WEBVTT - DOL's Shierholz: Increase in Hours Offsets Job Growth (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleventh Rio to Washington,

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<v Speaker 1>d C, Bloomberg to Boston, Blueberg twelve hundred to San Francisco,

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<v Speaker 1>and around the globe the Bluemberg Radio plus Zapp and

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<v Speaker 1>Bloomberg Dot Gone. This is Taking Stock. Coming up on

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<v Speaker 1>Taking Stock to government data showing that employers added just

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<v Speaker 1>a hundred and sixty thousand jobs in April, the unemployment

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<v Speaker 1>or rate holding steady at five percent. We're gonna be

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<v Speaker 1>speaking with Heidi Shierholtz, Labor Secretary. Tom Perez is Chief

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<v Speaker 1>Economists find out what's going on with hiring. But right

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<v Speaker 1>now we want to know what's going on with the

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<v Speaker 1>world and business news. Let's go to Catherine Cowdery in

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<v Speaker 1>the Bloomberg news room. Thank you, bam Well. The stock

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<v Speaker 1>market is staging a comeback. Resource producers are rallying, along

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<v Speaker 1>with prices for medals from gold to cover. Treasuries are

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<v Speaker 1>still declining. A slowdown in jobs growth, coupled with accelerating

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<v Speaker 1>weight gains did little to change views on the timing

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<v Speaker 1>for higher interest rates. Mohammad al Aary in Chief Economic

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<v Speaker 1>advisor at Alliance and a Bloomberg View columnist had this

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<v Speaker 1>reaction to the jobs report. If you look at the

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<v Speaker 1>internals of this employment report is actually quite mixed. So

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<v Speaker 1>to conclude that quickly that June is completely out of

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<v Speaker 1>the question and that we're unlucky to get a hike

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<v Speaker 1>in twenty sixteen, I think it's going to fall. We

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<v Speaker 1>check Americas every fifteen minutes throughout the trading Daydale Industrial

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<v Speaker 1>average is up sixty nine points. I gained a four

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<v Speaker 1>tents of a percent of training at seventeen thousand, seven

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<v Speaker 1>hundred twenty nine. S and P five funded up five

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<v Speaker 1>points a quarter percent, trading at two thousand fifty five.

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<v Speaker 1>The NASAC is higher by nine points to tens of

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<v Speaker 1>a percent. Is trading at forty seven twenty six. West

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<v Speaker 1>Texas Centermedia Crude oil up twenty eight cents of barrel

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<v Speaker 1>two thirds of a percent at forty four sixty one.

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<v Speaker 1>Spout gold is of eighteen dollars announced at twelve thirty ten.

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<v Speaker 1>Year Treasury down nine thirty seconds with the yield of

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<v Speaker 1>one point seven seven percent. Among today's stop business stories,

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<v Speaker 1>Amazon dot Com plans to eliminate gaps in its free

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<v Speaker 1>same day delivery service in all twenty seven cities where

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<v Speaker 1>it's offered, responding to complaints at some minority neighborhoods were

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<v Speaker 1>not included. Amazon made the pledge at a statement obtained

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<v Speaker 1>by the Congressional Black Caucus. In a statement, Amazon said

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<v Speaker 1>it will be expanding its Prime same Day service to

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<v Speaker 1>every zip code of the twenty seven cities where the

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<v Speaker 1>service is currently offered. The University of Texas is the

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<v Speaker 1>latest investor to reveal that it was burned by Valiant Pharmaceuticals.

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<v Speaker 1>The once high flying pharmaceutical company is under scrutiny for

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<v Speaker 1>its billing practices. It's two thirty two on Wall Street,

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<v Speaker 1>and that means it's time to get enough data. Some

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<v Speaker 1>of the other stories were following right here on Bloomberg Radio.

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<v Speaker 1>Thank you Catherine from the Bloomberg Newsroom. I'm a Lisa Parenti.

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<v Speaker 1>This news update is brought to you by T two Computing,

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<v Speaker 1>a new kind of I T solutions company for workflow, mobility,

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<v Speaker 1>you gain greater business value. Visit T two computing dot

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<v Speaker 1>com for more information. President Obama says voters need to

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<v Speaker 1>remember that the presidency is quote a serious job and

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<v Speaker 1>not a reality show. Answering questions at the White House today,

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<v Speaker 1>Mr Obama said Americans need to ask themselves whether the

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<v Speaker 1>presumptive Republican nominee really represents their views. There is no

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<v Speaker 1>doubt that there is a debate that's taken place inside

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<v Speaker 1>the Republican Party about who they are and what they represent.

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<v Speaker 1>Um their standard bearer at the moment is Donald Trump.

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<v Speaker 1>Donald Trump is promising to unite a fractured party, but

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<v Speaker 1>he'll have to win over some top Republicans, including how

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<v Speaker 1>speaker Paul Ryan. Former GOP presidential candidate Bobby jin Dall

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<v Speaker 1>says he will support the party's candidate. For me, as

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<v Speaker 1>a conservative, it really is a binary choice. It really

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<v Speaker 1>is what is the conservative thing to do. I'm voting

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<v Speaker 1>for Donald Trump because I don't think we can afford

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<v Speaker 1>four more years of liberal incompetence. Republican National Committee Chairman

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<v Speaker 1>Ryan's previous said today he supports Trump even if he

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<v Speaker 1>disagrees with his tone and some of his ideas. Police

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<v Speaker 1>are asking for the public's health and identifying the people

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<v Speaker 1>who stole a statue from a Roman Catholic church in Brooklyn.

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<v Speaker 1>The sacred heart statue of Jesus swiped from St. Peter

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<v Speaker 1>and Paul Roman Catholic Church on seventy one South third

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<v Speaker 1>Street last weekend. Police have released surveillance video of three suspects.

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<v Speaker 1>Global News twenty four hours a day, powered by our

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<v Speaker 1>twenty four hundred journalists in more than one hundred fifty

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<v Speaker 1>news bureaus around the world. From the Bloomberg Newsroom, I'm

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<v Speaker 1>Alisa Parenti, Catherine, thank you, and now let's get a

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<v Speaker 1>quick update of those equity bandmarks down. Industrial leverages up

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<v Speaker 1>sixty nine points at seventeen thousand, seven hundred twenty nine.

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<v Speaker 1>SMP five, founded he raced earlier, loss is currently up

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<v Speaker 1>five points at two thousand fifty five. The NAZZAC is

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<v Speaker 1>up nearly ten points at six. And that's a Bloomberg

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<v Speaker 1>business flash. He's taking stock with Kathleen Hayes and Grim

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<v Speaker 1>Box on Bloomberg Radio. Employers in the United States scaling

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<v Speaker 1>back there April, hiring amid some eaker economic growth, but

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<v Speaker 1>the wages increased the last month and the work we

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<v Speaker 1>grew longer. Let's find out what's going on with the

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<v Speaker 1>U S economy. We have Heidi Shecherholtz, the chief economist

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<v Speaker 1>for Labor Secretary Tom Perez. Heidi, thanks very much for

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<v Speaker 1>being here, very much for having me. All right, So, Heidi,

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<v Speaker 1>it can you as step back as an economist. You're

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<v Speaker 1>not responsible for the data. You just interpreted looking at

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<v Speaker 1>the details. What does it tell you? So we are

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<v Speaker 1>jobs streak continued in April. We added a hundred and

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<v Speaker 1>sixty thousand jobs, potentually lower than the pace of growth

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<v Speaker 1>that we had been seeing, but it's well above the

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<v Speaker 1>pace that we need to keep the unemployment rate low

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<v Speaker 1>and stable. So just to sort of put a number

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<v Speaker 1>on that, estimates from a wide variety of sources are

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<v Speaker 1>that right now we need around eighty thousand jobs just

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<v Speaker 1>to sort of hold steady. So we got double that.

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<v Speaker 1>So it's not the two hundred thousand plus that we

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<v Speaker 1>have been seeing, but it's a very solid number. The

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<v Speaker 1>other thing that I think is um useful to just

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<v Speaker 1>keep in mind is that there's always a lot of

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<v Speaker 1>two months to month variability in these numbers. Last year,

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<v Speaker 1>we average two hundred twenty nine thousand jobs on average

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<v Speaker 1>per month, and we had three months in the year

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<v Speaker 1>where we got job growth of a hundred and fifty

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<v Speaker 1>thousand or less and so it's just this sort of

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<v Speaker 1>common thing where you see this bouncing around. So we

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<v Speaker 1>don't get too freaked out if it's a lower number,

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<v Speaker 1>we don't get too giddy if it's a really high number. Um,

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<v Speaker 1>this represents pretty solid job growth, alright. If it represents

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<v Speaker 1>a solid job growth, where is the weakness in the

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<v Speaker 1>job in the job sector. Yeah, you know. The thing

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<v Speaker 1>that I think is just the ty ongoing saying that

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<v Speaker 1>I'm got my eyes on with these numbers is age growth.

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<v Speaker 1>And we are seeing some acceleration of wage growth over

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<v Speaker 1>the last year. Wages grew two point five percent with

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<v Speaker 1>low inflation. That means workers are seeing some real gains.

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<v Speaker 1>But we just have a lot of ground make up.

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<v Speaker 1>But the question, but hang on, the question was where

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<v Speaker 1>was the weakness in the actual jobs report. I was

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<v Speaker 1>on the impression that retailers cutting payrolls, and that also

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<v Speaker 1>construction companies had been adding the fewest positions since the

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<v Speaker 1>last June. Yes, you're totally right. I was interpreting jobs

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<v Speaker 1>report broadly. I appreciate it. Go ahead, you are, You're

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<v Speaker 1>absolutely right. So, yes, the retail numbers were low. Um,

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<v Speaker 1>the construction numbers were low. Both of those things, particularly construction,

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<v Speaker 1>UM could be have a big weather component, and it's

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<v Speaker 1>not the weather component that we typically think of, where

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<v Speaker 1>we got a huge snowstorm and that's why the numbers

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<v Speaker 1>were low, which happens on occasion in winter months. This

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<v Speaker 1>is a different story here. Or what we saw is

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<v Speaker 1>extremely mild weather in the in February and March, and

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<v Speaker 1>so some of the hiring that would have otherwise happened

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<v Speaker 1>in April in for example, construction instead got pulled forward

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<v Speaker 1>and so employers hired those people early. So we saw

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<v Speaker 1>big gains in construction in February and March, and this

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<v Speaker 1>and the April numbers and construction looked quite weak by comparison.

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<v Speaker 1>But I think that, UM, I believe due to the

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<v Speaker 1>weather effects of very mild February March that we had.

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<v Speaker 1>I'm not too concerned that we're seeing a an ongoing

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<v Speaker 1>slowdown in construction, but that's definitely something I'll be keeping

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<v Speaker 1>my eyes on. Okay, So now move on to the

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<v Speaker 1>wage growth, but also the workweek. It grew longer for workers. Yeah,

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<v Speaker 1>it increased, that's very good news. I um it had

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<v Speaker 1>picked down earlier, so it's not it's it's still within

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<v Speaker 1>a band that we've been being for quite some time now.

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<v Speaker 1>The work week basically it's kind of moving sideways at

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<v Speaker 1>this point, fluctuating up and down a little bit. But

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<v Speaker 1>one of the things that the increasing workweek just is

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<v Speaker 1>um sort of provide some comfort. When when you get

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<v Speaker 1>a jobs number that's one sixty when everyone expected two hundred,

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<v Speaker 1>one of the things you do is look for signs

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<v Speaker 1>of do I think this is a one off, or

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<v Speaker 1>do I think there's signs that this may be signaling

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<v Speaker 1>some sort of like ongoing softening. And the fact that

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<v Speaker 1>the work week increased is a very good sign that

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<v Speaker 1>that that we didn't see the strong the two plus

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<v Speaker 1>job grows, but the increase in hours means that we're

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<v Speaker 1>um sort of offset some of the the decline and

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<v Speaker 1>job job grows in a way that make it that

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<v Speaker 1>comforts economists, which is that can be a leading indicator

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<v Speaker 1>if we are going to be seeing ongoing dramatic, we

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<v Speaker 1>reduced job growth, I would expect to see ours drop

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<v Speaker 1>rather than increase. And the jobless rate remaining at five

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<v Speaker 1>per cent is that likely to indicate full employment or

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<v Speaker 1>near full employment. So I think that the other signs

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<v Speaker 1>in the labor markets suggest that we aren't there yet,

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<v Speaker 1>that there's still a ways to go. We have made

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<v Speaker 1>enormous progress. The worst of it, the unemployment was ten

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<v Speaker 1>we're now we've now cut that in half, so that

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<v Speaker 1>we've we've made tremendous progress. But I don't think we're

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<v Speaker 1>done yet. And so just to put it in context,

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<v Speaker 1>before the recession, for the two years before the Great

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<v Speaker 1>Recession hit, the unemployment rate average four point six percent

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<v Speaker 1>and today at five. Thank you very much, Heidi Shareholds,

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<v Speaker 1>the economist, Chief economist for the Department of Labor Secretary

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<v Speaker 1>Tom Perez. You're listening to taking Stock on Boomberg Radio.

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