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(CNNMoney.com) -- Consumer borrowing increased in January for the first time in a year, the Federal Reserve reported Friday. The news blew past economist expectations which predicted a decline for the 12th straight month.Total consumer borrowing rose a seasonally adjusted $5 billion, an annual rate of 2.5%, to $2.456 trillion in January, according to the Federal Reserve. Economists surveyed by Briefing.com predicted a decline of $4.5 billion in January. Facebook
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Comment on this storyThe Fed also revised the figure for December 2009 to a $4.6 billion decrease in total consumer borrowing. The Fed had previously reported a $1.8 billion decrease in December.But some analysts say Wall Street should take the news with a grain of salt. Consensus estimates are consistently way off on consumer credit numbers, said Scott Valentin, an analyst with FBR Capital Markets.Loosening purse strings: As the recession worsened in 2009 and people began pulling back on heavy borrowing and spending, consumer credit began to fall. For the full year, consumer debt dropped by 4% to $2.45 trillion from $2.56 trillion in 2008. Friday's report may be an indication that consumers are beginning to feel more comfortable with their financial outlook and are starting to spend more. Or it could mean that they simply can't afford to pay down their debt anymore.It's probably the former, Valentin said."We haven't seen any wage growth and asset appreciation isn't there. If you're not getting wage growth, the only way to buy more is through accessing credit," he said. "It's a signal that maybe things are stabilizing for the consumer."Cutting up the cards: But the trend away from credit card debt seems to be continuing. Revolving credit, which includes credit cards, fell in January by a 2.3% annual rate. Nonrevolving credit like auto, personal and student loans drove the overall increase in January, rising a 5% annual rate. The Fed's consumer credit report does not include mortgages and other real estate loans.Earlier Friday, a Labor Department report showed businesses cut 36,000 jobs in February, fewer than the 68,000 jobs economists were expecting. A separate report showed the national unemployment rate remained at 9.7% in February, the same as the month before.


    
        
         
      
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Your paycheck is getting bigger. No joke  How to retire early, save for a home  America's hidden debt bombs





First Published: March 5, 2010: 3:23 PM ET

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(CNNMoney.com) -- Friday's jobs report showed some glimmers of a recovery but if you're among the 8.8 million Americans still unemployed after nearly four months, you may have been left scratching your head.You're not alone.Facebook
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Comment on this story   I stopped looking for work                     The number of discouraged job seekers is at an all time high. These readers tell us what it's like to give up on the job search.      View photos   
"Whether you say the jobs market is improving or getting worse, there are people who will say you're crazy," said Lakshman Achuthan, managing director of Economic Cycle Research Institute. "That's because there are two Americas, and they're both right." Of the 8.8 million who have been unemployed for more than 3-1/2 months, there are 3.5 million more now than there were at this point last year. And for this group, the job market is looking grimmer by the day. According to the Labor Department, a stunning 58.9% of jobless Americans have now been unemployed for more than 15 weeks -- an all-time high.On the other hand, the job market is rapidly improving for those who have been unemployed for less than 3-1/2 months. There are 1.2 million fewer Americans who have been unemployed for under 15 weeks, compared with this time last year. The 41.1% who have been out of work for fifteen weeks or less marks a record low. One caveat. Some of those who have dropped out of the under-15-week group may still be out of work, putting them into the longer-term unemployed group. A tale of two job marketsA closer look at the numbers helps paint a picture of the increasingly fractured job market. Economists say most of the workers who have been out of a job for more than 15 weeks include those in slow-to-recover industries like construction, finance and manufacturing. Unfortunately for them, those businesses will likely be the last to recover."There is simply no business demand for construction workers or the guys writing credit-default swaps and derivatives," said Achuthan. "The economy, going forward, doesn't want them."0:00
      /1:34What's in the overdue jobs bill?When the housing and credit bubbles burst in late 2007 and 2008, the economy tanked. Leading up to that, when the bubble was expanding, both industries had a glut of workers. That left those industries over-exposed to financial losses when things turned sour. Both markets are just starting to recover, but businesses are still wary about hiring back construction workers and complex finance experts. "Those areas that were over capacity will have no bounce back anytime soon," said Doug Roberts, chief investment strategist for ChannelCapitalResearch.comOn the flipside, the short-term unemployed are largely from the services industries, economists say. Those with training in private and professional services have been able to find jobs faster in a number of growing industries like health care, information technology and education. For instance, the health-care industry has added 210,000 workers over the past year, according to the Labor Department. With an increasingly aging population, demand for health-care services is growing rapidly. Education has added 36,000 jobs during the past 12 months, and other industries like tech and accounting have also recently started adding positions.Temp jobs a temporary solutionFor the growing number of people who have been unemployed for 15 weeks or more, there's no easy solution to get their jobs back."The problem is that most the of the long-term unemployed are older people that have been doing the same thing for years. You can't just take a construction worker and give him a job in a hospital," said Achuthan. "No jobs bill is going to be able to deal with that."Historically, after an industry's bubble burst, it has taken a long and steady recovery before businesses were willing to take a chance and hire again. Meanwhile, its workers' skills atrophy, and they cost the country about $100 billion a year in lost productivity, Achuthan said.Tax goodies for job seekersFor those who can't find work in their fields but are able to get training or adapt their skills to new endeavors, there is a silver lining: temporary, introductory-level jobs are one of the fastest-growing sectors. Nearly 100,000 temporary positions have been created in the first two months of 2010 alone."The huge trend of temporary hiring will continue for a while, which is good for people looking for just about anything," said Roberts. "Now people are just happy to have any job."


    
        
         
      
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Jobs will grow in 2010, but then what?   Jobs report shows unemployment unchanged





First Published: March 6, 2010: 8:00 AM ET

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(CNNMoney.com) -- Many of the nation's top retail chains reported much stronger-than-expected February sales Thursday, furthering hopes that U.S. consumers are starting to loosen their purse strings.  Total sales jumped 4% in February, according to sales tracker Thomson Reuters, which looks at monthly same-store sales for 30 chains such as Costco, Target (TGT, Fortune 500), Gap and J.C. Penney (JCP, Fortune 500). The firm had forecast a 2.9% gain for the month.Facebook
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Comment on this storySame-store sales, or sales at stores open at least a year, are a key measure of a retailer's performance.February marked the sixth month in a row that overall same-store sales increased and was the strongest gain since November 2007, when those sales rose 6%. The secret lives of American debtorsHowever, analysts cautioned that the increase was partly a reflection of how bad sales were last year. In February 2009, same-store sales fell 4.7%."Clearly comparisons are very easy right now," said Scott Hoyt, a retail economist at Moody's Economy.com. "The level of sales is still very weak, but the trajectory is going in the right direction."He said the improvement in sales was impressive because it came despite a rash of severe snow storms that crippled much of the Northeast during February, causing some retailers to close for a few days. "The fact that we had better than expected results in the face of winter storms is encouraging and suggests that consumers are slowly and cautiously returning to spending," Hoyt said. By the numbersSales were strong across the board, with 76% of retailers beating analysts' estimates. Sales at the Gap rose 3% in February, versus an estimated 1.8% increase. The gain was driven by a 6% rise in sales at Banana Republic, which is the retailer's higher-end brand. Abercrombie & Fitch (ANF), which has resisted discounting, reported a sales increase of 5% in the month. That compares with a forecasted decline of 6.9%. The continued strength in sales at teen-focused retailers suggests that consumers are becoming more willing to spend on non-essential items, said Jharonne Martis, a retail industry analyst at Thomson Reuters.Thomson Reuters' teen index, which tracks seven retailers in the sector, rose for the second month in a row, with only one company missing estimates. "The teen index is a good proxy of discretionary spending," said Martis. "Consumers are reaching for their pocket books now."Looking ahead, analysts expect March sales to be even stronger, due in part to sales associated with the Easter holiday. -- An earlier version of this story misstated the sales increase at Abercrombie & Fitch. CNNMoney.com regrets the error.   


    
        
         
      
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World's most admired companies  Saying sorry: Why so few companies do it





First Published: March 4, 2010: 11:42 AM ET

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(CNNMoney.com) -- Maine's lobstermen are working harder for less, as demand drops for their expanding harvest.Lobstermen pulled in a robust 76.3 million pounds in 2009, according to the Maine Department of Marine Resources. That's the largest harvest in years, according to state records and estimates, but only in terms of volume.Facebook
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Comment on this storyThe 2009 take was worth $223.7 million, which is about $22 million less than the prior year, according to the department. State statistics show that the harvest has dropped in value, year-to-year, since 2005, when it totaled nearly $318 million. As with most things, the recession is to blame. Cash-strapped consumers are avoiding delicacies such as lobsters, driving down the overall price, according to George Lapointe, commissioner of the Maine Department of Marine Resources."I think it's largely a function of supply and demand, and the world economic condition," he said. "Lobster is a luxury product."0:00
      /1:58Call of the sea becomes faintLapointe said the price of lobster managed to "claw its way" back to a range of $2.75 to $3 per pound in 2009, after slumping to $2 to $2.50 in the fall of 2008. That pales in comparison to five years ago, he said, when lobstermen were getting $4 to $4.50 per pound.Lobstering is an essential part of Maine's economy, he said, providing about $500 million in annual revenue to coastal communities. He said the tourism industry has managed to hold up, despite the recession, but visitors to Maine only account for one-sixth of lobster purchases. Lapointe said cruise ships, which are traditionally among the largest consumers of lobsters, are cutting back on their purchases and this has been painful for lobstermen."They are certainly in a financial squeeze right now," he said. "When they fish harder, they use more bait and more fuel, and those are huge costs for them."Lapointe said fuel cost is consuming as much as 40% of a lobsterman's take, up from 10% to 15% in recent years.More lobsters, less moneyDavid Cousins, president of the Maine Lobstermen's Association and a lobsterman for 42 years, said the 2009 harvest was the biggest since the early 1990s, when the annual take peaked at an estimated 100 million pounds. But that is little comfort, considering the dropping prices and increasing costs."Our business is based on a $4 dollar-plus lobster [per pound]," said Cousins. "When you're getting $2.90 a pound, you're going the wrong way and it just doesn't work anymore.The cost of Atlantic herring, an abundant fish used as bait in lobster traps, jumped to a range of 25 to 30 cents per pound from 3 cents in the mid-1990s, said Cousins. The cost of bait now consumes 20% of gross revenue for lobstermen, compared to 2% in mid-1990s, he said."Our [net] income has dropped by 35% to 40%, and sometimes 50%, because of increased cost of fuel and increased cost of bait," Cousins said.This spells trouble for the industry and some lobstermen have lost their boats to bank foreclosures, he said."There are a lot of people who are in serious trouble up here, because they have a lot of money out on their business - they owe for boats and traps and houses and trucks and all that," Cousins said.But getting out of this hardscrabble business isn't much of an option for most lobstermen, despite its difficulties, he added."People are hanging on as long as they can, because there aren't any jobs any more," Cousins said.


    
        
         
      
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Looking for a bargain dinner? Try lobster  A new hook for Maine lobsters





First Published: March 4, 2010: 12:47 PM ET

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(CNNMoney.com) -- Next up on the jobs-creation agenda: Lure more foreign travelers to the United States.President Obama on Thursday signed the Travel Promotion Act, which creates a nonprofit corporation to market overseas visits to United States. The venture will be funded by a $10 fee on foreign travelers and up to $100 million from the tourism industry.Facebook
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Comment on this storyAmerica is one of the few developed countries that doesn't market itself abroad, according to industry experts, though states, resorts, hotel chains and attractions certainly promote themselves. Marketing campaigns funded by the act could attract an additional 1.6 million international visitors a year, generating $4 billion in spending and creating 40,000 jobs, according to consulting firm Oxford Economics, which has conducted research on behalf of the U.S. Travel Association, a trade group."We're the only modern nation that doesn't advertise ourselves," Senate Majority Leader Harry Reid, D-Nev., said last week as he laid out his plan to spur employment, which includes the Travel Promotion Act. "Every state in the union, their No. 1 or No. 2 ... economic driver is tourism."The act will create a public-private venture, similar to a state or city visitors' bureau, that will be run by an 11-member board of industry representatives appointed by the Commerce Secretary. The $10 fee will be charged only to those visiting from the 35 countries that don't need visas to enter the United States. These include most European countries, as well as Japan, Australia and South Korea. The fee, which will be charged only once every two years, will be collected when these travelers apply for pre-authorization to come to the United States.In addition to marketing America as a destination, the venture will provide information on entry requirements and counter misperceptions of the nation's travel policies, according to the legislation. Its operations will be reviewed by the Commerce Secretary, the U.S. Comptroller General and Congress.Bipartisan supportCo-sponsored by Sens. John Ensign, R-Nev., and Byron Dorgan, D-N.D., the bill previously passed the House of Representatives and enjoyed bipartisan support in the Senate, where it is also expected to be approved. President Obama touted it in a visit to tourism-dependent Nevada last month.Eager to give their tourism industries a boost, state and local officials have praised the effort. It had 53 co-sponsors in the Senate, which approved it last week. But not everyone has gotten on board. Sen. Jim DeMint, R-S.C., said creating what he called a "government tourism advertising agency" is unnecessary."The American travel industry already spends billions every year on advertising with tens of millions focused on international marketing," he wrote in an op-ed piece. "The purpose of the Travel Promotion Act is to subsidize that advertising."The U.S. Travel Association said that foreign visitors view America's visa and entry process as difficult and unwelcoming. In its view, an advertising campaign to counter that perception will only succeed if it comes with government backing.Though surveys show that many foreigners view the United States as a desirable place to vacation, fewer are coming here, said Adam Sacks, managing director of Tourism Economics, a subsidiary of Oxford Economics."When it comes down to decisions, there are a lot of other destinations that are top of mind," Sacks said.Overseas travel to the U.S. is down 9% since 2000, said Roger Dow, the travel association's chief executive.That has hurt the labor-intensive tourism sector, which has lost 441,000 jobs in the last decade, he said. One in eight Americans benefits from the travel industry, the association estimates, either by working directly for a hotel, rental car agency or the like or by being on the payroll of a supplier, such as a taxi service."If more people come to the U.S., more Americans work," Dow said.The bill comes on the heels of a $15 billion jobs measure passed last week by the Senate. On Monday, Reid and Sen. Max Baucus, D-Mont., unveiled a $150 billion bill with some additional job provisions.


    
        
         
      
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Senate approves $15 billion jobs bill  States to Senate: Send more federal aid  The job application black hole

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(CNNMoney.com) -- Consumer prices rose from a year ago amid climbing gasoline prices but the pace of price increases slowed, the government said Friday.The Consumer Price Index, the government's key inflation reading, rose 2.6% during the past 12 months, according to a report from the Labor Department. In December, prices rose 2.7% from the previous year. Facebook
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Comment on this storyThe core CPI, which is more closely watched by economists because it strips out volatile food and energy prices, rose 1.6% over the past year. That's the lowest level since September, when prices rose at a rate of 1.5%.  January: For the month of January, overall prices rose 0.2%. Economists surveyed by Briefing.com had forecast a 0.3% rise.In a surprise drop, the core CPI fell 0.1% in the month, the largest decline since December 1982. Analysts had expected a 0.1% increase. The drop came amid falling prices of housing and shelter, which fell 0.5%. The index for lodging away from home fell the most -- 2.1%, while rent prices were unchanged.   The drop in overall core CPI for January was a bit of a fluke because of the volatile lodging prices, said Mark Vitner, an economist at Wells Fargo Securities."We're probably seeing a lag response of businesses cutting back on meetings and traveling, and that's weighing on the core CPI," he said. "So the number is a little exaggerated -- we're not going to get declines like this month over month."Prices of new vehicles and airline fares dropped as well, while medical care prices rose the most since January 2008 and the index for used cars and trucks climbed higher for the sixth-consecutive month.Overall consumer prices were boosted by rising energy prices. Gasoline prices rose 4.4%, pushing the energy index up 2.8% in January, the ninth-consecutive month of increase. Fuel oil and natural gas prices rose as well, while electricity prices fell. Higher prices of dairy products and fruits and vegetables boosted the food index up 0.2% in January.Despite the overall rise in consumer prices, Vitner said inflation is unlikely to become a problem this year as housing costs fall, vehicle prices level off and airline fares drop. "But that doesn't mean [inflation] won't become a problem in the future," said Vitner. "While I expect continued good news in 2010, some of the factors restraining inflation this year will likely swing the other way in 2011."   


    
        
         
      
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Recovery: A long bearish road ahead  Rebound on the factory floor  Jobless claims rise unexpectedly





First Published: February 19, 2010: 8:40 AM ET

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(CNNMoney.com) -- If President Obama's 2011 budget were put into effect as proposed, the U.S. federal government would add an estimated $9.8 trillion to the country's accrued debt over the next decade, according to a preliminary analysis from the Congressional Budget Office.Of that amount, an estimated $5.6 trillion will be in interest alone.Facebook
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Comment on this storyBy 2020, the agency estimates debt held by the public would reach $20.3 trillion, or 90% of GDP. That's up from 53% of GDP in 2009.Research done by economists Kenneth Rogoff and Carmen Reinhart has shown that such high levels of debt can cause a drag on economic growth.The CBO cited two big contributors to the jump in debt. One is the president's proposal to extend the 2001 and 2003 tax cuts for the majority of Americans. The other is the proposal to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax (AMT). Together those proposals would cost $3 trillion between 2011 and 2020."It points out the unwillingness of the administration to raise the revenues to pay for the size of government being proposed," said Robert Bixby, executive director of the Concord Coalition, a deficit watchdog group.If Congress doesn't act, all of the Bush tax cuts are slated to expire at the end of this year and there will be no protection from the AMT.But current law is not politically realistic, many say. That's why the administration prefers to compare the cost of its proposals to what  lawmakers are likely to do -- namely, extend tax cuts and fix the AMT. Hence, the White House Budget Office estimates that under the president's proposals, $8.5 trillion would be added to the country's accrued debt over the next decade, or $1.3 trillion less than the CBO estimate.Either scenario is unsustainable, Bixby said.The administration has also called the budget trajectory unsustainable and the president has created a fiscal advisory commission to recommend ways lawmakers can get annual deficits down to 3% of GDP by 2015. That's well below where it would be under the president's budget, according to estimates from both the CBO and the White House. And while his proposals would chip away at deficits in the next few years, they start to climb again thereafter. By 2020, the annual deficit as a percentage of GDP will be 5.6%, according to the CBO. The White House estimates it will be 4.2%.0:00
      /5:34Debt chairmen: 'Everything's on the table'But there is no guarantee the fiscal commission's recommendations will be adopted by lawmakers.The CBO notes that its estimates incorporate the Administration's revenue and spending assumptions for policies such as health reform and climate change, because the agency didn't have sufficient details from the White House about those policies to do its own analysis.A full analysis of the president's budget will be published later in the month, the CBO said.


    
        
         
      
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Obama maps route to lower deficits  Deficit hawks: What Obama got right - and wrong  How Obama wants to pay for health reform





First Published: March 5, 2010: 5:30 PM ET

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(CNNMoney.com) -- Consumer prices rose from a year ago amid climbing gasoline prices but the pace of price increases slowed, the government said Friday.The Consumer Price Index, the government's key inflation reading, rose 2.6% during the past 12 months, according to a report from the Labor Department. In December, prices rose 2.7% from the previous year. Facebook
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Comment on this storyThe core CPI, which is more closely watched by economists because it strips out volatile food and energy prices, rose 1.6% over the past year. That's the lowest level since September, when prices rose at a rate of 1.5%.  January: For the month of January, overall prices rose 0.2%. Economists surveyed by Briefing.com had forecast a 0.3% rise.In a surprise drop, the core CPI fell 0.1% in the month, the largest decline since December 1982. Analysts had expected a 0.1% increase. The drop came amid falling prices of housing and shelter, which fell 0.5%. The index for lodging away from home fell the most -- 2.1%, while rent prices were unchanged.   The drop in overall core CPI for January was a bit of a fluke because of the volatile lodging prices, said Mark Vitner, an economist at Wells Fargo Securities."We're probably seeing a lag response of businesses cutting back on meetings and traveling, and that's weighing on the core CPI," he said. "So the number is a little exaggerated -- we're not going to get declines like this month over month."Prices of new vehicles and airline fares dropped as well, while medical care prices rose the most since January 2008 and the index for used cars and trucks climbed higher for the sixth-consecutive month.Overall consumer prices were boosted by rising energy prices. Gasoline prices rose 4.4%, pushing the energy index up 2.8% in January, the ninth-consecutive month of increase. Fuel oil and natural gas prices rose as well, while electricity prices fell. Higher prices of dairy products and fruits and vegetables boosted the food index up 0.2% in January.Despite the overall rise in consumer prices, Vitner said inflation is unlikely to become a problem this year as housing costs fall, vehicle prices level off and airline fares drop. "But that doesn't mean [inflation] won't become a problem in the future," said Vitner. "While I expect continued good news in 2010, some of the factors restraining inflation this year will likely swing the other way in 2011."   


    
        
         
      
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Recovery: A long bearish road ahead  Rebound on the factory floor  Jobless claims rise unexpectedly





First Published: February 19, 2010: 8:40 AM ET

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(CNNMoney.com) -- Consumer borrowing increased in January for the first time in a year, the Federal Reserve reported Friday. The news blew past economist expectations which predicted a decline for the 12th straight month.Total consumer borrowing rose a seasonally adjusted $5 billion, an annual rate of 2.5%, to $2.456 trillion in January, according to the Federal Reserve. Economists surveyed by Briefing.com predicted a decline of $4.5 billion in January. Facebook
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Comment on this storyThe Fed also revised the figure for December 2009 to a $4.6 billion decrease in total consumer borrowing. The Fed had previously reported a $1.8 billion decrease in December.But some analysts say Wall Street should take the news with a grain of salt. Consensus estimates are consistently way off on consumer credit numbers, said Scott Valentin, an analyst with FBR Capital Markets.Loosening purse strings: As the recession worsened in 2009 and people began pulling back on heavy borrowing and spending, consumer credit began to fall. For the full year, consumer debt dropped by 4% to $2.45 trillion from $2.56 trillion in 2008. Friday's report may be an indication that consumers are beginning to feel more comfortable with their financial outlook and are starting to spend more. Or it could mean that they simply can't afford to pay down their debt anymore.It's probably the former, Valentin said."We haven't seen any wage growth and asset appreciation isn't there. If you're not getting wage growth, the only way to buy more is through accessing credit," he said. "It's a signal that maybe things are stabilizing for the consumer."Cutting up the cards: But the trend away from credit card debt seems to be continuing. Revolving credit, which includes credit cards, fell in January by a 2.3% annual rate. Nonrevolving credit like auto, personal and student loans drove the overall increase in January, rising a 5% annual rate. The Fed's consumer credit report does not include mortgages and other real estate loans.Earlier Friday, a Labor Department report showed businesses cut 36,000 jobs in February, fewer than the 68,000 jobs economists were expecting. A separate report showed the national unemployment rate remained at 9.7% in February, the same as the month before.


    
        
         
      
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Your paycheck is getting bigger. No joke  How to retire early, save for a home  America's hidden debt bombs





First Published: March 5, 2010: 3:23 PM ET

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(CNNMoney.com) -- The end of more than two years of job losses can't come soon enough for most Americans.But with all the attention given to the number of jobs on U.S. payrolls and the unemployment rate, it's easy to miss one important sign of improvement in the job market: paychecks have started to get bigger.Facebook
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Comment on this storyDespite the millions of people who have lost jobs during the past year, there are signs that personal income is increasing. Even a small gain in income is significant. If consumers have more money in their pocket, that can help to boost consumer spending and create the demand that will prompt a resumption of hiring."At the end of the day, we need income so people can spend money," said Sung Won Sohn, economics professor at Cal State University Channel Islands. "It is a sign that things are beginning to improve."According to the government's monthly job report for February, average hourly earnings have risen by 1.9 percent over the past 12 months..That's not the only evidence of a turnaround in pay. An analysis of income and employment taxes withheld from more than 130 million U.S. workers by TrimTabs Investment Research found that total salaries and wages increased by 0.7% in February compared to a year ago. This is the first increase since 2008, and it represents $42 billion extra dollars in consumers' pockets compared to a year ago.0:00
      /3:58The challenges facing job growthTrimTabs CEO Charles Biderman said he was surprised and encouraged by the increase in income, which occurred even as TrimTabs estimated there was another loss of 30,000 jobs in February, and total losses of 3.9 million jobs in the past year.He said companies are adding hours back for workers who had been put on a part-time basis during the worst of the recession. He said there also was a much better environment than a year ago for year-end bonuses that were paid in February."As things stabilize, businesses are starting to spend a little more," Biderman said.Sohn said strong gains in productivity are also allowing employers to pay their skilled workers more. Productivity rose at nearly a 7% rate in the fourth quarter, according to the government..But Bob Brusca of FAO Economics cautions that Friday's employment report could show unduly bad numbers for both payrolls and hours due to the major snow storms that closed many businesses in the eastern United States during the week the Labor Department surveys employers. He said bigger bonuses and slightly higher salaries can't by themselves make up for the spending power lost due to the massive job cuts of the past two years."You have to put these 8 million plus people back to work," he said.


    
        
         
      
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First spark of a jobs recovery  Spending more, saving less. Uh-oh  Americans spend more in February





First Published: March 4, 2010: 4:57 PM ET

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(CNNMoney.com) -- As severe winter storms crippled East Coast cities, the U.S. economy shed thousands of jobs in February, according to a government report released Friday. But the unemployment rate remained unchanged. The Labor Department said the economy lost 36,000 jobs in the month, fewer than the 68,000 jobs economists were expecting, according to a survey conducted by Briefing.com.Facebook
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The results were still worse than the previous month, as just 26,000 jobs were lost in January, according to a revised estimate.But there was no significant change in the number of unemployed workers, and the unemployment rate held steady at 9.7%. Economists surveyed by Briefing.com were expecting an increase to 9.8%.The government said the winter storms that blanketed the East Coast with several feet of snow last month possibly skewed the results. The Labor Department's jobs survey was conducted in the middle of February, which coincided with blizzards that temporarily shuttered some businesses and kept many workers home without pay. Those employees would not have been counted on the government's payroll survey if they did not get paid during that pay period.  "The jobs numbers themselves show a pretty steady improvement across most categories," said Bob Brusca, economist at FAO Economics. "Through the blizzard of jobs data, it's a lot easier to connect the dots to a positive story than to a negative story."Brusca noted that even in sectors that are not hiring, the pace of job loss has slowed to close to the lowest level since the recession began in December 2007. Snowed in"The snow storms were particularly severe, hitting large-population areas the hardest right at the time of the survey," said George Corona, chief operating officer of temporary staffing firm Kelly Services. "You would expect that manufacturing and construction were negatively impacted because of the weather."Retail, construction and factory workers were the most likely to be impacted by inclement weather, and all three sectors took a hit in February. Retailers trimmed 400 jobs after adding 41,000 positions in January. Manufacturing businesses added just 1,000 jobs, down from 20,000 new jobs the month before.Construction continued to be one of the worst-hit sectors, cutting 64,000 jobs in February. Unemployment in the construction industry rose to a rate of 27.1%, up from 24.7% in the previous month and by far the highest rate of any sector.The snow also likely impacted the number of workers who were seeking full-time employment but were working only part-time hours. That figure rose by nearly 400,000, pushing the so-called underemployment rate up to 16.8% from 16.5% in January.That resulted in shorter hours for workers: The hourly work week fell by an average of 6 minutes to 33.8 hours in February. With a modest 3-cent gain in the average hourly salary, the average weekly paycheck rose by $1.01 to $759.15.Obama administration economist Christina Romer said the snow storms likely had a "substantial" impact on February's jobs figures. In turn, she expected last month's jobs report "to be counteracted next month, as workers who temporarily disappeared from payrolls because of the snow are once again counted."A silver liningDespite the snow, several industries showed solid gains in employment, including health care and the service industries. Private business services created 51,000 jobs in February, the most of any sector. That's encouraging, since economists say hiring in that sector is a good measuring stick for the health of the overall labor market.Also encouraging was the addition of 47,500 temporary workers, whose hiring often signals that employers are starting to gear up again. There have been nearly 100,000 temporary jobs created in 2010.0:00
      /1:34What's in the overdue jobs bill?In an attempt to correct the still slumping labor market, the House passed a $15 billion jobs bill on Thursday, and the Senate is expected to vote on it next week. The bill would exempt employers from Social Security payroll taxes on new hires who were unemployed; fund highway and transit programs through 2010; extend a tax break for business that spend money on capital investments, such as equipment purchases; and expand the use of the Build America Bonds program, which helps states and municipalities fund capital construction projects.


    
        
         
      
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Job creation bill heads back to Senate   Good job news: Wages are rising. Really.   Job cuts slow





First Published: March 5, 2010: 8:41 AM ET

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(CNNMoney.com) -- The Department of Homeland Security on Friday named the first 11 airports to receive full-body scanners paid for with stimulus funds, with most of them going to California and the Midwest.The first advanced imaging technology scanners are being installed at Boston Logan International on Friday, according to the DHS, with scanners going to 10 additional airports by the summer.Facebook
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Comment on this story    Rapiscan scanners use X-ray technology to detect objects hidden under clothing.Logan, the departure point for two of the airplanes hijacked on Sept. 11, 2001, is the only airport in the Northeast to receive a full-body scanner. None of the airports in the New York City area are included in the first wave of installations, despite the city's status as a prime target for terrorists."The Transportation Security Administration deploys imaging technology based on risk airport readiness and operation suitability," said TSA spokeswoman Sarah Horowitz, when asked why none of the scanners were installed in or near New York City. "TSA anticipates announcing the next deployment later on this month."Chicago O'Hare International will be the next location to get one, with installation scheduled for next week, according to the DHS.Scanners will be installed in three other Midwestern airports in addition to O'Hare, including Port Columbus International in Ohio, Kansas City International in Missouri, and Cincinnati/Northern Kentucky International.Another four are slated for California airports, including Los Angeles International, San Diego International, Oakland International and Mineta San José International.Two scanners are slated for Southern airports: Charlotte Douglas International in North Carolina and Fort Lauderdale-Hollywood International in Florida.0:00
      /6:26Why we need a second stimulusThe U.S. government is using $25 million in stimulus money to buy and install 150 full-body scanners in airports this year, to ramp up security and create jobs."By accelerating the deployment of this technology, we are enhancing our capability to detect and disrupt threats of terrorism across the nation," said DHS secretary Janet Napolitano in a press release on Friday. "These 11 airports will be the first of many to receive this enhanced technology as a result of the Recovery Act."The scanners are manufactured by Rapiscan, a subsidiary of Hawthorn, Calif.-based OSI (OSIS). They cost from $150,000 to $180,000 each. Peter Kant, vice president of global government affairs for Rapiscan, told CNNMoney.com in January that the government contract helped to create 25 jobs. The company did not immediately return call for comment on Friday.The soon-to-be-installed advanced imaging scanners use X-rays to provide detailed images of hidden objects in or under a person's clothing, such as weapons or explosives. According to Kant, this type of technology could have been used to prevent the alleged Christmas Eve bomber from boarding the Amsterdam-to-Detroit flight with explosives hidden in his underwear.The Transportation Security Administration has already implemented 40 scanners using a different type of technology called "millimeter wave advanced imaging" in 19 airports servicing Los Angeles, Washington, D.C., Atlanta, Miami, Detroit, Dallas and other cities. These scanners were manufactured by L-3 Communications Corp., (LLL, Fortune 500) based in Woburn, Mass.


    
        
         
      
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Battle-tested: From soldier to business leader  Stimulus to bring body scanners to airports  Airlines ripe for another merger, experts say





First Published: March 5, 2010: 12:55 PM ET

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(CNNMoney.com) -- Next up on the jobs-creation agenda: Lure more foreign travelers to the United States.President Obama on Thursday signed the Travel Promotion Act, which creates a nonprofit corporation to market overseas visits to United States. The venture will be funded by a $10 fee on foreign travelers and up to $100 million from the tourism industry.Facebook
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Comment on this storyAmerica is one of the few developed countries that doesn't market itself abroad, according to industry experts, though states, resorts, hotel chains and attractions certainly promote themselves. Marketing campaigns funded by the act could attract an additional 1.6 million international visitors a year, generating $4 billion in spending and creating 40,000 jobs, according to consulting firm Oxford Economics, which has conducted research on behalf of the U.S. Travel Association, a trade group."We're the only modern nation that doesn't advertise ourselves," Senate Majority Leader Harry Reid, D-Nev., said last week as he laid out his plan to spur employment, which includes the Travel Promotion Act. "Every state in the union, their No. 1 or No. 2 ... economic driver is tourism."The act will create a public-private venture, similar to a state or city visitors' bureau, that will be run by an 11-member board of industry representatives appointed by the Commerce Secretary. The $10 fee will be charged only to those visiting from the 35 countries that don't need visas to enter the United States. These include most European countries, as well as Japan, Australia and South Korea. The fee, which will be charged only once every two years, will be collected when these travelers apply for pre-authorization to come to the United States.In addition to marketing America as a destination, the venture will provide information on entry requirements and counter misperceptions of the nation's travel policies, according to the legislation. Its operations will be reviewed by the Commerce Secretary, the U.S. Comptroller General and Congress.Bipartisan supportCo-sponsored by Sens. John Ensign, R-Nev., and Byron Dorgan, D-N.D., the bill previously passed the House of Representatives and enjoyed bipartisan support in the Senate, where it is also expected to be approved. President Obama touted it in a visit to tourism-dependent Nevada last month.Eager to give their tourism industries a boost, state and local officials have praised the effort. It had 53 co-sponsors in the Senate, which approved it last week. But not everyone has gotten on board. Sen. Jim DeMint, R-S.C., said creating what he called a "government tourism advertising agency" is unnecessary."The American travel industry already spends billions every year on advertising with tens of millions focused on international marketing," he wrote in an op-ed piece. "The purpose of the Travel Promotion Act is to subsidize that advertising."The U.S. Travel Association said that foreign visitors view America's visa and entry process as difficult and unwelcoming. In its view, an advertising campaign to counter that perception will only succeed if it comes with government backing.Though surveys show that many foreigners view the United States as a desirable place to vacation, fewer are coming here, said Adam Sacks, managing director of Tourism Economics, a subsidiary of Oxford Economics."When it comes down to decisions, there are a lot of other destinations that are top of mind," Sacks said.Overseas travel to the U.S. is down 9% since 2000, said Roger Dow, the travel association's chief executive.That has hurt the labor-intensive tourism sector, which has lost 441,000 jobs in the last decade, he said. One in eight Americans benefits from the travel industry, the association estimates, either by working directly for a hotel, rental car agency or the like or by being on the payroll of a supplier, such as a taxi service."If more people come to the U.S., more Americans work," Dow said.The bill comes on the heels of a $15 billion jobs measure passed last week by the Senate. On Monday, Reid and Sen. Max Baucus, D-Mont., unveiled a $150 billion bill with some additional job provisions.


    
        
         
      
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Senate approves $15 billion jobs bill  States to Senate: Send more federal aid  The job application black hole

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(CNNMoney.com) -- The Department of Homeland Security on Friday named the first 11 airports to receive full-body scanners paid for with stimulus funds, with most of them going to California and the Midwest.The first advanced imaging technology scanners are being installed at Boston Logan International on Friday, according to the DHS, with scanners going to 10 additional airports by the summer.Facebook
Digg
Twitter
Buzz Up!
Email
Print
Comment on this story    Rapiscan scanners use X-ray technology to detect objects hidden under clothing.Logan, the departure point for two of the airplanes hijacked on Sept. 11, 2001, is the only airport in the Northeast to receive a full-body scanner. None of the airports in the New York City area are included in the first wave of installations, despite the city's status as a prime target for terrorists."The Transportation Security Administration deploys imaging technology based on risk airport readiness and operation suitability," said TSA spokeswoman Sarah Horowitz, when asked why none of the scanners were installed in or near New York City. "TSA anticipates announcing the next deployment later on this month."Chicago O'Hare International will be the next location to get one, with installation scheduled for next week, according to the DHS.Scanners will be installed in three other Midwestern airports in addition to O'Hare, including Port Columbus International in Ohio, Kansas City International in Missouri, and Cincinnati/Northern Kentucky International.Another four are slated for California airports, including Los Angeles International, San Diego International, Oakland International and Mineta San José International.Two scanners are slated for Southern airports: Charlotte Douglas International in North Carolina and Fort Lauderdale-Hollywood International in Florida.0:00
      /6:26Why we need a second stimulusThe U.S. government is using $25 million in stimulus money to buy and install 150 full-body scanners in airports this year, to ramp up security and create jobs."By accelerating the deployment of this technology, we are enhancing our capability to detect and disrupt threats of terrorism across the nation," said DHS secretary Janet Napolitano in a press release on Friday. "These 11 airports will be the first of many to receive this enhanced technology as a result of the Recovery Act."The scanners are manufactured by Rapiscan, a subsidiary of Hawthorn, Calif.-based OSI (OSIS). They cost from $150,000 to $180,000 each. Peter Kant, vice president of global government affairs for Rapiscan, told CNNMoney.com in January that the government contract helped to create 25 jobs. The company did not immediately return call for comment on Friday.The soon-to-be-installed advanced imaging scanners use X-rays to provide detailed images of hidden objects in or under a person's clothing, such as weapons or explosives. According to Kant, this type of technology could have been used to prevent the alleged Christmas Eve bomber from boarding the Amsterdam-to-Detroit flight with explosives hidden in his underwear.The Transportation Security Administration has already implemented 40 scanners using a different type of technology called "millimeter wave advanced imaging" in 19 airports servicing Los Angeles, Washington, D.C., Atlanta, Miami, Detroit, Dallas and other cities. These scanners were manufactured by L-3 Communications Corp., (LLL, Fortune 500) based in Woburn, Mass.


    
        
         
      
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Battle-tested: From soldier to business leader  Stimulus to bring body scanners to airports  Airlines ripe for another merger, experts say





First Published: March 5, 2010: 12:55 PM ET

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(CNNMoney.com) -- The U.S. economy grew at a slightly faster pace than originally thought during the last three months of 2009, according to a government report Friday.The nation's gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 5.9% in the quarter, the Commerce Department reported. Economists surveyed by Briefing.com had forecast that the revision would show the same 5.7% growth that was originally reported a month ago.Facebook
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Comment on this storyThe report is another sign that the U.S. economy has pulled out of the deepest downturn since the Great Depression. The solid growth, the best improvement for the U.S. economy in more than six years, follows a 2.2% annualized increase in the third quarter. Most economists now agree that the recession probably ended at some point last summer.Still, the strong end of 2009 wasn't enough to make up for the even larger declines in the first half of the year. For the full year, GDP fell 2.4%, the biggest decline in the annual reading since 1946.The recovery is widely perceived as fragile.  Federal Reserve Chairman Ben Bernanke testified to Congress this week that the central bank will need to keep interest rates low in order to support the economy.The recovery is even less apparent to the typical American. Job losses have continued in all but one month and most economists believe unemployment will stay close to 10% for much of the year. Credit remains tight for small businesses and consumers and the recovery in housing prices is uneven at best. The most recent survey of 5,000 American consumers by the Conference Board found the greatest level of worry about the current state of the economy in 27 years."The fourth quarter GDP revision tastes great, but is less filling," said Robert Dye, senior economist of PNC Financial Services Group. "We need the meat and potatoes of private-sector job creation in order to sustain this recovery."This GDP reading showed consumers still very much on the sidelines, as spending by individuals increased at a far more modest 1.7% annual rate in the quarter. Instead, it was businesses and the federal government that led the way on growth. More than half the growth in the quarter was due to the fact that businesses were no longer slashing inventories the way they did in the first three quarters of the year. Spending on equipment and software, often seen as a proxy for business investment, grew at an 18.2% rate in the period.Nondefense spending by the federal government grew at an 8.3% rate. But budget-strapped state and local governments cut spending at a 2% rate, while defense spending fell 3.5%, leading to a decline in overall government spending.A 22% rise in exports also was a major contributor to growth.The lift from the rebuilding of inventories and the government stimulus package passed last year is expected to wane later this year, meaning growth will likely slow to a more modest rate. Economists surveyed by the National Association of Business Economics forecast 3.1% growth this year and 3.2% in 2011.


    
        
         
      
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Bernanke concerned about weak jobs  Consumers believe economy is worst in 27 years.  Economists: Recovery firmly on track





First Published: February 26, 2010: 8:36 AM ET