Wages, jobs show solid, steady gains

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Wages rose by the most since 2001 and jobs posted solid gains last month, offering some relief for financially strapped consumers faced with climbing costs for energy, housing and other needs.

The Labor Department yesterday reported a 243,000 increase in jobs in a wide range of professions from health care and construction to finance and education -- the latest in a string of gains since November that have drawn the unemployment rate down sharply to 4.8 percent.

The growth in jobs last month was so strong it enticed 335,000 new job seekers into the market, causing the jobless rate to tick up from 4.7 percent -- the 41/2-year low reached in January.

"The economy is generating plenty of jobs -- that's good news," said Bernard Baumohl, executive director of the Economic Outlook Group, noting that last month was one of the best months for jobs since 2004.

The 3.5 percent gain in average wages over the past year is particularly welcome for overstretched consumers who have maxed out on debt and are nearing the end of their rope coping with higher costs for essential items.

But, unfortunately, Mr. Baumohl said, the wage increase was just enough to cover inflation, leaving workers with no real increase in purchasing power.

"This certainly should not be construed as a breakout in wages," he said.

President Bush trumpeted the job news, which pointed to robust economic growth in the first quarter and helped send the Dow Jones Industrial Average up 104 points to 11,076.

"American workers are defying the pessimists," Mr. Bush declared. "Our economy is strong."

The report was the latest to suggest a substantial strengthening in the job market that is giving workers some bargaining power for higher wages and a wider selection of jobs than seen since the 1990s.