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To: Kelvin Taylor who wrote (50939)	2/6/2004 12:43:23 PM
From: Kelvin Taylor	Read Replies (1) \| Respond to of 53068

>b>WASHINGTON Feb. 6 — The nation's unemployment rate dropped to 5.6 percent in January to the lowest level in more than two years as companies added just 112,000 new jobs fewer than expected but enough to keep alive hope for a turnaround in the struggling job market. The jobless rate fell last month to the lowest level since October 2001, when it was 5.4 percent, the Labor Department said Friday. January's rate matched the 5.6 percent posted in January 2002. Employers added new jobs last month at a pace not seen in three years. The last time payrolls expanded more than 112,000 was in December 2000, when companies added 124,000 positions. "It is not disastrous news, but it is definitely disappointing," said Bill Cheney, chief economist at John Hancock Financial Services. I find it interesting this jobs report(which is due to error) is "disappointing". The expected increase was 150K. Who is to say that was a realistic number? This is more like a company reporting good earnings...the best in 4 years yet they didn't beat the Street therefore a "disappointing" report. In December's first monthly report only 1000 new jobs were created. Then later the revised number was 16,000...so the numbers can be way off at times. What if the number had come in at 150K or more? ..."the Fed keep interest rates low. A revival in the jobs market is seen as crucial for a sustained economic recovery and the central bank is expected to keep rates on hold until signs of this emerge. "These numbers will not change the Fed's thinking," said Rick Egelton, deputy chief economist at BMO Financial Group. "The Fed is on hold for the time being." Seems with the numbers coming in at these levels the Fed will likely keep rates low. No reason to adjust rates with job growth not causing higher inflation. I'm sure those seeking the White House will find something negative in the report.