The Jim Bakker Show

Short on staff: Nursing crisis strains U.S. hospitals

Registered nurse Kara Salonga, pictured at nursing station at the West Virginia University Hospitals in Morgantown, West Virginia, U.S., September 6, 2017. Picture taken September 6, 2017. REUTERS/Mike Wood

By Jilian Mincer

MORGANTOWN, West Virginia (Reuters) – A shortage of nurses at U.S. hospitals hit West Virginia’s Charleston Area Medical Center at the worst possible time.

The non-profit healthcare system is one of the state’s largest employers and sits in the heart of economically depressed coal country. It faces a $40 million deficit this year as it struggles with fewer privately insured patients, cuts in government reimbursement and higher labor costs to attract a shrinking pool of nurses.

To keep its operations intact, Charleston Medical is spending this year $12 million on visiting or “travel” nurses, twice as much as three years ago. It had no need for travel nurses a decade ago.

“I’ve been a nurse 40 years, and the shortage is the worst I’ve ever seen it,” said Ron Moore, who retired in October from his position as vice president and chief nursing officer for the center. Charleston Area Medical’s incentives include tuition reimbursement for nursing students who commit to work at the hospital for two years.

“It’s better to pay a traveler than to shut a bed,” he said.

Hospitals nationwide face tough choices when it comes to filling nursing jobs. They are paying billions of dollars collectively to recruit and retain nurses rather than risk patient safety or closing down departments, according to Reuters interviews with more than 20 hospitals, including some of the largest U.S. chains.

In addition to higher salaries, retention and signing bonuses, they now offer perks such as student loan repayment, free housing and career mentoring, and rely more on foreign or temporary nurses to fill the gaps.

The cost nationwide for travel nurses alone nearly doubled over three years to $4.8 billion in 2017, according to Staffing Industry Analysts, a global advisor on workforce issues.

The burden falls disproportionately on hospitals serving rural communities, many of them already straining under heavy debt like the Charleston Area Medical Center.

These hospitals must offer more money and benefits to compete with facilities in larger metropolitan areas, many of them linked to well-funded universities, interviews with hospital officials and health experts show.

Along West Virginia’s border with Pennsylvania, university-affiliated J.W. Ruby Memorial Hospital in Morgantown is spending $10.4 million in 2017 compared with $3.6 million a year earlier to hire and retain nurses.

But these costs are part of the facility’s expansion this year, including adding more than 100 beds as it grows programs and takes over healthcare services from smaller rural providers that have scaled back or closed.

J.W. Ruby, the flagship hospital for WVU Medicine, offers higher pay for certain shifts, tuition reimbursement, $10,000 signing bonuses and free housing for staff who live at least 60 miles away.

Next year, the hospital is considering paying college tuition for the family members of long-time nurses to keep them in West Virginia.

“We’ll do whatever we need to do,” said Doug Mitchell, vice president and chief nursing officer of WVU Medicine-WVU Hospitals.

NOT LIKE OTHER SHORTAGES

Nursing shortages have occurred in the past, but the current crisis is far worse. The Bureau of Labor Statistics estimates there will be more than a million registered nurse openings by 2024, twice the rate seen in previous shortages.

A major driver is the aging of the baby boomer generation, with a greater number of patients seeking care, including many more complex cases, and a new wave of retirements among trained nurses.

Industry experts, from hospital associations to Wall Street analysts, say the crisis is harder to address than in the past. A faculty shortage and too few nursing school slots has contributed to the problem.

Hospitals seek to meet a goal calling for 80 percent of nursing staff to have a four-year degree by 2020, up from 50 percent in 2010. They also face more competition with clinics and insurance companies that may offer more flexible hours.

Healthcare experts warn that the shortfall presents risks to patients and providers. Research published in August in the International Journal of Nursing Studies found that having inadequate numbers of registered nurses on staff made it more likely that a patient would die after common surgeries.

UAB Hospital in Birmingham, Alabama, has invested millions to attract nurses, but still has 300 jobs to fill. At times, nursing vacancy rates in some of its departments has hit 20 percent or higher.

“We’ve rarely canceled a surgery or closed a bed because of lack of staffing,” said Terri Poe, chief of nursing at the hospital, the state’s largest, which serves many low income and uninsured residents.

Last year, the medical center covered nearly $200 million in unreimbursed medical costs for patients. It spent $4.5 million for visiting nurses during fiscal 2016, including $3 million for post-surgery services, compared with $858,000 in 2012.

Healthcare labor costs typically account for at least half of a facility’s expenses. They jumped by 7.6 percent nationally last year, after climbing at a rate closer to 5 percent annually in recent years, said Beth Wexler, vice president non-profit healthcare at Moody’s. The spending has proven a boon for medical staffing companies like AMN Healthcare and Aya Healthcare.

Missouri’s nursing shortage reached a record high in 2017, with almost 16 percent – or 5,700 – of positions vacant, up from 8 percent last year. Thirty-four percent of Missouri registered nurses are 55 or older.

“Our biggest challenge is getting the pipeline of experienced nurses,” said Peter Callan, director of talent acquisition and development at the University of Missouri Health Care in Columbia, which is expanding. “There are fewer and fewer as people retire.”

Last year, the academic medical center hired talent scouts to identify candidates, Callan said. It spends $750,000 a year on extras to attract and keep nurses, including annual $2,000 bonuses to registered nurses who remain in hard-to-fill units and up to five years of student loan repayment assistance. It offers employee referral bonuses and a chance to win a trip to Hawaii.

Smaller hospitals find it much harder to compete in this climate. More than 40 percent of rural hospitals had negative operating margins in 2015, according to The Chartis Center for Rural Health.

In rural Missouri, 25-bed Ste. Genevieve County Memorial Hospital had to offer signing bonuses, tuition reimbursement and pay differentials when staffing is “critically low” in units such as obstetrics.

They haven’t closed beds, but have hired less experienced nurses, raised salaries and turned away at least one patient who would have been in its long term care program.

“We’ve had to try whatever it takes to get nurses here,” said Rita Brumfield, head of nursing at the hospital. “It’s a struggle every day to get qualified staff.”

To see the entire graphic on the U.S. nursing shortage, click http://tmsnrt.rs/2xQ9Y0K

(Editing by Michele Gershberg and Edward Tobin)

No visas, bad jobs: Venezuelan emigrants reluctantly return home

By Andreina Aponte and Anggy Polanco

CARACAS/SAN CRISTOBAL, Venezuela (Reuters) – Early last year, Leandro Colmenares sold his car and his apartment and fled Venezuela’s profound economic crisis, joining a wave of emigration to other Latin American countries.

Colmenares, a medical equipment repairman, first set up in Panama with $7,000 in hand. When he could not get a visa and struggled to find work, he ended up with odd jobs like painting houses and doing electrical wiring for $25 a day.

“In Venezuela, I was rubbing shoulders with doctors. Months later I was mopping the floor in a Panama furniture shop,” said Colmenares, who has two sons, including one who is disabled.

He then tried his luck in Colombia, where he again took odd jobs, mostly cooking. He opened a small cafe with other Venezuelans but it failed.

“It was bad, I was going hungry. On weekends I ate once,” he said. And once again, he could not get a visa.

Crushed and having run out of money, Colmenares decided in February he had no choice but return to Venezuela empty-handed and by bus – one of an apparently growing number of Venezuelan emigrants forced to go home after failing to start a new life elsewhere in Latin America.

These recent migrants are often poor, hopping on buses to Latin American capitals with as little as a few hundred dollars and scant prospect of finding a decent job.

“The country I left was bad. When I came back it was worse,” said Colmenares, noting steep prices and ever less food on store shelves. He spends his days in his home in poor central Caracas, scraping out a living making dough for corn patties.

For decades after World War II, Venezuela’s flourishing oil economy made it a destination for mass immigration from southern Europe, with Portuguese bakeries and Spanish bars a common sight across Caracas.

But during 18 years of Socialist rule, an increase in crime, economic decay and political protests have prompted emigration to Miami, Madrid, and the rest of Latin America.

Sociologist Tomas Paez estimates over 2 million Venezuelans have left the country of 30 million, accelerating in the last two years as the OPEC member’s recession has worsened, leading to shortages of vital medicines and food, runaway inflation and lack of formal jobs.

While the early diaspora was mostly a middle-class phenomenon, recent migrants are more likely to be poor, heightening the chances that they will struggle.

There is no data on returnees but Reuters interviewed 10 Venezuelans who had emigrated after President Nicolas Maduro took office in 2013 only to return.

“ALL YOU DO IS SURVIVE”

For Miguel Blanco, a Caracas-based sociologist, the degree of poverty among people now leaving the country has led to more of them returning.

“When migration is triggered by push factors, it can lead the migrant to fail because of lack of money,” said Blanco.

Pockets of Venezuelan economic migrants, once a relatively rare sight in South America, have sprung up in cities from Bogota to Santiago de Chile. They are often seen hawking traditional corn patties on the streets or offering door-to-door beauty treatments.

Panama’s head of migration said in August that some 2,000 Venezuelans were setting up there every week, compared with about 500 to 600 before August, when Maduro’s government created a legislative superbody that was widely condemned by the opposition and other countries as a power grab.

With about 60,000 Venezuelans already in Panama, the government has implemented visas as an entry requirement.

Peru has estimated that in the first half of 2017 some 40,000 Venezuelans entered the country.

Venezuelan government supporters have said the extent of emigration has been exaggerated. Maduro’s administration scoffs at those who leave as selfish and unpatriotic. The Information Ministry did not respond to a request for data.

Colombia, which shares a porous border of some 2,219 kilometers with Venezuela, has estimated that about 36,000 Venezuelans enter daily, and that some 2,000 do not immediately return to their country.

Gerson Lopez, a 30-year-old graphic designer, said he was paid less by a Colombian beauty product company because he did not have legal documents.

“Informal work there is very exploitative,” said Lopez. “Venezuelans are doing the work Colombians don’t want to do.”

Lopez was broke when he returned to Venezuela in late January after being unable to find good work in Bogota.

“You have to think very hard if you’re going to leave,” he said, adding bitterly, “(But) here you don’t have any opportunities. All you do is survive.”

(Additional reporting by Marco Aquino in Lima, Fabian Cambero in Santiago and Anthony Boadle in Brasilia; Writing by Alexandra Ulmer; Editing by Dan Flynn)

U.S. jobless claims fall to more than one-month low

Pedestrians pass a sign advertising a sale and a job opening at a shop on Newbury Street in Boston, Massachusetts, U.S., October 11, 2017. REUTERS/Brian Snyder

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits fell to more than a one-month low last week as claims in Texas and Florida continued to decline after being boosted by Hurricanes Harvey and Irma.

Initial claims for state unemployment benefits decreased 15,000 to a seasonally adjusted 243,000 for the week ended Oct. 7, the lowest level since late August, the Labor Department said on Thursday. Data for the prior week was revised to show 2,000 fewer applications received than previously reported.

A Labor Department official said Harvey and Irma along with Hurricane Maria affected claims for Texas, Florida, South Carolina, Puerto Rico and the Virgin Islands. In addition, claims for Virginia were estimated.

Economists polled by Reuters had forecast claims falling to 251,000 in the latest week. Claims have been declining since surging to an almost three-year high of 298,000 at the start of September as workers displaced by the hurricanes were left temporarily unemployed.

As a result of Harvey and Irma, nonfarm payrolls dropped by 33,000 jobs last month, the first decrease in employment in seven years. A rebound in job growth is expected in October, boosted by the return of the dislocated workers as well as the start of rebuilding and clean-up efforts in storm-ravaged areas.

Underscoring the labor market’s underlying strength, claims have now been below the 300,000 threshold, which is associated with a robust labor market, for 136 straight weeks. That is the longest such stretch since 1970, when the labor market was smaller.

The labor market is near full employment, with the jobless rate at more than a 16-1/2-year low of 4.2 percent.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 9,500 to 257,500 last week.

The claims report also showed the number of people still receiving benefits after an initial week of aid dropped 32,000 to 1.89 million in the week ended Sept. 30, the lowest level since December 1973.

The so-called unadjusted continuing claims for Texas and Florida fell, suggesting some of the workers affected by Harvey and Irma had returned to their jobs. The unemployment rate among people receiving jobless benefits fell one-tenth of a percentage point to 1.3 percent.

Overall continuing claims have now been below the 2 million mark for 26 straight weeks, indicating that labor market slack continues to diminish. The four-week moving average of continuing claims fell 11,500 to 1.93 million, remaining below the 2 million level for the 24th consecutive week.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. job openings at record high; qualified workers scarce

FILE PHOTO: Men walk in the hall outside a Hire Our Heroes job fair targeting unemployed military veterans and sponsored by the Cable Show, a cable television industry trade show in Washington, June 11, 2013. REUTERS/Jonathan Ernst/File Photo

WASHINGTON (Reuters) – U.S. job openings rose to a record high in July, suggesting a slowdown in job growth in August was an aberration and that the labor market was strong before the recent disruptive hurricanes.

The monthly Job Openings and Labor Turnover Survey, or JOLTS, released by the Labor Department on Tuesday showed the labor market continued to tighten amid a scarcity of workers.

The strong labor market fundamentals could encourage the Federal Reserve to continue tightening monetary policy this year despite inflation persistently running below the U.S. central bank’s 2 percent target.

“Employers need skilled labor and experienced workers are in short supply, which continues to suggest the economy has returned to a relatively normal labor market that does not need exceptional support from the Fed,” said John Ryding, chief economist at RDQ Economics in New York.

Job openings, a measure of labor demand, increased by 54,000 to a seasonally adjusted 6.2 million. That was the highest level since the data series started in December 2000. Job openings have now been above 6 million for two straight months.

Hiring increased 69,000 to 5.5 million in July, lifting the hiring rate to a near 1-1/2-year high of 3.8 percent from 3.7 percent in June.

Labor market tightness was also underscored by another report from the National Federation of Independent Business.

The NFIB survey showed a record share of small businesses in August ranked difficulties finding qualified workers as “their top business problem.” The rise in job vacancies in July bolsters views that August’ s moderation in job gains was largely because of a seasonal quirk.

SOLID SHAPE

Nonfarm payrolls increased by 156,000 jobs last month, with the private services sector hiring the smallest number of workers in five months. Job growth in September could, however, be held back by hurricanes Harvey and Irma, which struck Texas and Florida, respectively.

The two states account for about 14 percent of U.S. employment. Temporary unemployment as a result of flooding from Harvey has already caused a surge in first-time applications for jobless benefits.

“The JOLTS data signal that the labor market was in solid shape in July and support our view that we should not be very concerned about the modest disappointment in the August payroll report,” said Daniel Silver, an economist at JPMorgan in New York.

JOLTS is one of the job market metrics on Fed Chair Janet Yellen’s dashboard. Economists expect the U.S. central bank will announce a plan to start reducing its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities at its Sept. 19-20 policy meeting.

Benign inflation amid sluggish wage growth, however, suggests the Fed will delay raising interest rates again until December. It has increased borrowing costs twice this year.

Job openings in transportation, warehousing and utilities increased 70,000 in July and educational services had an additional 26,000 vacancies. There were 20,000 more job openings in construction.

Manufacturing, however, saw a 29,000 drop in vacancies in July. Health care and social assistance job openings decreased 72,000 and federal government vacancies declined 21,000.

About 3.2 million Americans voluntarily quit their jobs in July, up from 3.1 million in June. The quits rate, which the Fed looks at as a measure of job market confidence, rose to 2.2 percent from 2.1 percent in June.

“One of the problems facing firms is that workers are still pretty much locked into their current positions,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. “With companies unwilling to bid for workers from other firms, there is little reason to leave and that is limiting the availability of qualified workers.”

Layoffs fell 23,000 to 1.78 million in July.

(Reporting by Lucia Mutikani; Editing by Phil Berlowitz)

U.S. jobless claims drop to near six-month low

FILE PHOTO: People wait in line to attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson/File Photo

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits fell to near a six-month low last week, pointing to a further tightening in the labor market that could encourage the Federal Reserve to lay out a plan to start unwinding its massive bond portfolio.

Labor market strength was corroborated by other data on Thursday showing manufacturers in the mid-Atlantic region sharply increased hours for workers in August amid a jump in new orders and unfilled orders.

Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 232,000 for the week ended Aug. 12, the Labor Department said.

That was the lowest level since the week ended Feb. 25 when claims fell to 227,000, which was the best reading since March 1973. Data for the prior week was unrevised.

It was the 128th week that claims remained below 300,000, a threshold associated with a robust labor market. That is the longest such stretch since 1970, when the labor market was smaller. The unemployment rate is 4.3 percent.

Economists polled by Reuters had forecast claims dropping to 240,000 in the latest week. A Labor Department official said there were no special factors influencing the claims data and that no states had been estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 500 to 240,500 last week.

Prices of U.S. Treasuries were trading lower as were U.S. stock index futures. The dollar <.DXY> was stronger against a basket of currencies.

LABOR MARKET STRENGTH Last week’s claims data covered the survey week for the August nonfarm payrolls. The four-week average of claims fell 3,500 between the July and August survey periods, suggesting another month of solid job growth.

Payrolls increased by 209,000 jobs in July. The economy has added 1.29 million jobs this year and the unemployment rate has fallen five-tenths of a percentage point.

Labor market tightness has, however, failed to generate strong wage growth, contributing to inflation consistently below the Fed’s 2 percent target.

Minutes of the U.S. central bank’s July 25-26 policy meeting showed policymakers appeared increasingly cautious about weak inflation, with some urging against further interest rate increases.

But labor market strength is probably sufficient for the Fed to outline a proposal to begin offloading its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities at its next policy meeting in September.

Most economists expect another rate hike in December. The Fed has increased borrowing costs twice this year.

In a second report on Thursday, the Philadelphia Fed said its index of manufacturing in the mid-Atlantic region slipped to 18.9 this month from 19.5 in July.

Despite the modest pullback, manufacturers reported increased demand for their products. The survey’s measure of new orders surged to 20.4 from 2.1 in July. Firms also reported that shipments continued to rise.

As a result, workers put in more hours. The average workweek index increased to 18.8 in August from 3.8 in the prior month.

A third report from the Fed showed manufacturing output fell 0.1 percent in July as the production of motor vehicles and parts tumbled 3.6 percent.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Thousands of protesters disrupt traffic in India’s financial capital

By Rajendra Jadhav

MUMBAI (Reuters) – More than 200,000 protesters poured into India’s financial capital on Wednesday, disrupting traffic and straining the railway network, to press their demands for reserved quotas in government jobs and college places for students.

Rising unemployment and falling farm incomes are driving farming communities across India, from the state of Haryana in the north to Gujarat in the west, to redouble calls for reservations in jobs and education.

“Farming is no longer profitable and jobs are not available,” said one protester, Pradip Munde, a farmer from Osmanabad, a town more than 400 km (250 miles) southeast of Mumbai. “Reservation can ensure us better education and jobs.”

Two-thirds of India’s population of 1.3 billion depend on farming for their livelihood, but the sector makes up just 14 percent of gross domestic product, reflecting a growing divide between the countryside and increasingly well-off cities.

Young people and senior citizens of western India’s Maratha community waved saffron flags in a protest police said was free of incidents of violence, with more than 10,000 policemen on guard amid an estimated turnout of 200,000 demonstrators.

Traffic came to a halt in many parts of the business district, while protesters jammed suburban trains.

It was the concluding protest of a series of 57 marches last year across the surrounding western state of Maharashtra, organized by the state’s Maratha community to press its demands.

The city’s famed dabbawalas, who deliver packed lunches to hundreds working in offices across Mumbai, suspended operations for the day, as did schools in the affected area.

(Reporting by Rajendra Jadhav; Editing by Clarence Fernandez)

U.S. payrolls increase more than expected, wages rise

FILE PHOTO - Job seekers line up to apply during "Amazon Jobs Day," a job fair being held at 10 fulfillment centers across the United States aimed at filling more than 50,000 jobs, at the Amazon.com Fulfillment Center in Fall River, Massachusetts, U.S., August 2, 2017. REUTERS/Brian Snyder

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. employers hired more workers than expected in July and raised their wages, signs of labor market tightness that likely clears the way for the Federal Reserve to announce next month a plan to start shrinking its massive bond portfolio.

The Labor Department said that nonfarm payrolls increased by 209,000 jobs last month amid broad gains. June’s employment gain was revised up to 231,000 from the previously reported 222,000.

Average hourly earnings increased nine cents, or 0.3 percent, in July after rising 0.2 percent in June. That was the biggest increase in five months. Wages increased 2.5 percent in the 12 months to July, matching June’s gain.

Average hourly earnings have been trending lower since surging 2.8 percent in February. Lack of strong wage growth is surprising given that the economy is near full employment, but July’s monthly increase in earnings could offer some assurance to Fed officials that inflation will gradually rise to its 2 percent target.

Economists expect the Fed will announce a plan to start reducing its $4.5 trillion portfolio of Treasury bonds and mortgage-backed securities in September.

Sluggish wage growth and the accompanying benign inflation, however, suggest the U.S. central bank will delay raising interest rates again until December. The Fed has raised rates twice this year, and its benchmark overnight lending rate now stands in a range of 1 percent to 1.25 percent.

Economists polled by Reuters had forecast payrolls increasing by 183,000 jobs in July and wages rising 0.3 percent.

Wage growth is crucial to sustaining the economic expansion after output increased at a 2.6 percent annual rate in the second quarter, an acceleration from the January-March period’s pedestrian 1.2 percent pace.

The unemployment rate dropped one-tenth of a percentage point to 4.3 percent, matching a 16-year low touched in May. It has declined four-tenths of a percentage point this year and matches the most recent Fed median forecast for 2017. July’s decline in the jobless rate came even as more people entered the labor force.

The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, rose one-tenth of a percentage point to 62.9 percent.

Still, some slack remains in the labor market, which is restraining wage growth. A broad measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, was unchanged at 8.6 percent last month.

July’s employment gains exceed the monthly average of 184,000 for this year. The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population.

Republican President Donald Trump, who inherited a strong job market from the Obama administration, has pledged to sharply boost economic growth and further strengthen the labor market by slashing taxes, cutting regulation and boosting infrastructure spending.

But after six months in office, the Trump administration has failed to pass any economic legislation and has yet to articulate plans for tax reform and infrastructure spending as well as most of its planned regulatory roll-backs.

The jobs composition in July mirrored June’s. Manufacturing payrolls increased by 16,000 jobs. Employment in the automobile sector rose by 1,600 despite slowing sales and bloated inventories that have forced manufacturers to cut back on production.

U.S. auto sales fell 6.1 percent in July from a year ago to a seasonally adjusted rate of 16.73 million units. General Motors Co and Ford Motor Co have both said they will cut production in the second half of the year.

Construction firms hired 6,000 workers last month. Retail payrolls increased by 900 in July as hiring by online retailers more than offset job losses at brick-and-mortar stores.

Companies like major online retailer Amazon are creating jobs at warehouses and distribution centers. Amazon this week held a series of job fairs to hire about 50,000 workers.

Government payrolls gained 4,000 in July.

(Reporting by Lucia Mutikani; Editing by James Dalgleish and Paul Simao)

U.S. private sector adds 178,000 jobs in July: ADP

A sign advertises manufacturing jobs at Ideal Concrete Block Company in Westford, Massachusetts, U.S., July 17, 2017. REUTERS/Brian Snyder

NEW YORK (Reuters) – U.S. private employers added 178,000 jobs in July, below economists’ expectations, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 185,000 jobs, with estimates ranging from 151,000 to 225,000 jobs added.

Private payroll gains in the month earlier were revised up to 191,000 from an originally reported 158,000 increase.

The report is jointly developed with Moody’s Analytics.

The ADP figures come ahead of the U.S. Labor Department’s more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment.

Economists polled by Reuters are looking for U.S. private payroll employment to have grown by 180,000 jobs in July, down from a gain of 187,000 the month before. Total non-farm employment is expected to have increased by 183,000.

The unemployment rate is forecast to tick down to 4.3 percent from the 4.4 percent recorded a month earlier.

(U.S. Financial Markets Team; Editing by Meredith Mazzilli)

U.S. allows more seasonal workers as Trump pushes ‘hire American’

President Donald Trump looks at Sikorsky helicopters miniature models. "Your drivers are very good," Trump said to a representative of Ping, the Arizona-based maker of golf clubs, noting that he had golfed with British pro golfer Lee Westwood, who is a fan. He discussed sales of Sikorsky helicopters - "I have three of them!" he said, lifted horseshoes made with Nucor Corp steel, and strolled past vacuum-sealed Omaha steaks.

By Doina Chiacu and David Shepardson

WASHINGTON (Reuters) – The U.S. government cleared the way on Monday for thousands more foreign workers to enter the country under temporary seasonal visas, just as President Donald Trump declared this “Made In America” week and pledged to stand up for U.S. workers.

Advocates of stricter limits on immigration criticized the additional visas, saying American workers should get job openings.

Trump, a former New York real estate magnate who has relied on seasonal workers at his hotels and resorts, campaigned on promises to restore American jobs. On Monday, he showcased “Made in America” products at the White House and made an impassioned defense of America First policies.

“We’re going to stand up for our companies and maybe most importantly for our workers,” the Republican president said. “Clearly it’s time for a new policy, one defined by two simple rules: We will buy American. And we will hire American.”

Federal officials said there were not enough qualified and willing American workers available to perform certain types of temporary nonagricultural work.

As a result, the government will allow 15,000 additional visas for temporary seasonal workers, meant to help American businesses in danger of suffering irreparable harm because of a shortage of such labor, the Department of Homeland Security said in a statement.

“As a demonstration of the administration’s commitment to supporting American businesses, DHS is providing this one-time increase to the congressionally set annual cap,” Secretary of Homeland Security John Kelly said in a statement.

Many seasonal businesses such as resorts, landscaping companies and seafood harvesters and processors had sought permission to temporarily hire more immigrants.

Congress originally set the cap at 66,000 workers for the fiscal year ending Sept. 30. In May, lawmakers gave Kelly authority to approve up to an additional 70,000 temporary visas and pleaded with him to use his authority to issue as many of them as he thought appropriate.

Roy Beck, president of NumbersUSA, a group that supports immigration controls, said in a statement the decision “threatens to reverse the trend of reports emerging around the country of employers working harder and raising pay to successfully recruit more unemployed Americans for lower-skilled jobs.”

Beck said it was “yet another example of the administration and Congress failing to keep the Trump campaign promise of putting American workers first.”

‘MINIMAL RELIEF GRANTED’

Trump campaigned on an “America First” platform of favoring Americans for hiring. Trump’s golf resorts in Florida have used the visas, however, to hire temporary guest workers (http://reut.rs/1R4pKma).

The clothing line of the president’s older daughter and adviser, Ivanka Trump, uses foreign factories employing low-wage workers in countries such as Bangladesh, Indonesia and China, a recent Washington Post report showed.

A group of U.S. companies that use the visas, called the “the H-2B Workforce Coalition,” praised the “minimal relief granted.”

It said: “From landscapers in Colorado to innkeepers in Maine to seafood processors along the Gulf Coast to carnivals nationwide, we hope the visa expansion will help some businesses avoid substantial financial loss, and in some cases, prevent early business closures during their peak season.”

A report on Monday by the Economic Policy Institute, a liberal think tank, found, however, there was little evidence of worker shortages in H-2B jobs at the national level.

“Expanding the H-2B program without reforming it to improve protections and increase wages for migrant workers will essentially allow unscrupulous employers to carve out an even larger rights-free zone in the low-wage labor market,” said Daniel Costa, director of immigration law and policy research at the institute.

Kelly has acknowledged that many temporary workers “are victimized when they come up here, in terms of what they’re paid.”

DHS said the government had created a tip line to report any abuse of the visas or employer violations.

(Reporting by Doina Chiacu and David Shepardson in Washington; Additional reporting by Mica Rosenberg in New York; Editing by Marguerita Choy and Peter Cooney)

U.S. job growth seen accelerating; unemployment rate steady

FILE PHOTO: Leaflets lie on a table at a booth at a military veterans' job fair in Carson, California October 3, 2014. REUTERS/Lucy Nicholson/File Photo

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. employers likely stepped up hiring in June and boosted wages for workers, signs of labor market strength that could keep the Federal Reserve on course for a third interest rate increase this year.

According to a Reuters survey of economists, the Labor Department’s closely watched employment report on Friday will probably show that nonfarm payrolls increased by 179,000 jobs last month after gaining 138,000 in May.

The unemployment rate is forecast steady at a 16-year low of 4.3 percent. It has dropped five-tenths of a percentage point this year and matches the most recent Fed median forecast for 2017.

Economists say labor market buoyancy could also encourage the U.S. central bank to announce plans to start reducing its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities in September.

“June’s employment report could provide sufficient evidence to Fed officials that they are still positioned to proceed with their monetary policy normalization plans in the second half of the year,” said Sam Bullard, a senior economist at Wells Fargo securities in Charlotte, North Carolina.

The Fed raised its benchmark overnight interest rate in June for the second time this year. But with inflation retreating further below the central bank’s 2 percent target in May, economists expect another rate hike only in December.

June’s anticipated employment gains would be close to the 186,000 monthly average for 2016 and reinforce views that the economy regained speed in the second quarter after a sluggish performance at the start of the year.

But the pace of job growth is expected to slow as the labor market hits full employment. There is growing anecdotal evidence of companies struggling to find qualified workers.

As a result, some companies are raising wages in an effort to attract and retain their workforces. Economists expect worker shortages to boost wage growth, which has remained stubbornly sluggish despite the tightening labor market.

EYES ON WAGES

Average hourly earnings are forecast increasing 0.3 percent in June after gaining 0.2 percent in May. That could lift the year-on-year increase in wages to 2.7 percent from 2.5 percent in May.

“The days of month after month of 200,000 jobs being created are likely behind us,” said Ryan Sweet, senior economist at Moody’s Analytics in West Chester, Pennsylvania.

“We will see trend job growth continue to moderate. That doesn’t necessarily signal that the expansion is running out of juice or that a recession is imminent, it is just a symptom of a full-employment economy.”

The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population.

But Republicans have struggled with healthcare legislation and there are also worries that political scandals could derail the Trump administration’s economic agenda.

Job gains were likely broad in June. Manufacturing payrolls likely rebounded after factories shed 1,000 jobs in May. But employment in the automobile sector probably declined further as slowing sales and bloated inventories force manufacturers to cut back on production.

Ford Motor Co has announced plans to slash 1,400 salaried jobs in North America and Asia through voluntary early retirement and other financial incentives. Others, like General Motors are embarking on extended summer assembly plant shutdowns, which will temporarily leave workers unemployed.

Further job gains are likely in construction.

The retail sector is expected to have purged jobs for a fifth straight month as department store operators like J.C. Penney Co Inc, Macy’s Inc and Abercrombie & Fitch struggle against stiff competition from online retailers led by Amazon.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

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