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BUSINESS Monday 7 January 2019
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US employers went on a surprising hiring spree in December

By JOSH BOAK on the Fed and its chairman
Associated Press over the central bank’s
WASHINGTON (AP) — U.S. rate increases have also
employers went on a hir- worried investors, though
ing spree in December, Powell may have eased
adding a surprising 312,000 some of those concerns Fri-
jobs and providing a dose day when he stressed that
of reassurance about the he would not resign if the
economy after a turbulent president told him to do so.
few months on Wall Street. The strong job growth sug-
The job gains reported gests employers believe
Friday by the Labor De- U.S. consumer spending will
partment came despite stay robust.
a trade war with China, a Health care and educa-
global slowdown and a tion added 82,000 jobs last
partial government shut- month, the largest jump in
down now entering its third nearly nine years. Restau-
week. rants and drinking places
The nation’s unemploy- posted a net gain of 40,700
ment rate rose slightly to jobs. Builders added 38,000
3.9 percent last month, but construction jobs, while
that, too, was considered manufacturers increased
a positive sign, reflecting their payrolls by 32,000
an increase in Americans In this Nov. 2, 2017, file photo a recruiter from the postal service, right, speaks with an attendee of workers.
beginning to look for work. a job fair in the cafeteria of Deer Lakes High School in Cheswick, Pa. Businesses are still search-
And average hourly pay Associated Press ing for more workers.
improved 3.2 percent from The torrid hiring in Decem- coexist for very long. Either being jeopardized by the Fresh Coat Painters, based
a year ago. ber far outstripped the weakening demand will tariff war between Wash- in Cincinnati, plans to near-
Stocks surged on the news, 180,000 jobs investors had lead firms to dial back the ington and Beijing, and an ly double the 300 employ-
along with word that the been anticipating and pace of hiring or the robust important gauge of U.S. ees who paint homes and
U.S. and China will hold could help ease fears that pace of hiring will lead firms manufacturing posted its businesses as it expands this
trade talks next week and the economy’s expansion to ramp back up produc- steepest decline in a de- year across this country. The
comments from Federal — now in the middle of its tion.” cade Thursday. franchiser is also launch-
Reserve Chairman Jerome 10th year — may be com- In recent weeks, financial China, the world’s second- ing an apprenticeship pro-
Powell that the Fed will be ing to an end. markets have plunged largest economy, is also gram to attract workers, in
flexible in judging whether “The labor market is very amid concerns that the U.S. mired in a slowdown, its addition to providing high-
to raise interest rates fur- strong even though the could be in a recession by consumers losing much of er pay and benefits.
ther. The Dow Jones indus- economy appears to be 2020. The Dow suffered its their appetite for real es- Tara Riley, president of
trial average shot up 747 slowing,” said Eric Wino- worst December since the tate, iPhones, Ford vehicles Fresh Coat, said that fran-
points, or 3.3 percent. grad, senior U.S. economist middle of the Depression in and jewelry from Tiffany & chise owners are having to
President Donald Trump at the investment manage- 1931. Co. actively search for workers
called the job growth ment firm AllianceBernstein. Major companies such as The U.S. government shut- instead of simply posting
“GREAT” on Twitter. “Those two things cannot Apple say their sales are down and Trump’s attacks ads.q

Investors, farmers guessing as shutdown delays crop reports

By SCOTT McFETRIDGE season. Depending on the leasing some information,
Associated Press estimates, the price of the such as the Labor Depart-
DES MOINES, Iowa (AP) — commodities can rise or ment’s monthly jobs report
The U.S. Department of fall as they show the cur- , the USDA hasn’t released
Agriculture announced Fri- rent supply and forecast key reports since Dec. 22.
day that it must delay the how many acres will be This includes the closely
release of key crop reports devoted to different crops watched World Agricultural
due to the partial govern- in the coming months. The Supply and Demand Esti-
ment shutdown, leaving in- government shutdown has mates report and informa-
vestors and farmers without now forced the delay of tion about specific crops,
vital information during an such reports for two weeks, such as winter wheat and
already tumultuous time for and uncertainty about the canola seedings. The lack
agricultural markets. commodity supply will only of information comes amid
The USDA had planned In this Nov. 21, 2018, file photo, Justin Roth holds a handful of grow as more time elapses, the uncertainty of trade
to release the closely soybeans at the Brooklyn Elevator in Brooklyn, Iowa. Hultman said. USDA reports with China, where tariffs led
watched reports Jan. 11 Associated Press provide the foundation for to an abrupt drop in U.S.
but said that even if the were no indications the data provider DTN. “It’s a understanding the U.S. ag- agricultural exports to the
shutdown ended immedi- shutdown would end soon. lot of guesswork.” ricultural industry, and be- country. There were indica-
ately , the agency’s staff “The longer it goes on, the The reports detail the size of cause they also estimate tions that China was begin-
wouldn’t have time to re- more distorted our refer- the 2018 harvests of corn, farm production in other ning to resume at least limit-
lease the reports as sched- ence points get,” said grain soybean, wheat and other countries, they are essen- ed purchases of U.S. crops,
uled. Congressional leaders market analyst Todd Hult- crops and give an early tial for understanding glob- but because of the govern-
met with President Donald man, of Omaha, Nebraska- estimate for what farmers al crop markets. Although ment shutdown it’s unclear
Trump on Friday but there based agriculture market will plant in the upcoming the government is still re- what’s happening.q