04 May 2007 Healthy Slowing Continues
Posted at 14:44h in The Friday BriefOne of the last holdouts in the slowing economy story – employment - has now fallen in line.USjobs grew at its slowest pace in more than two years last month, according to the government. And almost all of the gains came from health care and government while the job losses spread beyond homebuilders and manufacturers. Unemployment rose slightly as well from 4.4% to 4.5%. The good news is that inflation pressure from wages appears to be on the decline. Workers' average hourly earnings rose just 0.2% after a 0.3% increase in March. Earnings were up 3.7% from April of last year. Easing inflation will give the Fed more room to loosen the money supply if needed to boost economic growth.