Financial 411: Weekly Business Roundup
Friday, May 06, 2011
Unemployment Back at 9%, Despite High Job Numbers
Employers added more than 200,000 jobs in April for the third straight month. But the unemployment rate still rose to nine percent. That's in part because some people jumped back into the job market actively looking for work, so they're now counted as unemployed. Private-sector employers created nearly 270,000 jobs last month. That's the most since February 2006.
The gains were widespread. Retailers, factories, financial companies, education, health care and even construction companies added jobs, while federal, state and local governments cut jobs.
Mayor Bloomberg Unveils Budget
Mayor Michael Bloomberg unveiled a budget on Friday that includes the loss of more than 6,000 teachers. He also cut the budgets for several city agencies, including parks and recreation, the libraries and children's services agency. The mayor said he "can't put off the hard decisions" because next year's budget is expected to be worse, with budget deficits projected in the $5 billion range for each of the next three fiscal years. The mayor’s proposal must still be approved by the City Council. Speaker Christine Quinn and other members say they'll do everything they can to prevent such big cuts to the city's workforce.
Consumers used their credits card more in March, marking only the second increase in more than two years since the height of the financial crisis. The Federal Reserve said consumers also increased their overall borrowing, to finance car purchases, school tuition and other things.
Markets rose today. The Dow gained 55 points, to close at 12,639. The S&P 500 added five points, closing at 1,340. The Nasdaq ended the week at 2,828, up 13 points.
Reviewing this Week's Business and Economic News
Greg David, director of the Business & Economics Reporting Program at the CUNY Graduate School of Journalism, reviews this week's news — from the economic impact of the Tony's, to Mayor Bloomberg's budget proposal, to the latest national job numbers.