BLIZZARD OF '96 PUTS JOBS ON ICE\Unemployment rate rises to 5.8%.Byline: John D. McClain Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. The nation's unemployment rate rose to 5.8 percent in January, the highest rate since last spring, as severe winter weather dumped a new burden on an already hobbled economy. The Labor Department The Department of Labor (DOL) administers federal labor laws for the Executive Branch of the federal government. Its mission is "to foster, promote, and develop the welfare of the wage earners of the United States, to improve their working said Friday that payrolls fell by 201,000, the most in nearly five years, largely because the mid-January blizzard blizzard, winter storm characterized by high winds, low temperatures, and driving snow; according to the official definition given in 1958 by the U.S. Weather Bureau, the winds must exceed 35 mi (56 km) per hr and the temperature 20°F; (−7°C;) or lower. closed businesses throughout the Eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. during the department's survey week. "The blizzard of '96 caused one of the biggest temporary layoffs in recent American history," explained Labor Secretary Robert B. Reich. "But there's no reason to suppose the economy is not moving forward." Joseph E. Stiglitz Joseph Eugene "Joe" Stiglitz (born February 9, 1943) is an American economist and a member of the Columbia University faculty. He is a recipient of the John Bates Clark Medal (1979) and the Nobel Memorial Prize in Economics (2001). , chairman of the president's Council of Economic Advisers, also dismissed much of the weakness as weather-related. He said the administration, which will release its new economic forecast Monday with its 1997 budget proposal, saw no threat of a recession. "The basic economy is strong," he said. "Is there any indication of a recession? The answer is clearly no." Many private analysts, however, said the report was just the latest in a series of data suggesting a weak economy. "While the weather is part of the problem, excess inventories, consumers who have spent all their money and a stalled manufacturing sector suggest the absence of growth in the first quarter," contended Jerry Jasinowski, an economist and president of the National Association of Manufacturers. "We are flirting with recession." Economist Marilyn Schaja of Donaldson, Lufkin & Jenrette Securities Corp. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of agreed that "the real number is not minus 201,000." But, she added, "When you take away the impact of weather, job creation probably was flat." Although rejecting any suggestion of a recession, Reich acknowledged the Federal Reserve interest rate cuts earlier this week, which were designed to invigorate in·vig·or·ate tr.v. in·vig·or·at·ed, in·vig·or·at·ing, in·vig·or·ates To impart vigor, strength, or vitality to; animate: "A few whiffs of the raw, strong scent of phlox invigorated her" a lethargic economy. "Undoubtedly, lower rates puts more money into people's pockets, and that in turn encourages people to go out and buy at the malls and encourages them to buy cars and other consumer durables Consumer durables Consumer products that are expected to last three years or more, such as an automobile or a home appliance. consumer durables See durable goods. ," he said. The jobless rate matched a 5.8 percent reading last April, the highest during 1995. The rate had dipped to 5.4 percent last February. The increase was the first since it rose to 5.6 percent in November, from 5.5 percent a month earlier. It was unchanged in December. CAPTION(S): CHART Chart United States Employment |
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