Positive news in more jobs, cheaper gas
As a long line of job-seekers wait, Lockheed Martin military relations manager Dave Wallace, left, shakes hands with Joe Archatowski, of Lansdale, Pa., at a job fair aimed at helping military and former military members transition to civilian jobs, in Cherry Hill, N.J. (May 3, 2011) Credit: AP
An encouraging jobs report and predictions that gas prices are about to fall from near-record levels combined Friday to provide Long Islanders with some positive economic news.
The U.S. Department of Labor said the nation's economy added 244,000 jobs in April, the strongest showing since May 2010, when temporary census hiring was boosting employment numbers. Discounting the census effect in 2010, the economy added the most jobs since March 2006, according to the federal data.
The private sector continued to provide the only momentum in the slowly recovering market. It added 268,000 jobs. The government sector lost 24,000 jobs last month, primarily because of the layoffs of local government employees, including teachers.
Meanwhile, energy experts said motorists should see relief soon, thanks mostly to an unexpected and historic drop in crude oil prices, which fell this week by $16.75, to settle in New York Friday at $97.18 a barrel. Oil had topped $114 Monday but weakness of the euro against the dollar sparked a rush for the exits by commodities investors. "In a few days you'll start to see a few cents at the pumps," said gasoline analyst Sander Cohan of the consulting firm Energy Security Analysis Inc. in Wakefield, Mass.
Andy Lipow, president of the Houston consulting company Lipow Oil Associates LLC, says wholesale "rack" prices to stations are dropping and that pump prices could drop by 15 cents in the next few weeks. "We should see a decline in retail prices over the next seven to 14 days," he said.
On balance, the latest jobs data indicate a decidedly mixed picture. The unemployment rate ticked up from 8.8 percent in March to 9 percent in April, the 27th consecutive month of jobless rates above 8 percent, according to federal data.
Because the economy "isn't growing fast enough," the rate will remain above 8 percent through 2012, said Gad Levanon, associate director of macroeconomic research at The Conference Board, a Manhattan business-research group.
Energy analysts, meanwhile, warn that the improving picture for motorists could quickly change on events in the Middle East, a sharp decline in the dollar's value or anything else that leads investors to believe that oil futures are worth more. Lipow says there's also concern that floodwaters in the Mississippi River might affect shipping and refinery operations near New Orleans.
Kevin Beyer, president of the Long Island Gasoline Retailers Association, said that wholesale prices locally fell from 10 to 15 cents on Thursday and gained about five cents back Friday morning but that local stations will be reluctant to drop prices until they're sure the declines represent a trend.
On Friday, the Long Island average for regular inched upward by a fraction of a cent -- to $4.281 a gallon, the AAA said. But, for the first time in 45 days, the national average in the AAA survey fell -- by a fraction of a penny, to $3.984.
Economists have worried about rising gasoline and food costs hurting consumer spending on other items, which would slow job growth. Levanon says the economy will continue to be weighed down by persistent wage stagnation and inflation.
Still the jobs data and anecdotal reports indicate a strong bounce back in some sectors. For example, the professional and business services category, which added 51,000 jobs in April, did so in part because of stronger demand for computer specialists. At Viotech Solutions, a Farmingdale high-tech staffing company, demand has increased for permanent and consulting jobs for Web developers, among others, said owner Barbara Viola.
With Reuters
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It's Your Business! This month's roundup including how to protect yourself from digital scams Join NewsdayTV as we recount the top business stories on LI that you need to know about.
