ECONOMY FACTS

Everything I Know Is Wrong: It's too bad the economy is in such bad shape...
It's too bad the economy is in such bad shape...

Just think how good the news would be if it were in good shape.

Payroll growth averaged 160,000 per month in 2005; it has averaged 229,000 in the past three months. The drop in the jobless rate in January to the lowest level since April 2001 was a surprise: Economists surveyed by MarketWatch expected the unemployment rate to remain at 4.9%.

The unemployment rate has dropped to 4.7%.

Average hourly wages rose 7 cents or 0.4% to $16.41. Economists expected a 0.3% gain. Average hourly earnings are up 3.3% in the past year, about the same as the inflation rate.

The average work week was steady at a revised 33.8 hours. Total hours worked in the economy increased 0.2%

Payrolls in the goods-producing sectors increased by 58,000, including 46,000 in construction and 7,000 in manufacturing. It's the third increase in factory jobs in the past four months.

Payrolls in the services sector rose by 135,000 in January. Education and health care industries added 39,000 jobs; leisure and hospitality industries added 26,000. Retail jobs fell by 1,500.

Of 278 industries, 57.6% were hiring in January. Among 84 manufacturing industries, 47.6% were hiring.

My wife was "discussing" the state of the economy with a liberal friend who was convinced that it was in seriously bad shape. In the end my wife said that it must be "only the numbers" that made it look so good. Her friend agreed.