FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, AUGUST 7, 1998


Advance copies of this statement are made available to the 
press under lock-up conditions with the explicit 
understanding that the data are embargoed until 8:30 a.m. 
Eastern Daylight Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

before the

Joint Economic Committee

UNITED STATES CONGRESS

Friday, August 7, 1998




Mr. Chairman and Members of the Committee:
	I would like to thank you for this opportunity to 
comment on the employment and unemployment data that were 
released this morning.
	The unemployment rate was unchanged at 4.5 percent in 
July.  Total nonfarm job growth was just 66,000, following a 
gain of 196,000 in the prior month.  Strikes at two plants 
led to shutdowns and layoffs affecting workers in several 
auto-related industries.
	Manufacturing employment, which declined by 176,000 
over the month, was heavily affected by the strikes and 
resulting plant shutdowns.  Auto manufacturing, with a drop 
of 111,000 jobs, was hardest hit.  There also were 
noteworthy losses in fabricated metals due to the idling of 
automobile stamping plants.  Primary metals, industrial 
machinery, rubber and plastics, and apparel (which includes 
auto trimmings) all posted declines as production lines in 
plants that supply the auto industry were shut down.  Not 
all the over-the-month movements in manufacturing employment 
were auto-related.  The electronic components and food 
products industries lost jobs, while the aircraft industry 
and printing and publishing added workers.  Employment in 
textile mills continued its slow, long-term decline.  The 
factory work week dipped by 0.1 hour to 41.7 hours.
	Construction added 18,000 jobs, with gains spread 
through the component industries.  Since construction 
employment bottomed out in July of 1992, it has grown at an 
average annual rate of about 5 percent, twice the pace of 
overall employment growth.
	In the service-producing sector, employment in retail 
trade jumped by 125,000.  Eating and drinking places, with a 
gain of 69,000 jobs, accounted for more than half of the 
increase.  Even so, growth in the retail sector was 
widespread.  Employment in food stores grew strongly and 
miscellaneous retail establishments had its second large 
gain in three months.  Building materials and garden supply 
stores continued to add workers, as did furniture stores.
	After two months of large job gains, services grew by 
only 65,000 jobs in July.  The sluggish growth was due 
largely to a decline of 33,000 jobs in help supply, some 
share of which was a secondary effect of the auto industry 
strike.  Health services employment did not grow, as home 
health care and nursing homes both reduced employment.  In 
contrast, engineering and management services and computer 
services both continued strong long-term growth trends.  
Amusement and recreation services and hotels also added 
jobs.
	Finance, insurance, and real estate added 32,000 jobs 
in July.  Employment growth in finance--18,000 in July--has 
been slowly accelerating for nearly 3 years.  The insurance 
industry added 8,000 jobs over the month, about in line with 
its second quarter pace.  Real estate employment also grew, 
following two sluggish months.
	Employment in government edged down for the second 
straight month, after a large increase in May.  The decline 
was due mostly to losses in local government, except 
education.
	Average hourly earnings of production or nonsupervisory 
workers rose by 3 cents for the third straight month.  This 
is somewhat slower than the average monthly increase of 5 
cents through the first four months of the year.  
	Turning to data from the household survey, the 
unemployment rate held steady at 4.5 percent in July.  Among 
the major demographic groups, the jobless rate for adult 
black men rose to 8.9 percent.  An increase in black teenage 
unemployment largely reversed a drop in the previous month. 
Reflecting strike-related plant shutdowns, the unemployment 
rate for durable goods manufacturing climbed from 2.9 
percent to 4.3 percent and the number of unemployed job 
losers on temporary layoff grew.  
To summarize, job growth in July fell below its recent 
pace, due mostly to secondary effects of strike activity.  
The unemployment rate was unchanged at 4.5 percent.

My colleagues and I now would be glad to answer your 
questions.

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