Job growth slows, but wages rebound strongly

People wait in line for job fair

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. employment increased less than expected in December but a rebound in wages pointed to sustained labor market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year.

Nonfarm payrolls increased by 156,000 jobs last month, the Labor Department said on Friday. The gains, however, are more than sufficient to absorb new entrants into the labor market.

Fed Chair Janet Yellen has said the economy needs to create just under 100,000 jobs a month to keep up with growth in the work-age population. Employers hired 19,000 more workers than previously reported in October and November.

“Job creation and overall labor market conditions remain solid. With the potential for stronger fiscal stimulus in the form of infrastructure spending and tax cuts, job creation appears likely to remain on a solid footing in 2017,” said Jim Baird, chief investment officer for Plante Moran Financial Advisors in Kalamazoo, Michigan.

The economy created 2.16 million jobs in 2016. Average hourly earnings increased 10 cents or 0.4 percent in December after slipping 0.1 percent in November. That pushed the year-on-year increase in earnings to 2.9 percent, the largest gain since June 2009, from 2.5 percent in November.

While the unemployment rate ticked up to 4.7 percent from a nine-year low of 4.6 percent in November that was because more people entered the labor force, a sign of confidence in the labor market.

The employment report added to data ranging from housing to manufacturing and auto sales in suggesting that President-elect Donald Trump is inheriting a strong economy from the Obama administration. The labor market momentum is likely to be sustained amid rising business and consumer confidence.

Trump, who takes over from President Barack Obama on Jan. 20, has pledged to increase spending on the country’s aging infrastructure, cut taxes and relax regulations. These measures are expected to boost growth this year.

But the proposed expansionary fiscal policy stance could increase the budget deficit. That, together with faster economic growth and a labor market that is expected to hit full employment this year could raise concerns about the Fed falling behind the curve on interest rate increases.

The U.S. central bank raised its benchmark overnight interest rate last month by 25 basis points to a range of 0.50 percent to 0.75 percent. The Fed forecast three rate hikes this year.

The dollar rose against a basket of currencies on the employment data, while U.S. government bonds were trading lower. U.S. stock index futures rose.

FACTORY JOBS RISE

Economists had forecast payrolls rising by 178,000 jobs last month and the unemployment rate ticking up one tenth of a percentage point to 4.7 percent.

A broad measure of unemployment that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment fell one-tenth to a more than 8-1/2-year low of 9.2 percent.

Employment growth in 2016 averaged 180,000 jobs per month, down from an average gain of 229,000 per month in 2015. The slowdown in job growth is consistent with a labor market that is near full employment.

There has been an increase in employers saying they cannot fill vacant positions because they cannot find qualified workers. The skills shortage has been prominent in the construction industry.

Even as the labor market tightens, there still remains some slack. 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 percentage point to 62.7 percent in December.

The participation rate remains near multi-decade lows. Some of the decline reflects demographic changes.

December’s job gains were broad, with manufacturing payrolls rising 17,000 after declining for four straight months. Construction payrolls fell 3,000 in December after three consecutive months of increases.

Retail sector employment rose 6,300 after increasing 19,500 in November. Department store giants Macy’s <M.N> and Kohl’s Corp <KSS.N> this week reported a drop in holiday sales. Macy’s said it planned to cut 10,000 jobs beginning this year.

Department stores have suffered from stiff competition from online rivals including Amazon.com <AMZN.O>. Temporary help declined 15,500 last month, the biggest drop since January.

Education and health services employment rose 70,000, the biggest increase since February. Government employment increased 12,000 in December.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Nuclear, missile tests show ‘qualitative’ improvement in North Korea capabilities: U.S.

North Korea leader Kim Jong Un watching missile test

By David Brunnstrom and Lesley Wroughton

WASHINGTON (Reuters) – The United States said on Thursday North Korea had demonstrated a “qualitative” improvement in its nuclear and missile capabilities after an unprecedented level of tests last year, showing the needed to sustain pressure on Pyongyang to bring it back to disarmament negotiations.

U.S. Deputy Secretary of State Antony Blinken told a joint news conference after a meeting with his Japanese and South Korean counterparts that North Korea had conducted 24 missile tests in the past year, as well as two nuclear tests, and learned from each one.

“Even a so-called failure is progress because … they apply what they have learned to their technology and to the next test. And in our assessment, we have a qualitative improvement in their capabilities in the past year as a result of this unprecedented level of activity,” he said.

“With every passing day the threat does get more acute,” Blinken said, and referred to comments by North Korea’s leader, Kim Jong Un, on Sunday that his country was close to test-launching an intercontinental ballistic missile (ICBM) of a kind that could someday hit the United States.

Blinken said it was vital for the United States, Japan, South Korea and other countries to boost cooperation to defend against the threat.

“At the same time, it’s absolutely vitally important that we exercise sustained, comprehensive pressure on North Korea to get it to stop these programs, to come back to the negotiating table, and to engage in good faith on denuclearization,” Blinken said, referring to international sanctions.

U.S. President-elect Donald Trump responded on Monday to Kim’s comments on an ICBM test by declaring in a tweet that “It won’t happen!”

Experts say preventing such a test is far easier said than done, and Trump gave no indication what new steps he might take to roll back North Korea’s weapons programs after he takes office on Jan. 20, something successive U.S. administrations, both Democratic and Republican, have failed to do.

Former U.S. officials and other experts say the United States essentially had two options when it came to trying to curb North Korea’s fast-expanding nuclear and missile programs – negotiate or take military action.

Neither path offers certain success and the military option is fraught with huge dangers, especially for Japan and South Korea, given their close proximity to North Korea.

Japanese Vice Foreign Minister Shinsuke Sugiyama said Tokyo was watching closely to see what kind of Asia policy Trump would follow, but did not expect major changes.

“Will it be exactly the same as we have it now? I doubt it. But basically, I don’t see the direction as changing in a significant way,” he told the news conference, adding that the U.S. security treaties with Tokyo and Seoul were an important pillar of U.S. policy.

Blinken said an effective sanctions campaign required “determination” and “patience.” “I believe that as long as we sustain it and build on it, it will have an effect,” he said.

In another tweet on Monday, Trump said North Korea’s neighbor and only ally, China, was not helping to contain Pyongyang – despite Beijing’s support for successive rounds of U.N. sanctions.

Blinken said Washington had seen positive signs from China in recent weeks in implementing new restrictions on coal imports from North Korea, but added: “That needs to be sustained … to be carried forward.”

(Reporting by David Brunnstrom and Lesely Wroughton; Editing by James Dalgleish and Lisa Shumaker)

Record snow and rain stretches across parched U.S. west

(Reuters) – Record snow and rain pummeled the western United States on Thursday, raising the threat of floods and freezing temperatures in some areas across the region, weather officials said.

Winter storm warnings were in effect in parts of California, Colorado, Wyoming and Utah following days of snowfall and cold.

California, where a five-year drought has triggered dozens of wildfires, was bracing for floods after heavy rainfall earlier in the week. Rivers are expected to overflow in northern and central parts of the state at a rate last seen in December 2005, the National Weather Service said.

Snow in the Sierra Nevada mountain range, which provides a critical source of water for California and has receded in recent years, is forecast to be twice the monthly average for January.

Snowstorms battered Oregon, which was in the grips of a moderate drought last year, prompting the closure of highways and schools.

In Medford, Oregon, a winter storm dumped more than eight inches of snow in a single day, the most the city has recorded over a 24-hour period in nearly a century, KTVL News 10 reported.

The Oregon State Police reported that its field office, located about 50 miles southeast of Portland, was buried under at least five feet of snow.

An 8-year-old girl was killed in the coastal area of Otis, Oregon, when a storm bringing high winds and snow caused a tree to crash onto her home earlier in the week, CBS reported.

In Boise, the capital city in the northwestern state of Idaho, 6.5 inches of snow fell on Wednesday, the most ever recorded on that date, the Weather Service said. Snow depth in the area was 15 inches, another record, it said.

(Reporting by Laila Kearney; Editing by Bernadette Baum)

Chicago’s gang violence catches highway drivers in crossfire

Mother cries for her son who was shot on the highway

By Timothy Mclaughlin

CHICAGO (Reuters) – Jonathan Ortiz and other members of his rap group, No Nights Off, stepped onto the stage at Chicago’s House of Blues in mid-September for a concert they hoped would propel their young, promising careers.

Less than two weeks later, the 22-year-old Ortiz, who forebodingly rapped under the stage name “John Doe,” was fatally shot as he drove on an expressway in Chicago. His girlfriend Alexis Garcia also got a bullet lodged in her back.

Ortiz and Garcia were victims of the 38th shooting on Chicago-area expressways in 2016, a record-high number for a city stung by a murder rate not seen in two decades.

“It is overwhelming that this is the reality in Chicago, that you can drive on the expressway now and get shot at,” said Tanue David, a family support specialist with the outreach group Chicago Survivors, who is working with the Ortiz family.

Officials say gang violence is increasingly spilling over onto Chicago’s expressways, with innocent drivers sometimes caught in the crossfire, while the state police force is shrinking.

The Illinois State Police, which has jurisdiction over the expressways, blamed gang warfare for the increased highway shoot-outs in 2016 that pose “an extreme danger to the motoring public.”

Ortiz was shot on Interstate 290, one of five expressways within city limits where shootings took place.

PERSISTENT INCREASE

Ortiz and Garcia were shot on the morning of Sept. 29 while Ortiz drove her SUV not far from his mother’s home.

Chicago police said Ortiz had no criminal record and several family members and friends said he was not affiliated with a gang. He and Garcia met three years ago on the shores of Lake Michigan.

“He was calm, that’s how I knew that God took him fast,” Garcia, who grew up in a suburb of Chicago, said of the moments after Ortiz was shot.

In 2011 and 2012, there were nine shootings on city expressways, according to state police, which had no data prior to that.

That number jumped to 16 in 2013 and 19 in 2014. It nearly doubled the next year to 37 and climbed again in 2016 to 47. Three shootings last year were fatal.

The rise in highway shootings came as Chicago suffered a broader surge in violence that saw 762 people murdered in 2016, a 57 percent increase from 2015, and the highest number since 1996.

The number drew the attention of President-elect Donald Trump, who said that Chicago’s mayor must ask for U.S. government help if the city fails to reduce its murder rate. [nL1N1ES0LX]

Chicago police cite a number of factors, including splintering gang structures and police drawing back from confrontation out of fear of increased scrutiny for their actions.

Chicago police Superintendent Eddie Johnson has vehemently blamed lax regulations for gun repeat offenders. “The people committing these crimes think the consequences for their actions are a joke,” he said last month.

DIFFICULT CRIME SCENES, DEPLETED RESOURCES

State police launched the Chicago Expressway Anti-violence Surge in February 2016 after the seventh freeway shooting, deploying aircraft, undercover officers and unmarked vehicles.

But the shooting numbers remained high and arrests were made in only one of last year’s expressway shootings. Uncooperative victims and expansive crime scenes hamper efforts to solve the cases, state police said.

Political gridlock in Springfield is also a factor, said Joe Moon, president of the Illinois Troopers Lodge 41 Fraternal Order of Police, the union representing state troopers.

Feuding between Republican Governor Bruce Rauner and Democrats who control the legislature has kept the state without a full operating budget since July 2015. That meant no cadet hires in 2015 and 2016, and 2017 remains in limbo as well, state police said. [nL1N1DF1XU]

Since 2000, the number of sworn officers has declined steadily to just over 1,600 from around 2,100, Moon said.

State police said the budget impasse had no impact on the force’s work. Governor Rauner’s spokeswoman, Catherine Kelly, declined to comment beyond what state police said.

At a December vigil, friends and family gathered by a roadside memorial of flowers and photos as one of Ortiz’s songs thumped from a nearby sports car.

“Chicago I beg of you … this needs to stop,” Ortiz’s friend Sharee Washington, 29, said. “You are destroying people.”

(Reporting by Timothy Mclaughlin in Chicago; Editing by David Gregorio)

Jobless claims fall to near 43-year low

Job seekers

WASHINGTON, Jan 5 (Reuters) – The number of Americans filing for unemployment benefits fell to near a 43 year-low last week, pointing to further tightening in the labor market.

Initial claims for state unemployment benefits dropped 28,000 to a seasonally adjusted 235,000 for the week ended Dec. 31, the Labor Department said on Thursday. That was close to the 233,000 touched in mid-November, which was the lowest level since November 1973.

Claims for the prior week were revised to show 2,000 fewer applications received than previously reported. But with claims data for six states and one territory estimated because of the New Year’s holiday, last week’s drop likely exaggerates the labor market’s strength.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 5,750 to 256,750 last week.

Claims have now been below 300,000, a threshold associated with a healthy labor market, for 96 consecutive weeks. That is the longest stretch since 1970, when the labor market was much smaller.

The labor market is considered to be at or near full employment, with the jobless rate at a nine-year low of 4.6 percent. Tightening labor market conditions and gradually firming inflation allowed the Federal Reserve to raise its benchmark overnight interest rate last month by 25 basis points to a range of 0.50 percent to 0.75 percent.

While the U.S. central bank forecast three rate hikes for 2017, minutes of the Dec. 13-14 policy meeting released on Wednesday suggested that the pace of increases would largely be determined by the labor market and fiscal policy.

Economists polled by Reuters had forecast first-time applications for jobless benefits falling to 260,000 in the latest week. Claims briefly pushed higher last month and in November, but economists blamed the gyrations on difficulties adjusting the data around moving holidays.

A Labor Department analyst said there were no special factors influencing last week’s data. That data has no bearing on December’s employment report, which is scheduled for release on Friday, as it falls outside the survey period.

According to a Reuters survey of economists, nonfarm payrolls likely increased by 178,000 jobs in December after the same gain in November.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid rose 16,000 to 2.11 million in the week ended Dec. 24. The four-week average of the so-called continuing claims increased 26,250 to 2.07 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

New York train crash injures more than 100 commuters

Emergency Vehicles gathered around train crash in NYC

By Jonathan Oatis

NEW YORK (Reuters) – A New York City train derailed at a downtown Brooklyn terminal during Wednesday’s morning rush hour, injuring more than 100 commuters in the metropolitan area’s second major rail accident since late September.

Emergency crews swarmed Atlantic Terminal after the Long Island Rail Road train went off the tracks inside the busy transportation hub at 8:20 a.m. local time, the New York City Fire Department said.

While none of the injuries were life-threatening, at least 11 people were sent to the hospital, Deputy Assistant Chief Dan Donoghue said at a briefing at the crash site. Between 600 and 700 people were on the train, he said.

The train, arriving from the Queens neighborhood of Far Rockaway, failed to stop on time. Traveling at a fairly slow speed, it derailed after striking a bumping block, New York Governor Andrew Cuomo said at the briefing.

About 103 people were injured, the fire department said in a Twitter message. The front two cars of the six-carriage train were severely damaged. The station’s partitions and bumping block, which prevents railway vehicles from going past the end of a section of track, were also damaged.

Passengers said the blood and chaos following the derailment was frightening.

“There were people crying,” said Aaron Neufeld, a 26-year-old paralegal who commutes on the rail line daily. “I saw some bloody faces.”

Neufeld, who was riding in the second car, said the train appeared to be approaching normally until it crashed, knocking passengers on top of one another and shattering glass windows.

“Bags went flying,” he said. “People were thrown to the ground.”

The engineer was probably responsible for failing to stop the train before it hit the bumper, said Tom Prendergast, chairman of the Metropolitan Transportation Authority, the agency that runs the railroad.

The train was traveling between 10 and 15 miles per hour as it approached the bumper, he said, which is standard.

“At that speed, it’s pretty much the locomotive engineer’s responsibility to stop the train,” Prendergast said as he stood beside Cuomo at the briefing. Investigators will interview the engineer, the conductor and brakeman to determine the cause of the accident, he said.

There were no major service disruptions for other Long Island Rail Road lines at the terminal, an MTA official said.

Earlier, officials said crews were working to restore service at the terminal by the evening rush hour.

In late September, a New Jersey Transit train crashed into a terminal in Hoboken, New Jersey, killing one woman and injuring 114 people, including the engineer.

Cuomo, who has made infrastructure improvements a centerpiece of his agenda, said Wednesday’s incident was minor in comparison. The most serious injury in the crash was a broken leg, he said.

“There was extensive damage in Hoboken,” Cuomo said. “That train was coming in much faster, did much more damage.”

The U.S. Federal Railroad Administration and the National Transportation Safety Board said they were sending investigators to the scene.

The Long Island Rail Road is the United State’s largest commuter rail system, serving more than 330,000 passengers a day, according to the American Public Transportation Association.

Atlantic Terminal, which also connects commuters to nine city subway lines, is one of the busiest New York stations.

(Additional reporting by Gina Cherelus, David Shepardson and David Ingram; Writing by Laila Kearney; Editing by Frank McGurty and Lisa Von Ahn)

New York City crime fell to historic low in 2016

New York City Buildings

By David Ingram

NEW YORK (Reuters) – Crime in New York City fell to a historic low last year, the police said on Wednesday in a report showing that the largest U.S. city avoided the spike in murders that has battered other major American cities, including Chicago.

Overall, there were 101,606 crimes that police said they knew about during 2016, down 4 percent from 2015, police said.

There were 335 murders reported last year, down 5 percent from the 352 murders a year earlier, police said. The record for the fewest since the city started keeping reliable numbers in 1963 was 328 murders in 2014.

By way of comparison, Chicago, which has about one-third as many residents as New York’s 8.6 million people, recorded 762 murders last year, more than twice as many killings as in New York.

That spike prompted President-elect Donald Trump to suggest on Monday that the city needed federal help.

The trendlines in New York pointed downward in nearly all categories of reported crime, as shootings fell 12 percent, rapes fell 1 percent, robberies fell 9 percent and burglaries fell 15 percent.

Reports of felony-level assaults were up 2 percent, while reports of grand larcenies were flat, according to police numbers.

Police, politicians and criminologists have hotly debated the reasons behind the sharp drop in U.S. crime since the early 1990s, when New York City had more than 2,000 murders a year.

They have put forward explanations such as changing tactics, better data collection or even a reduction in lead poisoning.

New York City Police Commissioner James O’Neill credited last year’s reductions to a “laser-like precision” on gangs and to the department’s neighborhood policing program, which is aimed at improving relations between officers and the communities they patrol.

In a statement, O’Neil said, “2016 was the safest year ever in the history of New York City.”

(Reporting by David Ingram; Editing by Scott Malone and Lisa Shumaker)

North Korea’s Intercontinental ballistic missile is plausible, could reach U.S.

A new engine for an intercontinental ballistic missile (ICBM) is tested at a test site at Sohae Space Center in Cholsan County, North Pyongan province in North Korea in this undated photo released by North Korea's Korean Central News Agency

By James Pearson

SEOUL (Reuters) – North Korea has been working through 2016 on developing components for an intercontinental ballistic missile (ICBM), making the isolated nation’s claim that it was close to a test-launch plausible, international weapons experts said on Monday.

North Korea has been testing rocket engines and heat-shields for an ICBM while developing the technology to guide a missile after re-entry into the atmosphere following a lift-off, the experts said.

While Pyongyang is close to a test, it is likely to take  some years to perfect the weapon.

Once fully developed, a North Korean ICBM could threaten the continental United States, which is around 9,000 km (5,500 miles) from the North. ICBMs have a minimum range of about 5,500 km (3,400 miles), but some are designed to travel 10,000 km (6,200 miles) or further.

North Korea’s state media regularly threatens the United States with a nuclear strike, but before 2016 Pyongyang had been assumed to be a long way from being capable of doing so.

“The bottom line is Pyongyang is much further along in their missile development than most people realize,” said Melissa Hanham, a senior research associate at the U.S.-based Middlebury Institute of International Studies at Monterey, California.

She said the North’s test in April of a large liquid-fuel engine that could propel an ICBM was a major development.

“The liquid engine test was astounding,” Hanham said.

“For years, we knew that North Korea had a Soviet R-27 missile engine design. They re-engineered the design of that engine to double its propulsion”.

North Korea has said it is capable of mounting a nuclear warhead on a ballistic missile but it claims to be able to miniaturize a nuclear device have never been independently verified.

The isolated nation has achieved this progress despite U.N. Security Council imposed sanctions for its nuclear tests and long-range rocket launches dating back to 2006. The sanctions ban arms trade and money flows that can fund the country’s arms program.

North Korea has enough uranium for six bombs a year and much of what it needs for its nuclear and missile programs relies on Soviet-era design and technology. Labor is virtually free.

It can produce much of its missile parts domestically and invested heavily in its missile development infrastructure last year, funded by small arms sales and by taxing wealthy traders in its unofficial market economy.

PROPAGANDA OFFENSIVE

Throughout the year, North Korean state media showed images of numerous missile component tests, some of which revealed close-up details of engines and heat shields designed to protect a rocket upon re-entry into the earth’s atmosphere.

The propaganda offensive may have revealed some military secrets, but it may have also been a bid to silence outside analysts, many of whom had remained skeptical of the North’s missile program.

“They’re answering the public criticisms of U.S. experts,” said Joshua Pollack, editor of the U.S.-based Non proliferation Review. “A lot of people had questioned whether they had a working ICBM-class heat shield”.

“So they showed us”.

Despite the research, Pyongyang has experienced considerable difficulties getting its intermediate-range Musudan missile, designed to fly about 3,000 km (1,860 miles), off the ground. It succeeded just once in eight attempted launches last year.

North Korea has fired long-range rockets in the past, but has characterized those launches as peaceful and designed to put an object into space.

Still, the South Korean defense ministry believes the three-stage Kwangmyongsong rocket used by Pyongyang to put a satellite in space last February already has a potential range of 12,000 km (7,457 miles), if it were re-engineered.

Doing so would require mastering safer “cold-launch” technology, and perfecting the ability of a rocket to re-enter the earth’s atmosphere without breaking up.

“North Korea is working hard to develop cold-launch technology and atmospheric re-entry but South Korea and the U.S. will have to assess further exactly which level of development they have reached,” South Korean defense ministry official Roh Jae-cheon told a briefing on Monday.

North Korea began stepping up its missile development in March 2016, Roh said, but added that there were no “unusual signs” related to test preparations, according to the South Korean military.

That same month, Kim Jong Un was photographed looking at a small, ball-like object that North Korean state news agency KCNA said was a miniaturized nuclear warhead – the device North Korea would need to fulfill its ICBM threat.

“2016 marked the year North Korea truly ramped up their WMD (Weapons of Mass Destruction) program,” Hanham at the Middlebury Institute of International Studies at Monterey said.

“I think we’re going to see a (ICBM) flight test in 2017”.

(Additional reporting by Jeongeun Lee; Editing by Raju Gopalakrishnan)

Exclusive: CDC considers lowering threshold level for lead exposure

CDC building

By Joshua Schneyer and M.B. Pell

NEW YORK (Reuters) – The U.S. Centers for Disease Control and Prevention is considering lowering its threshold for elevated childhood blood lead levels by 30 percent, a shift that could help health practitioners identify more children afflicted by the heavy metal.

Since 2012, the CDC, which sets public health standards for exposure to lead, has used a blood lead threshold of 5 micrograms per deciliter for children under age 6. While no level of lead exposure is safe for children, those who test at or above that level warrant a public health response, the agency says.

Based on new data from a national health survey, the CDC may lower its reference level to 3.5 micrograms per deciliter in the coming months, according to six people briefed by the agency. The measure will come up for discussion at a CDC meeting January 17 in Atlanta.

But the step, which has been under consideration for months, could prove controversial. One concern: Lowering the threshold could drain sparse resources from the public health response to children who need the most help – those with far higher lead levels.

The CDC did not respond to a request for comment.

Exposure to lead – typically in peeling old paint, tainted water or contaminated soil – can cause cognitive impairment and other irreversible health impacts.

The CDC adjusts its threshold periodically as nationwide average levels drop. The threshold value is meant to identify children whose blood lead levels put them among the 2.5 percent of those with the heaviest exposure.

“Lead has no biological function in the body, and so the less there is of it in the body the better,” Bernard M Y Cheung, a University of Hong Kong professor who studies lead data, told Reuters. “The revision in the blood lead reference level is to push local governments to tighten the regulations on lead in the environment.”

The federal agency is talking with state health officials, laboratory operators, medical device makers and public housing authorities about how and when to implement a new threshold.

Since lead was banned in paint and phased out of gasoline nearly 40 years ago, average childhood blood lead levels have fallen more than 90 percent. The average is now around 1 microgram per deciliter.

Yet progress has been uneven, and lead poisoning remains an urgent problem in many U.S. communities.

A Reuters investigation published this month found nearly 3,000 areas with recently recorded lead poisoning rates of at least 10 percent, or double those in Flint, Michigan, during that city’s water crisis. More than 1,100 of these communities had a rate of elevated blood tests at least four times higher than in Flint.

In the worst-affected urban areas, up to 50 percent of children tested in recent years had elevated lead levels.

The CDC has estimated that as many as 500,000 U.S. children have lead levels at or above the current threshold. The agency encourages “case management” for these children, which is often carried out by state or local health departments and can involve educating families about lead safety, ordering more blood tests, home inspections or remediation.

Any change in the threshold level carries financial implications. The CDC budget for assisting states with lead safety programs this year was just $17 million, and many state or local health departments are understaffed to treat children who test high.

Another concern: Many lead testing devices or labs currently have trouble identifying blood lead levels in the 3 micrograms per deciliter range. Test results can have margins of error.

“You could get false positives and false negatives,” said Rad Cunningham, an epidemiologist with the Washington State Department of Health. “It’s just not very sensitive in that range.”

The CDC doesn’t hold regulatory power, leaving states to make their own decisions on how to proceed. Many have yet to adapt their lead poisoning prevention programs to the last reference change, implemented four years ago, when the level dropped from 10 to 5 micrograms per deciliter. Other states, including Virginia and Maine, made changes this year.

The U.S. Department of Housing and Urban Development is close to adopting a rule requiring an environmental inspection – and lead cleanup if hazards are found – in any public housing units where a young child tests at or above the CDC threshold.

If the CDC urges public health action under a new threshold, HUD said it will follow through. “The only thing that will affect our policy is the CDC recommendation for environmental intervention,” said Dr. Warren Friedman, with HUD’s Office of Lead Hazard Control and Healthy Homes.

To set the reference value, the CDC relies upon data from the National Health and Nutrition Survey. The latest data suggests that a small child with a blood lead level of 3.5 micrograms per deciliter has higher exposure than 97.5 percent of others in the age group, 1 to 5 years.

But in lead-poisoning hotspots, a far greater portion of children have higher lead levels. Wisconsin data, for instance, shows that around 10 percent of children tested in Milwaukee’s most poisoned census tracts had levels double the current CDC standard.

Some worry a lower threshold could produce the opposite effect sought, by diverting money and attention away from children with the worst exposure.

“A lower reference level may actually do harm by masking reality – that significant levels of lead exposure are still a problem throughout the country,” said Amy Winslow, chief executive of Magellan Diagnostics, whose blood lead testing machines are used in thousands of U.S. clinics.

(Edited by Ronnie Greene)

Small plane with six aboard vanishes over Lake Erie in Ohio

By Kim Palmer

CLEVELAND (Reuters) – Rescue crews searched Lake Erie on Friday for signs of a twin-engine plane carrying six people that went missing on Thursday night soon after taking off from an Ohio airport, officials said.

The 11-seat aircraft dropped off radar just before 11 p.m. local time after leaving Burke Lakefront Airport on the shore of Lake Erie north of downtown Cleveland, U.S. Coast Guard Chief of Response Michael Mullen told a news conference on Friday.

The Cessna Citation 525, bound for Ohio State University Airport, disappeared after flying about two miles over the lake, Mullen said.

John Fleming, 46, the chief executive of Columbus-based beverage distributor Superior Beverage Group, is believed to have been piloting the plane, the Columbus Dispatch reported.

Also on board were Fleming’s wife, their two teenage sons and two of their neighbors, the newspaper reported, citing an interview with Fleming’s father, John W. Fleming.

The group was returning to Columbus after attending the Cleveland Cavaliers basketball game against the Boston Celtics, the Dispatch reported.

ROUGH GOING

Mullen said a watercraft search for survivors had been halted on Thursday night due to 12 to 14 foot seas, but it resumed on Friday morning.

Lake Erie is the fourth-largest by surface area of North America’s five Great Lakes, and also the most shallow. It is 210 feet at its deepest point, which makes for rough and unpredictable waters.

“The seas have subsided a little bit,” Mullen said. “We also have better daylight at this particular time and better visibility.”

Coast guard crews searched with boats, a helicopter and fixed-wing plane over a section of Lake Erie that is about 50 feet deep, Mullen said, adding that there were no signs of debris.

He said there was no evidence of an emergency call before communications with the aircraft stopped. He declined to identify the people on board.

The water temperature was around 35 degrees F, according to the National Weather Service.

Asked about the chances of survival considering the water temperature and high seas, Mullen said “it comes down to a person’s will to survive.”

(Reporting by Kim Palmer; Additional reporting by Laila Kearney in New York; Editing by Bernadette Baum, Toni Reinhold)