Jobless rate at its lowest in 5 years

Waterbury Republican-American ^ | November 4, 2006 | Jeannine Aversa (A.P.)

[Graybeard58]

WASHINGTON -- Opportunities grew last month for people seeking jobs as health care providers, accountants and bookkeepers, computer designers, bartenders, waiters and temporary workers.

With the number of people finding work outpacing those losing jobs, the nation's unemployment rate sank to a five-year low of 4.4 percent -- flashing a picture of a jobs market on firm footing as voters go to the polls next Tuesday. Connecticut's unemployment rate stood at 4.7 percent in September, the latest figure available.

Figures released Friday by the Labor Department suggested employers are coping fairly well with a national economy that has lost momentum due to the housing slump.

Still, pockets of pain were evident. The struggling auto industry slashed jobs. So did companies involved in home building, as well as furniture makers and real-estate firms -- casualties of the sour housing market. Retailers continued to pink-slip employees.

All told, the economy added 92,000 new jobs in October. Although that fell short of economists' expectations for an increase of around 125,000, gains in both August and September turned out to have been much stronger. During those two months, the economy generated 139,000 more jobs than previously estimated, and that eased the sting from October.

So did the drop in the unemployment rate, from 4.6 percent in September. It marked the third month in a row that the rate had declined.

"There was a hiring party going on, " said economist Richard Yamarone of Argus Research. "Unfortunately manufacturing and construction workers didn't get an invitation."

How voters view job availability, wage growth and other economic conditions is likely to play a role in the balloting nationwide Nov. 7.

Workers, many of whom have seen their wages whittled by inflation, saw solid gains last month. Their hourly earnings climbed to $16.91, up 0.4 percent from September. Over the past 12 months, wages have grown by 3.9 percent.

"Consumers' paychecks are now staying ahead of inflation, which has eased because of the drop in energy prices," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group. "People are finding jobs and making more money even after inflation."

Growth in wages should also support consumer spending, an important fuel to keep the economy moving. But a rapid and sustained advance could make the Federal Reserve fret about inflation flaring up. That's not good for the economy or workers' pocketbooks, ultimately, because inflation can eat into everybody's buying power.

[BunnySlippers]

But Pelosi says it's the worst economy since the Great Depression!

[NaughtiusMaximus]

Can someone recommend a good one handed economist?

[BW2221]

Then, there's Michigan ....

[hnj_00]

sounds like a hoover depression to me!!!!!

if the economy is the worst since the great depression....why is half of mexico trying to invade????

[thackney]

BTTT