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US EMPLOYERS ADD 165K JOBS; RATE FALLS TO 7.5 PCT.
Friday, 03 May 2013 09:20 Published in National NewsThe report Friday from the Labor Department was a reassuring sign that the U.S. job market is improving despite higher taxes and government spending cuts that took effect this year.
The government revised up its estimate of job gains in February and March by a combined 114,000. It now says employers added 332,000 jobs in February and 138,000 in March. The economy has created an average of 208,000 jobs a month from November through April — above the 138,000 added in the previous six months.
"This is a good report," said John Silvia, chief economist at Wells Fargo. "There's a lot of strength... It's good for the economy. It's good for people's income."
The stronger job growth suggests that the federal budget cutting "does not mean recession," Silvia said. "It does not mean a dramatic slowdown."
Stock prices soared when trading began on Wall Street at 9:30 a.m. Eastern time. The Dow was up 155 points in early trading.
The unemployment rate has fallen 0.4 percentage point since the start of the year, though it remains high. The Federal Reserve has said it plans to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent.
The hiring last month was broad-based. The only sectors of the economy that cut jobs were construction and government.
Some higher-paying sectors added workers. Professional and technical services, which includes accounting, engineering and architecture, added 23,000 jobs. Education and health services added 44,000.
But some of the bigger job gains were in lower-paying fields, such as hotels and restaurants, which added 45,000 jobs, and retail, which added 29,000. Temporary help firms gained 31,000 positions.
The job growth is occurring while the U.S. economy is growing modestly but steadily. It expanded at a 2.5 percent annual rate in the January-March quarter, fueled by the strongest consumer spending in two years.
The global economy, by contrast, is slowing. The European Union warned Friday, for example, that the 17 countries that use the euro currency will shrink by a collective 0.4 percent this year. And unemployment across the eurozone is expected to hit an average of 12.2 percent. In Greece and Spain, it's forecast to reach 27 percent.
Both Fed Chairman Ben Bernanke and European Central Bank President Mario Draghi have suggested that governments need to focus on stimulating growth and not just on spending cuts and deficit reduction.
In April, more Americans said they had part-time jobs even though they wanted full-time work. That figure rose 278,000 to 7.9 million, reversing a steep drop the previous month.
Some economists worry that restaurants, retail chains and other companies are hiring more part-time workers in preparation for the implementation of health care reform. Companies with more than 50 full-time employees in 2013 will be required to provide health insurance to their full-time staff next year.
The revisions to the March and February figures were unusually large. Retailers, restaurants and hotels added 48,000 more jobs in February than previously reported. They accounted for three-quarters of that month's revision.
The government revises each month's job totals twice in the following two months. The revisions occur because many companies in the survey submit their responses late.
The average workweek for private-sector employees declined 0.2 hour to 34.4 hours, but average hourly earnings rose 4 cents to $23.87. In the past year, wages have risen faster than inflation.
The number of people who have been unemployed for more than six months dropped 258,000 to 4.4 million. Over the past year, the number of long-term unemployed has declined by 687,000.
A fire overnight at the Labor Department's headquarters shut down the building for most employees. Members of the news media were allowed in for the release of the jobs report.
BANGLADESH OFFICIAL: DISASTER NOT 'REALLY SERIOUS
Friday, 03 May 2013 09:17 Published in National NewsFinance Minister Abul Maal Abdul Muhith spoke as the government cracked down on those it blamed for the disaster in the Dhaka suburb of Savar. It suspended Savar's mayor and arrested an engineer who had called for the building's evacuation last week, but was also accused of helping the owner add three illegal floors to the eight-story structure. The building owner was arrested earlier.
The government appears to be attempting to fend off accusations that it is in part to blame for the tragedy because of weak oversight of the building's construction.
During a visit to the Indian capital New Delhi, Muhith said the disaster would not harm Bangladesh's garment industry, which is by far the country's biggest source of export income.
"The present difficulties ... well, I don't think it is really serious — it's an accident," he said. "And the steps that we have taken in order to make sure that it doesn't happen, they are quite elaborate and I believe that it will be appreciated by all."
When asked if he was worried that foreign retailers might pull orders from his country, Muhith said he wasn't: "These are individual cases of ... accidents. It happens everywhere."
The April 24 collapse is likely the deadliest garment-factory accident in world history. It surpassed both long-ago disasters such as New York's Triangle Shirtwaist factory fire, which killed 146 workers in 1911, and more recent tragedies such as a 2012 fire that killed about 260 people in Pakistan and one in Bangladesh that same year that killed 112.
At the site of the collapse, the official death toll reached 501 Friday and was expected to climb. Workers carefully used cranes to remove the concrete rubble and continue the slow task of recovering bodies. The official number of missing has been 149 since Wednesday, though unofficial estimates are higher.
"We are still proceeding cautiously so that we get the bodies intact," said Maj. Gen. Chowdhury Hassan Suhwardy, the commander of the area's army garrison supervising the rescue operation.
A government investigator said Friday that substandard building materials, combined with the vibration of heavy machines used by the five garment factories inside the Rana Plaza building, led to the horrific collapse.
Mainuddin Khandkar, the head of a government committee investigating the disaster, said substandard rods, cement, bricks and other weak materials were used in the construction of the Rana Plaza building, which was not properly fortified to house the garment factories' equipment.
About 15 minutes before the collapse, the building was hit by a power blackout, so its heavy generators were turned on, shaking the weakened structure, Khandkar said.
"The vibration created by machines and generators operating in the five garment factories contributed first to the cracks and then the collapse," he said, adding that a final report would be soon submitted to the government.
Police official Ohiduzzaman said Friday that engineer Abdur Razzak Khan was arrested a day earlier on a charge of negligence. He said Khan worked as a consultant to Rana Plaza owner Mohammed Sohel Rana when the illegal three-floor addition was made to the building.
Rana called Khan to inspect the building after it developed cracks on April 23, local media reported. That night Khan appeared on a private television station saying that after his inspection he told Rana to evacuate the building because it was not safe.
Khan, a former engineer at Jahangirnagar University near Savar, said he told government engineers the building needed to be examined further.
Police ordered the building evacuated, but witnesses say Rana told people gathered outside the next morning that the building was safe and that garment factory managers told their workers to go inside. It collapsed hours later.
Authorities also suspended the mayor of Savar, Mohammad Refatullah, for alleged negligence, said Abu Alam, a top official of the local government ministry.
Alam said an official investigation has found that the mayor ignored rules in approving the design and layout of the doomed building. The mayor is from the opposition Bangladesh Nationalist Party, which has criticized his suspension as politically motivated.
The government also effectively suspended Kabir Hossain Sardar, the top government administrator at Savar, following reports that he declared the building safe after inspecting the cracks a day before the collapse. Sardar had close links with Rana. Alam said the government was taking action against everyone involved with Rana and his building.
Rana himself was arrested earlier and is expected to be charged with negligence, illegal construction and forcing workers to join work, crimes punishable by a maximum of seven years in jail. Authorities have not said if more serious crimes will be added.
The Bangladesh High Court has ordered the government to confiscate Rana's property and freeze the assets of the owners of the factories in Rana Plaza so the money can be used to pay the salaries of their workers.
Among the garment makers in the building were Phantom Apparels, Phantom Tac, Ether Tex, New Wave Style and New Wave Bottoms.
___ AP Videojournalist Archana Thiyagarajan in New Delhi contributed to this report.
US SUICIDE RATE ROSE SHARPLY AMONG MIDDLE-AGED
Friday, 03 May 2013 09:14 Published in Health & FitnessThe trend was most pronounced among white men and women in that age group. Their suicide rate jumped 40 percent between 1999 and 2010.
But the rates in younger and older people held steady. And there was little change among middle-aged blacks, Hispanics and most other racial and ethnic groups, the report from the Centers for Disease Control and Prevention found.
Why did so many middle-aged whites - that is, those who are 35 to 64 years old - take their own lives?
One theory suggests the recession caused more emotional trauma in whites, who tend not to have the same kind of church support and extended families that blacks and Hispanics do.
The economy was in recession from the end of 2007 until mid-2009. Even well afterward, polls showed most Americans remained worried about weak hiring, a depressed housing market and other problems.
Pat Smith, violence-prevention program coordinator for the Michigan Department of Community Health, said the recession - which hit manufacturing-heavy states particularly hard - may have pushed already-troubled people over the brink. Being unable to find a job or settling for one with lower pay or prestige could add "that final weight to a whole chain of events," she said.
Another theory notes that white baby boomers have always had higher rates of depression and suicide, and that has held true as they've hit middle age. During the 11-year period studied, suicide went from the eighth leading cause of death among middle-aged Americans to the fourth, behind cancer, heart disease and accidents.
"Some of us think we're facing an upsurge as this generation moves into later life," said Dr. Eric Caine, a suicide researcher at the University of Rochester.
One more possible contributor is the growing sale and abuse of prescription painkillers over the past decade. Some people commit suicide by overdose. In other cases, abuse of the drugs helps put people in a frame of mind to attempt suicide by other means, said Thomas Simon, one of the authors of the CDC report, which was based on death certificates.
People ages 35 to 64 account for about 57 percent of suicides in the U.S.
The report contained surprising information about how middle-aged people kill themselves: During the period studied, hangings overtook drug overdoses in that age group, becoming the No. 2 manner of suicide. But guns remained far in the lead and were the instrument of death in nearly half of all suicides among the middle-aged in 2010.
The CDC does not collect gun ownership statistics and did not look at the relationship between suicide rates and the prevalence of firearms.
For the entire U.S. population, there were 38,350 suicides in 2010, making it the nation's 10th leading cause of death, the CDC said. The overall national suicide rate climbed from 12 suicides per 100,000 people in 1999 to 14 per 100,000 in 2010. That was a 15 percent increase.
For the middle-aged, the rate jumped from about 14 per 100,000 to nearly 18 - a 28 percent increase. Among whites in that age group, it spiked from about 16 to 22.
Suicide prevention efforts have tended to concentrate on teenagers and the elderly, but research over the past several years has begun to focus on the middle-aged. The new CDC report is being called the first to show how the trend is playing out nationally and to look in depth at the racial and geographic breakdown.
Thirty-nine out of 50 states registered a statistically significant increase in suicide rates among the middle-aged. The West and the South had the highest rates. It's not clear why, but one factor may be cultural differences in willingness to seek help during tough times, Simon said.
Also, it may be more difficult to find counseling and mental health services in certain places, he added.
Suicides among middle-aged Native Americans and Alaska Natives climbed 65 percent, to 18.5 per 100,000. However, the overall numbers remain very small - 171 such deaths in 2010. And changes in small numbers can look unusually dramatic.
The CDC did not break out suicides of current and former military service members, a tragedy that has been getting increased attention. But a recent Department of Veterans Affairs report concluded that suicides among veterans have been relatively stable in the past decade and that veterans have been a shrinking percentage of suicides nationally.
--- Associated Press writer Jeff Karoub in Detroit contributed to this report.
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