Content about Macroeconomics

Employers should not assume that their employment practices liability (EPL) insurance excludes any cost related to a wage and hour claim, according to Barry Buchman, an attorney with Gilbert LLP in Washington, D.C.

It is very common these days for an EPL policy to have an exclusion for claims arising under the Fair Labor Standards Act (FLSA), he acknowledged. This has been partly in reaction to the rise in FLSA litigation over the past 10 years.

Orlando, Fla. -- Federal Reserve Chairman Ben Bernanke, addressing a crowd of home builders on the last day of the International Builders' Show here, did his best to explain how low mortgage rates -- his chief weapon to stimulate the housing market -- have fallen short of their goals. But Bernanke’s speech before a crowd of more than 200 attendees was not an apologie; on the contrary, Bernanke seemed a little frustrated about a lack of action in other government and business sectors and seemed worried about the overall effect of the housing crisis on the general economy.

Transcripts unsealed from a May 2006 meeting of the Federal Reserve indicate some concern about the housing bubble and the use of “exotic” mortgages by home buyers, according to a Jan. 13 article in the Wall Street Journal. But Fed Chairman Ben Bernanke described the slowdown of the housing market “a healthy thing” and an “orderly decline” that posed little threat to the U.S. economy.

The Federal Reserve, in a Jan. 4 report sent to members of Congress who sit on banking committees, warned that mortgage lending standards are holding back the nation’s economy.  

The 26-page white paper was an unusual foray into the housing sector for an agency concerned primarily with monetary policy. But Federal Reserve Chairman Ben Bernanke stated: “Restoring the health of the housing market is a necessary part of a broader strategy for economic recovery.”  

The U.S. Department of Labor reported that nonfarm payroll employment edged up by 103,000 jobs in September, but the unemployment rate stayed at 9.1%.

Construction was one of the areas cited for job gains, according to the employment situation summary, released Friday morning. Other areas were professional and business services and health care. 

The unemployment rate in April edged up to 9.0%, compared with 8.8% in March 2011.

Construction employment was about unchanged in April, according to Friday's report from the Bureau of Labor Statistics. This industry has shown little net movement since early 2010, after having fallen sharply during the prior three years.

Overall, the economy added 244,000 jobs in April, a higher gain than anticipated by analysts.

Figures released by the U.S. Commerce Department on Jan. 31 showed a 7% increase in consumer spending in December 2010, compared with the previous month. This continues an upward trend: Personal expenditures also rose in November 2010 by 4%.

Personal income increased 4% for the second straight month in a row, according to the Bureau of Economic Analysis.