BUREAU OF LABOR STATISTICS, DAILY REPORT, MONDAY, MAY 13, 2002: A sharp decline in food prices out-weighed the increase in gasoline and tobacco prices, causing the producer price index to drop 0.2 percent in April, compared with a 1.0 percent increase in March, according to the Bureau of Labor Statistics. The prices of consumer foods dropped 3.2 percent in April, compared with a 0.6 percent increase in March, BLS said. The so-called core rate of wholesale inflation -- finished goods minus food and energy -- increased 0.1 percent in April. Over the year, the core PPI has risen 0.4 percent (Daily Labor Report, page D-1).
Wholesale prices fell 0.2 percent in April, led by the biggest drop in food costs in nearly 3 decades. The decline in the producer price index was a big turnaround from the sharp 1 percent increase registered in March, the Labor Department reported. Excluding volatile food and energy prices, the "core" rate of wholesale inflation rose 0.1 percent for the second straight month (The Washington Post, May 11, page E2). Producer prices fell unexpectedly in April as food costs showed the biggest decline in almost 3 decades and sluggish demand made it harder for companies to charge more, the government reported today. The Producer Price Index, which measures prices paid to factories, farmers, and other suppliers of goods and materials, dropped 0.2 percent after gaining 1 percent in March, the Labor Department said. Excluding food and energy, the index rose 0.1 percent, the 11th consecutive reading of that size or smaller (Bloomberg News, The New York Times, May 11, page B2). April's unexpected decline in U.S. wholesale prices, which includes the biggest drop in food prices in 28 years, suggests inflation is abating even as the economy rebounds. The Labor Department said Friday the producer price index for finished goods fell 0.2 percent, the first decline in 4 months. The drop largely reflected a 3.2 percent fall in food prices and a slowdown in the growth of energy prices: When food and energy items are excluded, the "core" index rose 0.1 percent, the same rate as in March. Excluding a 3.9 percent increase in tobacco prices, core prices declined 0.1 percent; according to Morgan Stanley (The Wall Street Journal, page A6). Writing on trade unions Mary Ellen Slayter (The Washington Post "Career Track" feature, page E4) says "Although a 1999 survey by Peter D. Hart Research Associates, Inc. found that young adults (18 to 34) are twice as likely to think positively about unions than negatively, many young workers don't quite understand how unions work." In her article, she quotes Bureau of Labor Statistics' data, saying "...union members made 15 percent more than nonunion workers in 2001, according to the U.S. Labor Department. On average, union workers made $718 a week in 2001; nonunion workers made $575." One commonly cited complaint (about union membership) is the cost of dues. "Most unions set dues as a percentage of pay. Those who make more, pay more," says Slayter. Another common objection is that unions aren't suitable for "professionals" or intellectual workers, that they are only appropriate for factory workers. White-collar workers generally believe they should negotiate individually based on their talent and skills, not based on where they fall under the union contract. This is one reason why there are fewer union workers today than 10 years ago. In a service economy, individual talents, which are often hard to judge objectively, allow some to advance in their careers faster than others. In 2001, 13.5 percent of wage and salary workers were union members, unchanged from 2000, according to the U.S. Labor Department. This is a significant decline from the high of 20.1 percent in 1983, the first year such statistics were reported. Maintaining a gradual rate of improvement, hiring plans for most industries are stronger for the third quarter than they have been in more than a year, the latest Manpower, Inc. survey shows. It was the second consecutive quarter in which job prospects improved. In its second-quarter survey, Manpower projected a turnaround as many industries pulled out of recession. Manpower's survey of nearly 16,000 firms showed that 27 percent plan to add employees in the third quarter, up by 6 percentage points from the second-quarter reading of 21 percent. Only 8 percent of employers said they plan layoffs for the third quarter, down from 10 percent reporting such plans for the second quarter. Manufacturing employment gains projected by the latest survey are especially encouraging, given the long-running downturn in that sector, Manpower Chairman Jeffrey Joerres said (Daily Labor Report, page A-9; Melissa McCord, Associated Press, http://www.nypost.com/apstories/business/V4788.htm). DUE OUT TOMORROW: College Enrollment and Work Activity of 2001 High School Graduates
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