EMPLOYMENT UP SLIGHTLY IN FOOD-RELATED JOBS

ALISON MAXWELL

WASHINGTON [FNS] -- Employment at food stores increased by 7,000 in December, after dropping 3,000 workers in November, according to Labor Department statistics.

Food stores employed a seasonally adjusted 3.485 million in December, up from 3.478 million in November. Year-over-year, however, employment at food stores dropped by 2,000 workers.

Employment at eating and drinking places increased by 27,000 in December following an increase of 18,000 in November. Eating and drinking places employed 7.970 million in December, compared with 7.943 million in November. Against December 1998, employment at eating and drinking places increased by 10,000.

Employment in the retail industry, meanwhile, ended 1999 on a strong note. Over the year, retail employment increased by 427,000, or 1.9%, slightly above the 1.7% gain in 1998. General merchandise stores added 26,000 jobs during the year, while department stores added 13,000 employees. Apparel and accessories stores added 44,000 jobs during 1999.

For the month, employment at general merchandise stores increased by 34,000 and department store employment jumped by 22,000. Apparel and accessories stores dropped 8,000 jobs.

The national unemployment rate in December held at a 30-year-low of 4.1%, as 315,000 workers found jobs, the biggest gain since July. For all of 1999, the unemployment rate averaged 4.2%, the lowest since 3.5% in 1969 during the Vietnam War. In 1998, unemployment averaged 4.5%.

Average hourly earnings, a key gauge of inflation pressures, rose by 0.4% to $13.46 in December. In November, wages grew by 0.1%. Although increased earnings and job growth are positive for workers, economists fear the combination could spark inflationary pressures.

Last year, in an attempt to cool the red-hot economy, the Federal Reserve increased interest rates three times. Some economists said the Fed could boost rates again at its Feb. 1-2 meeting if the economy continues at its current pace.

"There have been a lot of concerns about coming interest rate hikes," said Stephan Thurman, deputy chief economist at the U.S. Chamber of Commerce. "And this report adds fuel to the fire."