Friday, January 05, 2007

Will Democrats ever give credit to tax cuts?

The job numbers for the month of December are out and once again the “greatest story never told”, to steal a line from Larry Kudlow, continues to live on.

The report from the Labor Department showed the U.S. added another 165,000 jobs in December compared to a forecast of only 100,000. Wages, the hot issue for Democrats, jumped 4.2% over last year, which was double the rate of inflation during the same period.

Another interesting note about the survey is economist claim that the problem with our current job market is not growth but instead not enough skilled workers. Even New York, for those that say it’s in “shambles”, is having problems filling skilled jobs. The recent Federal Reserve Beige Book for the district of New York stated:

“A major employment agency reports that the labor market has grown increasingly tight, and that recruiters are using referral bonuses more aggressively to find skilled workers; moreover, firms are reported to be making increasingly widespread conversions from temporary to permanent positions. Hiring is reported to be particularly strong in the legal services and banking industries; a rebound in demand is also noted for workers in public relations and advertising. A contact at a financial industry association indicates that business activity, revenues and profits have strengthened in recent months, and that hiring activity has been solid.”

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