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Western Carolinian Volume 68 Number 08

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Item 1 - Western Carolinian Volume 68 Number 08

Western Carolinian Volume 68 Number 08

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  - Western Carolina University
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  - HL_WesternCarolinian_2004-02_Vol68_No08_11
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PEON ELEN ETE LOO LESSEE EEE LETTE EIT y Peter G. Gosselin | Los Angeles Times American employers expanded their payrolls by 112,000 jobs in January, the largest monthly addition in three years but still below what many economists predicted. The weaker-than-expected showing put off for at least another month a clear sign that employment growth has finally begun to follow economic growth. The economy has expanded ata powerful 6 percent clip since the middle of last year while jobs have barely managed a | percent gain. Economists had expected a net increase of at least 150,000 jobs last month, better than the revised gain of 16,000 jobs in December but still well below the 250,000 average monthly growth in the boom years of 1993-99. Fridays report from the Labor Department ratchets up election-year pressure on President Bush, who has staked his reputation as an economic _ manager on a series of tax cuts that he says are reviving both jobs and growth. And they embolden Democratic challengers to renew charges that Bush has the worst jobs record of any president since Herbert Hoover. But investors saw something positive in the report: it reduces pressure on the Federal Reserve to hike interest rates sooner rather than later. That helped push stock prices higher, while interest rates set by the bond market declined. Speaking in Virginia, President Bush cited the January jobs numbers as evidence things are getting better. : There. is more to do, but this economy is | growing in strength and Im obviously pleased with _ that, Bush told his audience. : Democratic presidential hopeful Sen. John Edwards of North Carolina, campaigning in Virginia, retorted that Bushs economic policy is great for corporate bottom lines, but it is bad for our workers. The January jobs report showed that the nations unemployment rate fell to a two-year-plus _ low 5.6 percent last month, from 5.7 percent in December. But analysts said that was largely the result of statistical adjustments that tend to be applied more heavily than usual to smooth out the effects of Christmas holiday hiring. se SERNA little to stanch the loss of U.S. manufacturing jobs, which fell by another 11,000 in January, the 42nd straight month of decline. Economists cautioned that the latest job igures are harder than most to interpret because of he heavy. dose of seasonal adjustment and because he Labor Department moved up to January a series f annual corrections it usually makes in June. But or every encouraging sign in the latest numbers, here appeared to be an offsetting disappointment. Perhaps the most important involved the arge and growing disparity between the two major urveys the government relies on to gauge the labor market. The governments monthly survey of about - 60,000 households suggests the economy has added - more than 2.3 million jobs since the official The report suggested that the recent burst of economic growth and rising factory orders have done U.S. Manufacturing Jobs: 42nd Straight Month of Decline Expanding Employment Less Than Expected November 2001 end of the recession. By contrast, its much larger survey of about 400,000 business establishments the one that is considered the official job tally indicates the economy has lost more than 700,000 jobs. Administration officials, such as Treasury Secretary John Snow and National Economic Council director Stephen Friedman, have argued for months that the smaller, household survey was giving the more accurate picture of the labor market. They have suggested that when the Labor Department got around to correcting its establishment survey results, they would show job gains instead of losses. But the latest job numbers include corrections of the establishment survey results through March of last year, and they show that the economy lost.163,000 more jobs than gaute thought. The numbers assure that this will go down as the most anemic job market recovery in modern history, said David A. Rosenberg, chief North American economist for Merrill Lynch & Co. in New York. Many details of the January numbers were equally disquieting. Fully 76,000 of the 112,000 jobs added during the month were in retailing. But a wide atray of economists said that sudden jump was almost certainly the result of a flaw in the Labor Departments seasonal adjustment methods. They said a better way to gauge retail employment is to look at a three-month average of hiring; that suggests retail job growth of only 3,000. Temporary-help employment, which many treat as a leading indicator of broader job growth and which had been on the rise for eight months, fell by 21,400 in January. Payrolls in the computer and electronics industry, which analysts say should be among the first to profit from a revival of business investment spending, were essentially flat. (Optional add end) On the plus side, construction employment expanded by 24,000 jobs last month, while health and education payrolls rose a similar 22,000. And both the average work week and the manufacturing work week increased, which economists took as evidence that employers intend to keep their current employees busy. Average hourly earnings of production and nonsupervisory workers, who make up about two- thirds of the nations workforce, rose two cents to $15.49. Average weekly earnings edged up 0.7 percent to $522.01. Over the last year, average weekly earnings have risen 1.7 percent, or slightly less than inflation. There were continuing signs of economic stress among the unemployed, as the fraction of the jobless out for six months or more rose a half point to 22.7 percent and the average duration of a jobless spell reached 19.8 weeks. Among blacks, the unemployment rate rose to 10.5 percent from 10.3 percent in December. The jobless rate for Latinos increased to 7.3 percent from 6.6 percent. The rate for whites fell to 4.9 percent from 5. percent. 2004 WASHINGTON POST (Times staff writers Maura Reynolds in Washington and Scott Martelle in Virginia contributed to this report). Fires Employees in Kickback Scandal By John Hendren | Los Angeles Times sthaoneeaeandnsesaamccatcanccesteanccesenencnsatiee Halliburton, Vice President Dick Cheneys former company, said Friday that it fired two employees who allegedly accepted kickbacks in return for helping a subcontractor overbill the Pentagons Iraq reconstruction program by $6.3 million. Halliburton officials said they informed Pentagon Inspector General Joseph Schmitz last week that an internal audit found that two employees of the companys Kellogg, Brown & Root subsidiary might have accepted improper payments from a Kuwaiti subcontractor as part of an effort to bilk the Pentagon. E The incident could give ammunition to critics of the war in Traq and President Bushs political opponents, just as the 2004 presidential election season heats up. Halliburton, which Cheney served as chief executive immediately before becoming vice president, is already under investigation by the Pentagon for possible overbilling for gasoline in Iraq. Democrats responded to the new allegations by calling for a congressional investigation of the company, which has received numerous contracts worth billions for work in Iraq. President and Chief Executive Randy Harl said in a statement Friday that the $6.3 million in possible overcharges would be paid back even prior to a Pentagon investigation, adding: We will bear the cost of the potential overcharge not the government. On Capitol Hill, Senate Minority Leader Tom Daschle of South Dakota and other Democrats pounced on the allegations as evidence that Congress needs to investigate all Halliburton contracts in the Persian Gulf. Cheney has repeatedly denied that he has influenced decisions to award contracts to Halliburton, and the White House on Friday appeared to dismiss calls for a congressional probe. White House spokesman Scott McClellan called Democrats complaints election-year politicking. He said Bush expected the Pentagon to resolve any outstanding questions. The President has made it very clear that he expects the Department of Defense to get to the bottom of that matter, and... if the federal government was overcharged, that Halliburton should repay that money, McClellan said. Some military analysts said that calls for halting Halliburtons contracts are unrealistic. This is unlikely to have any effect on the company or on its business relations to the government or its common practices in Iraq, said Dan Goure, a former Pentagon official and defense analyst at the Lexington Institute, an Arlington, Va., public policy group. The only thing that prevents government vehicles from running out of gas and the whole country shutting down is Halliburton. .. . You could no more shut the contracts down than disband NASA while the shuttle is in space, Goure said. Some military analysts have said there are few alternatives to Halliburton, because few companies have the wherewithal to mobilize the resources necessary to support the worlds largest military halfway across the globe. Houston-based Halliburton, founded in 1919, provides construction, engineering and logistics services to the oil and gas industry. It has contracted with the Pentagon for more than 50 years, building war ships for the Navy in World War II and performing services in Afghanistan. But the vice presidents links to the company have made allegations of impropriety an increasing source of criticism both here and abroad. This is not just a domestic criticism. Its a strategic problem for the United States, said Michael O Hanlon, a former Congressional Budget Office analyst now at the Brookings Institution, a Washington think-tank. It gives the appearance to other nations of enriching Dick Cheneys buddies as a way of carrying out foreign policy. We have to use this as an opportunity to put greater regulation and oversight on private firms that support military operations, O Hanlon said. Weve been using these firms a lot more in recent years, and its poorly overseen. 2004 WASHINGTON POST (Times staff writer Richard Simon in Washington contributed to this report.) .

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Description

The Western Carolinian is Western Carolina University's student-run newspaper. The paper was published as the Cullowhee Yodel from 1924 to 1931 before changing its name to The Western Carolinian in 1933.
Details
- Creator
  - Western Carolina University
- Format
  - Publications (documents)
- Type
  - Text
- Date
  - Date original: 2004-02
- Extent
  - Dimension: 14" x 11.5"
  - Pages: 28
- Subject - Topic
- Location
  - Jackson County (N.C.)
  - Cullowhee (N.C.)
- Source institution
  - Western Carolina University
- Source Collection
  - WCU Students Newspapers Collection
- Identifier
  - HL_WesternCarolinian_2004-02_Vol68_No08
- Repository
  - Western Carolina University Hunter Library

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