WREN Report: Employment Falls, U.S. Dollar Strengthens

November 9, 2008  by in UnCategorized   

By Home Furnishings Business in on November 2008 • The overall October unemployment rate increased 0.4 percentage points, to 6.5 percent, according to the U.S. Bureau of Labor Statistics (BLS). Non-farm employment fell by 240,000 in October.

Over the past 12 months, the number of unemployed persons increased by 2.8 million, and the unemployment rate rose 1.7 percentage points.

Overall manufacturing employment slid by 90,000, or 0.7 percent, in October, with manufacturing employment in the home furnishings sector down 10,400, or 2.2 percent compared with September figures. Versus October 2007 figures, total manufacturing employment declined by 517,000 jobs or 3.7 percent, and home furnishings manufacturing lost 56,900 jobs or 10.8 percent.

On the retail side of the home furnishings industry, employment declined 0.6 percent, or 3,200 jobs, in October compared with September, to 560,300 jobs. That’s a decline of 2.9 percent from October of last year, based on BLS records. October’s overall retail trade employment declined 0.3 percent versus September and fell 1.8 percent compared with October 2007 figures.

• In October, the U.S. dollar continued to gain ground against many of the country’s major trading partners. Measured against September rates, the U.S. greenback strengthened against Canada’s dollar (+11.9 percent), the People’s Republic of China’s yuan (+0.1 percent), the European Union’s euro (+8.1 percent), Malaysia’s ringgit (+2.4 percent), Singapore’s dollar (+3.4 percent), Taiwan’s dollar (+2.2 percent), Thailand’s baht (+0.5 percent) and the United Kingdom’s pound (+6.6 percent). Only the Japanese yen pulled ahead of the U.S. dollar, with month-over-month rates showing the dollar down 6.2 percent.

According to the U.S. Federal Reserve, which monitors foreign exchange rates, the U.S. dollar also showed marked improvement compared with October 2007 rates. The dollar gained against all of the above currencies, with the exception of the Japanese yen and P.R. China’s yuan.

A stronger dollar benefits U.S. retailers and vendors importing goods, but makes it tougher on exporting companies, as their goods become more expensive for overseas buyers to purchase.

Weekly Review of Economic News (WREN) reports are summaries of recently-released economic statistical data that affect the home furnishings industry. WREN reports are compiled by HFB Research Editor Janice Chamberlain.