clear
Thursday May 7th, 2015 1:42AM

US employers advertised more open jobs in Feb.; IMF says world economy stronger but...

By The Associated Press
WASHINGTON (AP) -- U.S. employers posted more job openings in February, a sign that hiring will likely improve in the months ahead. Meanwhile, the International Monetary Fund says the global economy is getting stronger but faces threats from a couple of sources.

The Labor Department said Tuesday that employers advertised 4.2 million job openings, up 7.7 percent from January. That's the highest number of postings since January 2008, when the Great Recession was just beginning and the economy had yet to suffer the full shock of the downturn.

Total hiring edged up 1.5 percent to 4.6 million in February. That's still less than a healthy job market, where around 5 million people are hired each month.

Hiring has accelerated over the past two months after a winter slowdown. After factoring in job losses, employers added 192,000 jobs in March and 197,000 in February, the government said last Friday.

IMF: WORLD ECONOMY STRONGER BUT FACES THREATS

The global economy is strengthening but faces threats from super-low inflation and outflows of capital from emerging economies, the International Monetary Fund warned Tuesday.

The lending organization expects the global economy to grow 3.6 percent this year and 3.9 percent in 2015, up from 3 percent last year. Those figures are just one-tenth of a percentage point below the IMF's previous forecasts in January.

The acceleration is being driven mostly by strong growth in advanced economies, including the United States and the United Kingdom, and a modest recovery in the 18 nations that use the euro currency.

By contrast, developing nations, particularly Russia, Brazil and South Africa, are now expected to grow much more slowly than the IMF forecast three months ago. Russia's economy will likely suffer as a result of its fight with the U.S. and Europe over the Ukraine. Others face high interest rates, which are intended to fight inflation but could slow growth.

The IMF, in its World Economic Outlook report, sharply upgraded its growth forecasts for the U.K., Germany and Spain. It expects the eurozone to grow 1.2 percent in 2014 and 1.5 percent in 2015 after shrinking 0.5 percent last year. Both estimates are one-tenth of a percentage point higher than the IMF's January forecasts.

The IMF made no changes to its forecasts for U.S. growth, which it estimates at 2.8 percent this year and 3 percent in 2015.

"The recovery ... is becoming not only stronger but broader," Olivier Blanchard, the IMF's chief economist, said at a news conference Tuesday.

The U.S. and European economies are benefiting from smaller government spending cuts and tax increases, Blanchard said. Banks are improving their finances. And investors are increasingly willing to buy European government debt.

Japan, however, is forecast to expand just 1.4 percent next year, down from the IMF's previous projection of 1.7 percent, and just 1 percent in 2015. Higher sales taxes are expected to weigh on growth.

Growth in China, the world's second-largest economy, is expected to continue its slowdown from its double-digit pace of a few years ago. That will have repercussions for many nations that export raw materials and parts to Chinese factories. China is projected to expand 7.5 percent in 2014 and 7.3 percent in 2015, down from 7.7 percent last year.

The 188-nation IMF and its sister organization, the World Bank, will hold their spring meetings in Washington this weekend. Finance ministers and central bank governors from the Group of 20 leading economies will meet Thursday.

The issues highlighted in the IMF's outlook, such as alarmingly low inflation, will likely be high on the agenda. Yet the meetings will be relatively free of the crisis atmosphere that beset the IMF for several years after the global financial meltdown and European debt crisis.

"Relative to previous years, the global economy is more stable," said Jacob Kierkegaard, a senior fellow at the Peterson Institute for International Economics. "This is going to be an annual meeting that will be more about process and medium- to long-run goals" than about short-term actions.

Nevertheless, analysts expect European officials, particularly the European Central Bank, to come under pressure to fight low inflation. Last week, Christine Lagarde, the IMF's managing director, urged the ECB to take "unconventional measures" to push prices up.

Such steps could include the purchase of bonds or other financial assets. The U.S. Federal Reserve and the Bank of Japan have both made such purchases to try to stimulate their economies.

Largarde's comment drew a rebuke last week from ECB President Mario Draghi. He noted tartly that the IMF "has been ... extremely generous in its suggestions on what we should or should not do" and added that the ECB disagreed.

Even so, the IMF "will reiterate the message that the ECB should be more aggressive," said Domenico Lombardi, director of the global economy program at CIGI, a Toronto-based think tank. "The ECB is behind the curve."

Inflation in the 18 countries that use the euro currency fell to an annual rate of 0.5 percent last month. Though consumers can enjoy flat prices, ultra-low inflation can stifle growth. People and companies postpone purchases knowing that prices will be little changed months later. Debts become harder to pay off. That's a particularly severe problem in Europe, where many governments remain squeezed by debts.

Super-low inflation also raises the risk of deflation - a decline in wages and prices that can cause a recession.

At the meetings, developing countries will likely push for greater coordination of central bank policies. Many say they've been harmed by the Federal Reserve's pullback of its stimulus this year. The Fed has been paring its monthly bond purchases, which were intended to keep U.S. interest rates low and spur more borrowing and spending.

But the prospect of higher U.S. rates has led investors to pull money from developing countries and reinvest it in the United States for higher returns. That exodus has caused currencies in Turkey, South Africa and other countries to plunge in value.

Eswar Prasad, a former IMF official and fellow at the Brookings Institution, said many Asian nations will likely raise a similar concern. They are wary of efforts by central banks in Japan and China to depress their currencies, which can make their exports cheaper and give them a trade advantage. Better coordination among central banks could address some of these concerns.

The United States could face criticism because Congress has refused to approve changes to the IMF that would give developing countries more influence. The Obama administration has sought the changes, which were dropped from legislation that gave $1 billion in loan guarantees to Ukraine. The provisions would have given Russia slightly more influence at the IMF just as lawmakers sought to punish President Vladimir Putin.
© Copyright 2015 AccessNorthGa.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 4 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 4 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 4 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 4 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 4 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 4 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 4 months ago )
Local/State News
Georgia sheriff charged in shooting of real estate agent
LAWRENCEVILLE, Ga. (AP) — An Atlanta-area sheriff was charged with a misdemeanor Wednesday in the shooting of a real estate agent at a model home.Clayton County Sheriff Victor Hill is charged with rec...
11:20PM ( 2 hours ago )
Deal signs watered-down craft breweries bill
Gov. Nathan Deal has signed a watered-down bill allowing craft breweries to let customers take home as much as 72 ounces of beer, or the equivalent of a six-pack, but only as a "souvenir.''
6:09PM ( 7 hours ago )
Brush fires along I-85 in Gwinnett Co. cause problems for motorists
The brush fires that were burning along an estimated six-mile stretch of I-85 southbound have now been extinguished and the road is reopened.
By Staff
4:00PM ( 9 hours ago )
Ride-hailing regulation bill gets Gov.'s signature
Ride-hailing services such as Uber and Lyft, which connect riders with drivers by means of a smartphone app, will soon have to comply with some Georgia regulations under legislation signed Wednesday by Gov. Nathan Deal.
By Associated Press
2:37PM ( 11 hours ago )
Fire destroys Jackson Co. home
A Jackson County family lost everything in a house fire Tuesday afternoon, according to EMS Director Steve Nichols.
11:59AM ( 13 hours ago )