MO Payroll Jobs Fall as does State Unemployment Rate

From today’s SBJ:

Missouri's unemployment rate fell slightly in January and remains below the national average, according to numbers released Wednesday by the Missouri Department of Economic Development.
The state seasonally adjusted unemployment rate dropped to 9.5 percent, down from 9.6 percent in December 2009. The national unemployment rate in January, seasonally adjusted, was 9.7 percent.
The state's overall nonfarm payroll fell by 12,800 jobs. The decrease in employment was blamed mostly on the unusually harsh winter weather, which contributed to drops in employment in construction and related industries.

Construction employment was down 7,700 jobs, while administrative and support services lost 3,400 jobs, 3,100 jobs were lost in leisure and hospitality, and 2,400 jobs were lost in other services. The decreases were offset by an 1,100 job gain in manufacturing, 1,600 jobs gained in retail trades, management gains of 1,000 jobs, and 1,900 jobs added in government.

The Kansas City metropolitan area lost 4,600 jobs in January, but the state's other metropolitan areas, including Springfield, were relatively unchanged from the month before.

Sully to Retire

My hero Capt. Chesley “Sully” Sullenberger will make his final flight today as a pilot for US Airways.  His 30-year career will end today at Charlotte’s Douglas International Airport.

Sullenberger was the captain of US Airways flight 1549 that landed in the Hudson in January 2009.

So long Sully!

Productivity Increases in Q4 2009

From the Bureau of Labor Statistics (emphasis is mine):

Nonfarm business sector labor productivity increased at a 6.9 percent annual rate during the fourth quarter of 2009, the U.S. Bureau of Labor Statistics reported today. The gain in productivity reflects a 7.6 percent increase in output partially offset by a 0.6 percent increase in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the fourth quarter of 2008 to the fourth quarter of 2009, productivity increased 5.8 percent as output declined 0.2 percent and hours fell 5.7 percent (table A). The annual measure of productivity increased 3.8 percent from 2008 to 2009 (table D).

Jobless Claims Drop Last Week

From the US Dept of Labor:

In the week ending Feb. 27, the advance figure for seasonally adjusted initial claims was 469,000, a decrease of 29,000 from the previous week's revised figure of 498,000. The 4-week moving average was 470,750, a decrease of 3,500 from the previous week's revised average of 474,250.

The advance seasonally adjusted insured unemployment rate was 3.5 percent for the week ending Feb. 20, a decrease of 0.1 percentage point from the prior week's revised rate of 3.6 percent.

The advance number for seasonally adjusted insured unemployment during the week ending Feb. 20 was 4,500,000, a decrease of 134,000 from the preceding week's revised level of 4,634,000. The 4-week moving average was 4,575,750, a decrease of 29,250 from the preceding week's revised average of 4,605,000.

The fiscal year-to-date average of seasonally adjusted weekly insured unemployment, which corresponds to the appropriated AWIU trigger, was 5.186 million.  

State with largest unemployment drop: California – 12,000

State with largest unemployment rise: New Jersey – 4,879

Pending Home Sales Fall in January

From today’s Washington Post:

The number of buyers who agreed to purchase previously occupied homes fell sharply in January, a sign that demand for housing is sinking this winter, especially after stormy weather hit much of the country.

The National Association of Realtors says its seasonally adjusted index of sales agreements fell 7.6 percent from December to a January reading of 90.4. It was the lowest reading since last April.

Economists surveyed by Thomson Reuters had expected the index would rise to 97.6. The index is considered a barometer for future sales because typically there is a one- to two- month lag between a signed sales contract and a completed deal. A reading of 100 is equal to the average level of sales activity in 2001, when the index started.

January Shipments, Inventories and Orders Look Better

This from the US Dept of Commerce:

The from New orders for manufactured goods in January increased 1.7 percent to $378.4 billion.  Shipments rose 0.3 percent , unfilled orders increased by $0.1 billion following fifteen consecutive monthly increases and inventories increased 0.2 percent from December 2009.

This report and free email notifications (and more!) can be found at:

http://www.economicindicators.gov/

Crowder tops Missouri community college student growth

From today’s JTBJ:

All of Missouri's 12 community college systems saw enrollment increases for the spring semester, according to information released Wednesday by the Missouri Community College Association, and Crowder College in Neosho saw the largest percentage increase.

Crowder has 4,049 students for spring 2010, up 22.3 percent from spring 2009, while Ozarks Technical Community College has enrollment of 12,383 students, up 16.6 percent from a year earlier.

Statewide, community college enrollment is up 13.1 percent year-to-year, with more than 100,000 students enrolled in MCCA member schools. The growth rate is more than double the growth from spring 2008 to spring 2009, when enrollment numbers grew by 5.9 percent.

"As difficult economic times have continued, community colleges have continued to attract more and more students," MCCA President Jim Kellerman said in the release. "The short-term work force training, associate degrees and certificates offered at community colleges provide realistic solutions. Community colleges give people options."

Moberly Area Community College posted the second-highest enrollment growth at 22.2 percent, followed by State Fair Community College at 19.3 percent.

State general revenue total drops again in February

From today’s SBJ (emphasis is mine):

The state's general revenue situation continued to deteriorate in February, according to numbers released Tuesday.

Net general revenue collections for February totaled $335.6 million, a drop of 14.6 percent from February 2009. For the fiscal year, which started July 1, revenue collections are down 12.7 percent to $4.22 billion.

The continued decline has led to plans to revise the state's consensus revenue estimate for next fiscal year, according to a separate statement released Monday by Gov. Jay Nixon's office.

"After reviewing the preliminary February revenue figures, it is clear that even as Missouri's economy begins to rebound, state revenues will continue to lag for a prolonged period of time," Nixon said in the statement. "As a result, we will need to downsize the scope of state government."

Leaders in the General Assembly plan to meet this week to discuss next year's estimate.

For February, individual income tax collections were down 8.7 percent, while sales and use tax collections decreased 5 percent. corporate income and franchise tax collections were down 7.1 percent, and other collections dropped 15.2 percent for the month. 

The February totals come on the heels of a plan to cut $74 million in spending from this year's budget following a 22.4 percent decline in January collections.

Maybe Not Rain or Sleet, But Budget Woes Will!

The US Postal service has today issued a 10-year plan to addressing declining revenues (and continued losses) and volume.  The major proposals are:

• Restructure retiree benefits to match other federal departments
• Adjust delivery days (i.e. get rid of Saturday delivery)
• Expand and modernize customer access by providing more convenient locations
• Establish a more flexible workforce (300,000 current employees will be eligible to retire in the next 10 years)
• Remove inflation cap on “Market Dominant” mailing products
• Raises prices in 2011
• Allow the Postal Service to evaluate and introduce more new products.

As reported in the press release,

“If the Postal Service takes no action, it will face a cumulative shortfall of $238 billion by 2020. But (Postmaster General John) Potter outlined a number of actions that could amount to as much as $123 billion in savings during that same time period. These actions build on the Postal Service’s record of saving more than $1 billion every year since 2001 and include continuing to aggressively control costs and eliminating hundreds of millions of work hours.”

The press release is here.

Credit Managers Index shows small growth in February

From today’s SBJ:

The Credit Managers Index grew slightly in February due to growth in manufacturing and increasing optimism, which counteracted declines in other areas.

The index increased to 55.2 from 55.1 in January, which the National Association of Credit Management said is a result of an overall improvement in optimism about the state of the economy.
The shift in sentiment, according to an NACM news release, started at the end of 2009 as businesses started paying down debt in anticipation of needing access to credit in the near future. Expansion usually begins within a month or two of debt-paying activity, the release said.

"The development in manufacturing was matched to a lesser extent by similar movement in the service sector, and other economic indicators added to the notion that something was stirring in the economy,” said Chris Kuehl, NACM economist, in the release. "The first phase in an economic recovery is the replenishment of reduced inventory and there can’t be growth without the supply to meet expected demand.”

The economy, however, will not recover until consumer confidence builds, according to the release. Sales were flat in February after a significant jump in January, and bankruptcies continue to increase as companies and individuals with high debt levels maneuver for more time.

Manufacturing was bolstered by growth in inventories and an increase in sales and credit applications.
"Unfortunately, dollar collections were down, likely reflecting the fact that many manufacturers are now stretching to get in position for the expected recovery and that has affected their ability to pay,” Kuehl said in the release.

Joplin Airport Wants Consultant to Save Passenger Travel

From today’s Joplin Globe:

A renewed effort will be made this year to bring to Joplin an airline service that could rescue the airport’s plummeting passenger count.
The Joplin City Council will be asked at its regular meeting tonight to approve a new agreement with an airport consultant to lobby for the Joplin Regional Airport and help it negotiate its next Essential Air Service agreement.

The U.S. Department of Transportation’s agreement with Great Lakes Aviation to provide passenger plane service at the Joplin airport will expire in October. The procedure of attracting potential bidders will begin because the DOT will issue bid packets in June or July, according to city documents.

Airport manager Steve Stockam said the passenger count has dropped from 35,000 a year when the airport was served by the former Mesa Air Group to 10,000 last year. Mesa liquidated, and the Essential Air Service designation was awarded to Great Lakes in 2008. EAS is a government program to ensure air service to communities that had it when airlines were deregulated.

Stockam said an air service study received last month showed that the reason for the declining use is that people looking for a flight into Joplin don’t know the Great Lakes name or cannot find where to book a flight because Great Lakes is not affiliated with a major carrier.  “It really is not the community’s fault that the air service is what it is,” Stockam said. “We definitely need to support it, but currently the market is being underserved because we need a branded service.”

People wanting flights “recognize American Airlines, United or Delta, but they don’t recognize Great Lakes. Our numbers prove it,” he said of the passenger count.  Joplin does not suffer from the price of airfares or because there isn’t enough business here, as critics contend, Stockam said.

“Both of those are pretty much misnomers from the standpoint that yes, fares are high for certain locations and for the time in which you go,” he said. “But we have a huge market area. ... Two-thirds of our traffic comes in from outside to do business. For every ticket generated locally to fly out, there are two tickets sold to fly in (to Joplin).”  But travelers, mostly for business, find it difficult to book a flight in from the East or West coasts because Joplin does not have a name-brand airline, Stockam said.

He does acknowledge that Great Lakes is a stable airline that is not in financial difficulty, but it operates through Denver.  Joplin needs a carrier that connects to Dallas, Chicago or Memphis, Stockam said, in order to have full service nationally or internationally.  That’s where the new agreement comes in.

Stockam said the performance-based contract awaiting council action would give the consultant an added incentive if it can hook Joplin up with more business.  It would pay the consultant $1 for every extra passenger above the current number, on top of the set hourly fees paid for consulting work done on behalf of Joplin with the airlines and the DOT.  If no increase results, the airport will not owe the extra pay, Stockam said.

Representatives of six consulting firms were interviewed by Stockam. He proposes contracting with Sixel Consulting Group, which is based in Oregon but has consultants in several large U.S. cities, because it proposed to do the work for a lesser fee with the potential of earning the bonus. The airport’s consultant has been the Boyd Group, which did the air service study.

Personal Spending Increases/Income Growth Slows

From today’s Washington Post:

Personal spending jumped by a larger amount than expected in January but Americans' incomes barely budged. The weak income growth could depress spending in the months ahead, acting as a further drag on the fragile economic recovery.

The Commerce Department said that personal spending rose by 0.5 percent in January, slightly better than expected. But incomes edged up only 0.1 percent, significantly lower than the 0.4 percent gain that economists had expected.

Construction Spending Down in Jan 2010

Construction spending was $884.1 billion in January 2010, 0.6% below December 2009 and 9.3% below January 2009. Construction spending is 27.1% below its March 2006 peak.

School Cuts Hurt Everyone

Lack of funding at the State level has resulted in funding cuts for all of Missouri’s public schools.  It stems from a decision by Gov. Nixon to not fund a $43 million mid-year funding boost called for under the school funding formula.

Locally, schools are having to regroup and reprioritize as they learn the impact – equal to 2% of their state funding.  Neosho will stand to lose $300K-$400K as a result of the decision.  Unlike planned cuts that are dealt with in future budgets, these cuts are part of THIS year’s budget.  Dr. Richard Page, Supt. of Neosho R-5 told the Neosho Daily News:

“There is not a lot that you can do with some of the big expenditures that you have in the operations in the middle of the year, but we are going to have to look at some of the projects that we normally try to get done in the summer and probably cut back on some things and maybe some of the services through some of the other residual programs, not affecting the classrooms, but some of the other programs, that are just areas of support or areas on the fringe. I can’t really specify what those programs are.”

The good news is that Neosho’s school finances are stronger than many other districts around the state.  That will help.

Wal-Mart To Eliminate Greenhouse Gases

From HFN:

BENTONVILLE, Ark.–Walmart plans to eliminate 20 million metric tons of greenhouse gas emissions from its global supply chain by 2015.



That's the equivalent of taking more than 3.8 million cars off the road for a year, the company said, and it represents one and a half times the company's estimated global carbon footprint over the next five years.

"Energy efficiency and carbon reduction are central issues in the world today," said Mike Duke, president and chief executive officer. "We've been working to make a difference in these areas, both in our own footprint and our supply chain. We know that we have an opportunity to do more and the capacity to do more."

The program will have three main components: the selection of the product categories that have the highest embedded carbon; reducing greenhouse gases from any part of the products' life cycle, from the sourcing of raw materials to end-of-life disposal; and the accountability from both suppliers and Walmart for these reductions. Walmart works with more than 100,000 suppliers worldwide, Duke said.

Walmart collaborated with the Environmental Defense Fund and other external advisors to develop this approach.
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Existing Home Sales Fall in January

From the Washington Post:

Sales of previously occupied homes took a large drop for the second straight month in January, falling to the lowest level since summer. It was another sign the housing market's recovery is faltering.

The National Association of Realtors said sales fell 7.2 percent to a seasonally adjusted annual rate of 5.05 million from a downwardly revised pace of 5.44 million in December.

The results, the weakest since June, were far worse than forecast. Economists expected a slight increase to a rate of 5.5 million.
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Real GDP Rises in Q4

Real gross domestic product (GDP) rose at an annual rate of 5.9% in the fourth quarter of 2009, 0.2 percentage point more than in the advance estimate.  Real GDP increased 2.2% in the third quarter of 2009
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“C” Word Dropped Again in DC

Rep. Charlie Rangel D-New York, has dropped the “Common Sense” word in response to a report by the House ethics committee.  The committee has been investigating Rangel on a variety of issues.  The committee reported today that Rangel “knowingly” accepted and took trips to the Carribean in violation of House ethics rules.

Responding to the report during a hastely arranged press conference this evening, Rangel said "I don't want to be critical of the committee. But common sense dictates that members of Congress shouldn't be held responsible for what could be mistakes by staff unless there's reason to believe the member knew or should have known.”

That’s the second time today that the word “common sense” has been used by politicians in DC as they try to point blame.  Earlier today, President Obama used the term while describing issues with health care reform.

My view…common sense says if you didn’t personally pay for the trip Mr. Rangel, you better find out who did before you go.  Ignorance is no excuse.

MODot Stops Traffic…On Highway Bids

From KMIZ:

Right now $250 million worth of highway projects in the state are on hold and there is no start date in site.

The Missouri Department of Transportation said because federal money is uncertain right now, leaders are not moving forward with bids scheduled for tomorrow.

A spokesperson for MoDot says not accepting bids is NOT common and something they were hoping it wouldn’t come to.  There are about 60 projects that were up for bid Friday.  MoDot says these projects won’t be canceled just delayed, until Congress makes a decision.

Last year Congress passed a highway bill that has one fourth less funding than the previous highway program.  This week the US Senate was able to boost funding, but the House and Senate are still working on an exact amount.

If Congress fails to act soon MoDot says it will have to evaluate if it can afford to go forward with projects due for bid in March, April and even May.

We’re told if there are any highway projects that need immediate attention, MoDot will address those.

Fulton School Board Approves Cuts

FULTON, Mo. (AP) -- The Fulton School Board has approved $1.2 million in budget cuts that includes closing the district's alternative school and eliminating ninth-grade sports.

The board approved the cuts Wednesday night after hearing from several students, parents and patrons. The most contentious item was dropping the alternative program, which would save the district about $253,844 next year.

Supporters said the alternative school had helped many students graduate who would not have completed school in a regular setting. They said the district would see an increase in dropouts if the program closed.

But board members noted before the vote that administrators had estimated that keeping the alternative program open would cost the district at least five teachers.