Getting Back on Track after the Busy Hurricane Season
Job growth is back on track after Hurricanes Katrina, Rita, and Wilma. According to the Department of Labor, 215,000 jobs were created last month:
However, for some job seekers outside the affected areas, rebuilding after Katrina provided work:
Ultimately, an already strong economy, called by John Kerry during the 2004 Presidential election the "worst economy since Herbert Hoover," kept the hurricanes of 2005 from making little more than a dent in growth:
However, our strong economy is one reason Bush needs to start vetoing some spending bills. Deficit spending can be helpful when an economy needs a boost, such as after 9/11. However, a bit over four years after those attacks and in the midst of a booming economy, government deficit spending has become frivilous and unnecessary.
While the number of new jobs was about average for a month in the United States with the unemployment rate at 5 percent, it cheered political leaders and others worried about a long-lasting impact from the nation's worst storm.However, unemployment remains high among those displaced by Katrina:
President Bush, who was hurt by public doubts about the economy and a fall in consumer confidence after the hurricane, heralded the improvement yesterday.
"We have every reason to be optimistic about our economic future," Mr. Bush said. "This economy is in good shape."
Katrina put nearly 600,000 people out of work, primarily in the flooded New Orleans area. The unemployment rate for the 900,000 people evacuated from theimpact area remains high at 20.5 percent, the department said, but is 12.5 percent for those who returned to the city of New Orleans.
However, for some job seekers outside the affected areas, rebuilding after Katrina provided work:
Construction jobs jumped by 37,000 during November after rising 35,000 in October. Professional and technical services jobs increased by 22,000. Even manufacturing posted a second month of small job gains, thanks to a flood of orders for restocking and rebuilding from the Gulf region.
Ultimately, an already strong economy, called by John Kerry during the 2004 Presidential election the "worst economy since Herbert Hoover," kept the hurricanes of 2005 from making little more than a dent in growth:
"The overall economy's strong underpinnings have helped it weather the Gulf storms," said David Huether, chief economist at the National Association of Manufacturers. He expects the run of orders since the storms to keep industries busy well into next year.The most important part of this is the statement that an already strong economy kept the 2005 hurricane season from being as disastrous as it could've been. Luckily, all those who were making claims that we were going to fall into a recession or even a depression because of the disruption of oil production in the Gulf were wrong. Of course, those also were generally the same people who agreed with Kerry about the state of the Bush economy prior to Katrina and seemed to long for the sunny days of the Carter administration.
Average wages rose a solid 3.2 percent from last year -- the best growth in nearly three years. Increases in services jobs were widespread. Health care and education led with a hiring surge of 36,000.
Workers in leisure and hospitality businesses benefited from the drop in gas prices, which prompted consumers to spend more on eating out and other discretionary activities. Jobs at restaurants soared by 38,500.
The booming housing market accounted for a quarter of the job gains, generating jobs in construction, realty, architecture, mortgage banking and building supply, said Christian E. Weller, analyst at the Center for American Progress.
However, our strong economy is one reason Bush needs to start vetoing some spending bills. Deficit spending can be helpful when an economy needs a boost, such as after 9/11. However, a bit over four years after those attacks and in the midst of a booming economy, government deficit spending has become frivilous and unnecessary.
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