03/29/2024

News

The California Metro Area With a European-Style Jobless Rate

The city of El Centro, Calif., has an unemployment rate of 19.9%, the highest of any U.S. metropolitan area and a level comparable to some of the most troubled European economies.

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U.S. Economic Growth Nearly Stalls Out

The U.S. economy slowed to a crawl at the start of the year as businesses slashed investment, exports tumbled and consumers showed signs of caution, marking a return to the uneven growth that has been a hallmark of the nearly six-year economic expansion.

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Corinthian’s Last Rites

On Monday the Santa Ana-based for-profit shut down its remaining 28 schools, which no buyer would purchase amid the government’s regulatory ambush. The closure displaces 16,000 or so students—many mere months away from graduation—and 2,500 workers.

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Families Still Haven’t Fully Recovered from the Recession

Data released Thursday by the Labor Department shows that the number of families with at least one unemployed member fell to 6.5 million last year from 7.7 million in 2013. But at 8%, the percentage of such families remains above pre-recession levels–6.4% in 2006 and 6.3% in 2007. A breakdown by racial group shows how the effects of the downturn still linger.

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Oil States See Slumping Employment as Texas Loses 25,000 Jobs in March

The report on state unemployment rates underscores the weakening of a wide set of economic data in recent months. Reports on retail sales, industrial production and home building have all bolstered the case that the economy lost momentum in the first quarter of 2015. The latest report on state employment shows that the weakening occurred across much of the nation.

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Editorial: Calfiornia’s Farm-Water Scapegoat

“Between 1993 and 2006—normal years for precipitation—Central Valley Project allocations averaged 75% for farmers and 94% for urban users south of the Delta. (Those in the north get more in part because they aren’t affected by pumping restrictions.) During the subsequent three-year drought, agriculture was cut to 33% and cities 70% on average. Since 2012 agriculture has averaged 15% and cities 55%. Supplies for wildlife refuges were only recently curbed to 75% this year. Farmers are getting zip. . . . Farmers have adapted to this undeclared water rationing in part by fallowing land. Between 1992 and 2012, about 900,000 acres of land was removed from production, according to the USDA. More than 500,000 acres have since been fallowed. One result is double-digit unemployment across the Central Valley—11.8% in Tulare, 13.1% in Fresno, 13.2% in Merced and 14.4% in Porterville.”

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Jobs Report: U.S. Adds 126,000 Jobs; Unemployment Steady at 5.5%

Nonfarm payrolls rose by a seasonally adjusted 126,000 jobs in March, the Labor Department said Friday. That was the smallest gain since December 2013. The average monthly gain in the first quarter was 197,000, down from an average of 324,000 in the final three months of 2014.

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Fed’s Brainard: ‘Great Recession’ May Have Long-Lasting Financial Consequences for Younger Americans

“High student debt, poor job prospects and shifting attitudes are inhibiting homeownership among younger Americans who came of age during the latest recession, potentially hindering the accumulation of wealth for that generation, Federal Reserve governor Lael Brainard said Thursday. “If the decline in homeownership among young people proves persistent, the implications for asset building for the future could be of concern, since homeownership remains an important avenue for accumulating wealth, particularly for those with limited means,” Ms. Brainard said in remarks prepared for a community development research conference.”

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Private-Sector Jobs Rise at Mediocre Pace in March, ADP Says

The number was far below expectations. Economists surveyed by The Wall Street Journal projected ADP would say 225,000 new jobs were added in March. The February ADP increase was revised 214,000 from 212,000

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U.S. Inflation Undershoots the Fed’s 2% Target for the 34th Straight Month

In projections released earlier this month, Fed policy makers lowered their estimate of the longer-run jobless rate to a range between 5% and 5.2%. That threshold represents what some economists call the nonaccelerating inflation rate of unemployment, or Nairu. In English, it’s the lowest unemployment rate that won’t stoke inflation.

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Two New Research Papers That Could Upend Our Understanding of Economic Inequality

One new paper, being presented this week as part of the Brookings Papers on Economic Activity, suggests the rising share of capital income can be explained entirely by housing. The second paper, presented at the same event, shows that political support for redistribution is not increasing in the U.S., even as inequality rises.

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Drop in Manufacturing Takes Shine Off Small Gain in Industrial Production

It’s unclear whether the decline in manufacturing is temporary linked to cold weather or if it’s a sign of underlying economic weakness that could persist, economists said.

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A Little-Watched Report Is Boosting Estimates for U.S. Economic Growth in Late 2014

Revenue at health-care and social-assistance companies climbed 4.2% in the fourth quarter from the prior three months, up sharply from the third quarter’s 0.3% growth, the Commerce Department said Wednesday in its Quarterly Services Survey. The data weren’t adjusted for seasonal variations or price changes.

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U.S. Tax System Encourages Foreign Takeovers, Business Roundtable Study Says

The findings–to be released as soon as Wednesday–are likely to fuel business demands that Congress rewrite U.S. tax rules. Businesses want Congress to lower the U.S. corporate tax rate, now the highest among developed countries at 35%. They also want to loosen the U.S. system’s unusual global reach.

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U.S. Manufacturers Trim Optimism Amid Strong Dollar and Rising Health-Care Costs

U.S. manufacturers expect sales to continue to grow this year, but fear the effects of rising health-care costs, a strong dollar and the West Coast port strike, according to a new industry survey.

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