The 4,749,000 Problem

Unemployment, the No. 1 U.S. economic problem, is still failing to react to the gains in the rest of the economy. So the latest figures from the Commerce and Labor departments showed last week. The jobless in February rose 25,000, to 4,749,000, while employment also increased 16,000, to 62,722,000. The rate of unemployment, seasonally adjusted, rose from 6% of the labor force, where it has stood so far this year, to 6.1%. Ordinarily, so small a change would be discounted; it could be a statistical error. What worried economists was the failure of employment to chalk up the seasonal rise that usually comes in February. Nonetheless, Administration economists expect the employment and unemployment picture to improve slowly, simply because in almost every other area the U.S. economy is showing signs of increased vigor. Items:

P: The stock market rolled upward to new highs to end the week at an alltime record of 614.69 on the Dow-Jones Industrials average.

P: Output of steel rose to a historic high of 2,556,000 tons as the industry operated at 90.3% of capacity, highest since April 1957, when capacity was smaller.

P: Auto production slowed 2%, but last week's production schedule of 131,096 cars was 52% higher than the same week a year ago. So far in 1959, auto production is running 23% ahead of 1958, but there are signs of further slowing. Buick, Chevrolet and Mercury trimmed plans.

P: Department store sales across the nation rose 5% above a year ago.

P: Commercial loans, which have been running slower than expected, rose $46 million, to $29 billion in early March, $8,000,000 above the year-earlier total.

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