who have not supported labor, especially on issues like the card check bill.
  

Paycheck Fairness Act

• We are hearing reports of renewed interest in the Senate to consider the Paycheck Fairness Act. This bill quickly passed the House, along with the Ledbetter Fair Pay Act, in the beginning of this Congress. Please click here http://www.bipac.net/issue_alert.asp?g=nam&issue=Paycheck_Fairness&parent=NAM to send a message to your member of Congress to oppose the Paycheck Fairness Act.
  
  
• If signed into law, the legislation would expose employers to unlimited punitive and compensatory damages under the Equal Pay Act, even when there is no evidence of illegal discrimination. For more information on the legislation, please click here http://www.nam.org/~/media/5A4A6138A5D04574A6075BEDF1D62D4C/PaycheckFairness.pdf.
  
  

Ergonomics

• OSHA has proposed new rulemaking to capture data on musculoskeletal disorders (MSDs). We are concerned that this seemingly innocuous proposal is the first step toward a broader ergonomics effort. The NAM is leading the employer community’s effort to respond to the proposal through formal regulatory comments.
  
  
• The proposed rule would place a heavy financial and administrative burden on employers to determine which disorders are and are not “workplace related.” The full details of OSHA's proposal are available here http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=FEDERAL_REGISTER&p_id=21314.
  
  

NAM Action and Resources

• Significant progress in blocking the nomination of Craig Becker in the Senate has been made, and we encourage you to click here http://www.bipac.net/issue_alert.asp?g=nam&issue=Becker&parent=NAM to thank the Senators who opposed this nomination.