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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (Oct. 6, 2018)
Page 8A BUSINESS East Oregonian Saturday, October 6, 2018 US regains ultra-low 3.7 percent unemployment By CHRISTOPHER RUGABER AP Economics Writer WASHINGTON — The last time the U.S. unem- ployment rate was roughly as low as the 3.7 percent it is now — December 1969 — the economy was over- heating, inflation was spik- ing and a short recession soon followed. Could that happen again? Probably not anytime soon, most economists say. Yet there are some surpris- ing similarities between today’s economy and the late 1960s, when the unem- ployment rate remained mostly below 4 percent for four straight years. The jobless rate, the gov- ernment reported Friday, is now at its lowest level since the 3.5 percent it reached 49 years ago. And the strength looks likely to endure. There are a record number of open jobs, consumers are confi- dent and economic growth has been brisk. Ameri- ca’s economic expansion is now the second-longest on record, having already surpassed the boom of the 1960s. Despite the similar job- less rates, the economy then was very different and by some measures stron- ger. Nearly a third of U.S. jobs were in manufacturing, which provided solidly mid- dle-class pay and benefits. Prosperity was more broadly shared, with less economic inequality. It’s a period that is fre- quently recalled with nos- talgia, although racial and ethnic barriers, educational disparities and institutional sexism prevented many mil- lions of Americans from par- ticipating in it. “Prosperity has become the normal state of the Amer- ican economy,” a White House report in 1969 said. Incomes, even after accounting for taxes and inflation, jumped 7 percent in 1964, the best showing of that decade. The biggest annual gain in the current decade, so far, was just 4.2 percent in 2015. “A family could afford to live on one income and AP Photo/Lynne Sladky, File In this June 21, 2018, file photo, job applicants talk with representatives from Aldi at a job fair hosted by Job News South Florida, in Sunrise, Fla. On Friday, Oct. 5, the U.S. government issued the September jobs report. Where the jobs gains did the most good WASHINGTON (AP) — The unemployment rate for Americans of His- panic or Latino ethnic- ity fell to 4.5 percent in September, matching a record low hit in July. At the same time, the job- less rate for white Amer- icans edged down to 3.3 percent, their lowest level since December 1969. The Labor Depart- ment said Friday that employers added a total of 134,000 jobs last month. The unemployment rate reached 3.7 percent, its lowest point in nearly five decades. Americans from a wide range of demo- graphic groups have ben- own a house and a car,” said Diane Swonk, chief econo- mist at Grant Thornton, a tax advisory firm. In the late 1960s, more than 95 percent of men in their prime working years either had a job or were looking for one; today’s cor- efited from the longest streak of hiring on record. The jobless rate for prime-age workers — ages 25 to 54 — declined to 3 percent. That’s the low- est figure since Decem- ber 2000. And Americans with only a high school diploma recorded their best unemployment rate since 2001. The data for demo- graphic groups came from a survey of households that is part of the Labor Department’s monthly jobs report. Professional ser- vices led the way in hir- ing gains in September, adding 54,000 jobs in a responding figure is roughly 89 percent. Still, a sharp influx of women into the workforce in the 1980s has offset the decline in men in the job market. Overall, a greater proportion of Americans are now working or looking for wide-ranging category that includes management consultants, administra- tive support and computer systems designers. That sector has contributed more than a half-million jobs over the past year. Construction, manu- facturing, health care also posted solid gains. Trans- portation and warehous- ing added nearly 24,000 jobs, led by couriers, mes- sengers and warehousing staff. Retail and restaurants shed jobs in September, although the weakness stemmed in part from the temporary impact of Hur- ricane Florence. work than back then. Back in December 1969, a mild recession was begin- ning. The long stretch of low unemployment had led to a classic case of an over- heating economy. Growth was a robust 5.8 percent in 1964. Yet President Lyndon Johnson added more stimu- lus by ramping up govern- ment spending to pay for his expansive “Great Society” anti-poverty programs and for the Vietnam War. Steel mills and other fac- tories cranked out more goods to support the war effort. Annual growth topped 6 percent in 1965 and 1966. The unemployment rate fell below 4 percent in February 1966. With more Americans splurging on appliances, televisions and cars, infla- tion started to accelerate. Prices jumped 4.7 percent in 1968. One in three work- ers belonged to a union, and many union contracts required annual cost of liv- ing increases. So did many nonunion contracts. All that ignited what economists call a “wage- price spiral”: Paychecks grew to keep pace with infla- tion. Inflation, in turn, rose as companies raised prices to afford to pay those higher wages. Inflation hit 6.2 per- cent in 1969. The stage had been set for more than a decade of soaring prices, escalated by gasoline-price spikes in the 1970s. Responding to run- away inflation, the Federal Reserve jacked up the short- term interest rate it controls to nearly 9.25 percent in the fall of 1969. Congress also raised taxes in a belated effort to pay for the war and social spending. That dou- ble-whammy tipped the economy into a recession, with annual growth plum- meting to just 0.2 percent in 1970. In December that year, the unemployment rate jumped to 6.1 percent. The rate wouldn’t fall below 4 percent again for nearly 30 years, until September 2000. By many measures, the U.S. economy is now in a far different place. The Fed’s biggest chronic prob- lem hasn’t been overly high inflation. Until very recently, the problem has been overly low inflation. The Fed’s preferred inflation gauge remained below its 2 per- cent target for six years until finally touching it in May this year. In part, that’s because consumer spending is com- paratively weak. And, as a consequence, economic growth hasn’t topped 3 per- cent for a full calendar year since 2005 — never mind the 6 percent it achieved in the mid-1960s. Inflation has also been constrained by price competition among online retailers, low-priced imported goods and rela- tively weak pay raises for many Americans. After the 2008 financial crisis, the Fed kept its bench- mark rate at a record low near zero for seven years. Even after a succession of rate hikes, the Fed’s key rate remain in a still-low range between 2 percent and 2.25 percent. Still, there are parallels between the two eras. The economy had already grown, if modestly, for more than seven years when President Donald Trump added stim- ulus in the form of corpo- rate and individual tax cuts. Congress later passed legis- lation that increased spend- ing on defense and social programs. BRIEFLY Chuckwagon Cafe cooks up anniversary celebration HERMISTON — In recog- nition of 48 years in business, the Chuckwagon Cafe is serving up prizes, a drawing and special savings. The celebration runs Tuesday, Oct. 9 through Saturday, Oct. 13 from 6 a.m. to 8:30 p.m. The cafe is located at 81027 N. Highway 395, Hermiston. The biggest dis- count, said owner Cathy Stolz, is an a la cart New York steak for $4.80. Established in 1970 by Dorothy (Stolz’s mother) and Duane Bea- son, the Chuckwagon Cafe has been at its current location since 1979. Prior to that it operated from the building that now houses The Nickel. The cafe’s first loca- tion, which burned in 1972, was a small drive-in/diner on Highway 395 where Motel 6 now resides. The cafe supports local fund- raising projects that benefit area students. In addition to actively participating in Hermiston’s annual Community Fellowship Dinners each Thanksgiving and Christmas, Stolz is proud to honor veterans each year on Veterans Day with a free SOS lunch. For more information, contact 541-567-6329, chuckwagon395@ gmail.com or visit www.chuck- wagoncafe.net. Business workshop brings ‘A’ game BOARDMAN — A business education training workshop that focuses on workplace ethics is coming to Boardman. “Bring Your ‘A’ Game” is a work ethics training workshop that was developed with the needs of educators and workforce devel- opment professionals in mind. Presented by Josh Davies, CEO of The Center for Work Ethic Devel- opment, the session is interactive and promises to provide a lasting impact. The workshop is Thursday, Oct. 25 from 8 a.m. to noon at the SAGE Center, 101 Olson Road, Boardman. The cost is $300 per business (for up to three partici- pants) or $150 per business under 10 employees (for two people). A catered lunch is available for an additional $15 fee. Davies was named by Train- ing Magazine as one of the top 10 trainers under 40 in Amer- ica. Kalie Davis, workforce train- ing program manager at the Port of Morrow, heard him speak at a conference last spring and is excited to bring him to Boardman. While in town, Davies also will visit with students at Riverside High School. For more information or to reg- ister, call the Boardman Chamber of Commerce at 541-481-3014 or visit www.boardmanchamber.org. Breakfast meeting to discuss state issues, solutions Business and community lead- ers will discuss challenges and solutions that are impacting East- ern Oregon during the upcoming Business to Business Breakfast in Hermiston. The special speaker is Jeremy Roger, vice president of the Ore- gon Business Council. A focal point of the discussion will be how Eastern Oregon can help shape the election outcome by participating. The free event, which includes breakfast, is Tuesday, Oct. 9 at 8 a.m. at the Hermiston Com- munity Center, 415 S. Highway 395. While the event is free, those attending need to RSVP. Also, bring your business card to enter the quarterly drawing. The area’s future growth and prosperity depend on how the community responds to this fiscal crisis. People are urged to roll up their sleeves and work together to find practical solutions in dealing with Oregon’s budget. For more information or to register, contact the Hermiston Chamber of Commerce at info@ hermistonchamber.com, 541-567- 6151 or visit www.hermiston- chamber.com. Now Accepting Residents A as Join we open AAA our as new we open location: our new location: 248 SW Dorion Avenue W Dorion Avenue ASSISTED LIVING • MEMORY CARE ( 541) 938-5693 RAND GRAND OPENING OPENING Tuesday, October 9 th from 11:00 a.m. – 1:00 p.m., Ribbon Cutting at 11:00 a.m. Refreshments will be served, and the first 50 attendees receive a AAA Road Atlas! www.cascadevalleyassistedliving.com AAA PENDLETON SERVICE CENTER 1010 NE Third, Milton Freewater, OR 97862 www.cascadevalleyassistedliving.com 248 SW Dorion Avenue, Pendleton, OR 97801 • 541.276.2243 • AAA.COM
