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To: James Strauss who wrote (3262)	12/7/1998 10:27:00 AM
From: wily	Read Replies (1) \| Respond to of 13094

>>Someone has got to fill all those McDonald's positions Except the average hourly wage increased slightly (in case you weren't joking)

To: James Strauss who wrote (3262)	12/7/1998 1:48:00 PM
From: Will M	Read Replies (1) \| Respond to of 13094

I've been following your discussion about the recent monthly employment/unemployment, and wages/prices reports. I have not studied the recent reports in any detail, but it is important to remember that the jobs and unemployment data are influenced by several factors. Seasonality and the seasonal adjustment process used by the BLS will affect the reported numbers. If the mild fall/winter winter weather in most of the country has kept more construction, golf course, logging, and other workers on the job than would normally be expected (or anticipated in the seasonal adjustment routine) and has not displaced a disproportionate number of workers in Minnesota's ice fishing jobs, etc., then at least some of the reported jobs gain/unemployment drop was induced artificially. One month's data do not signify a trend. Overall, though, I agree in general with the statement that, with manufacturing job numbers down, the service sector of the economy is generating more new jobs than are thrown off in other industries. Note that the services industry is not just restaurants and retailers; it includes millions of business and financial service jobs (eg, consultants and stock brokers) plus medical specialists and teachers (in private schools and colleges, at least). In the short run, it is not necessarily true that wage increases reflect higher productivity. Wages can rise because of supply/demand imbalances during a time frame in which productivity may be stable. Over the longer run, wages cannot increase faster than productivity without inflationary effects.