FOR DELIVERY: 9:30 A.M., E.S.T. FRIDAY, DECEMBER 5, 1997 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 Standard Time. Statement of Katharine G. Abraham Commissioner Bureau of Labor Statistics Friday, December 5, 1997 Good morning. I am pleased to have this opportunity to comment on the employment and unemployment data that we released this morning. Employment rose sharply in November, and the unemployment rate was little changed at 4.6 percent. The number of payroll jobs as measured by our establishment survey grew by 404,000 over the month. Gains were widespread in the private sector with especially large increases occurring in services, retail trade, and manufacturing. In the goods-producing sector, construction employment rose by 29,000, despite unusually cold weather during the November survey period. Manufacturing added 44,000 jobs, the third month out of the last four in which it has had a large increase. More than 200,000 manufacturing jobs have been added since the industry’s last employment trough in September 1996. Electronic components, industrial machinery, and aircraft and parts contributed the most to this increase, and continued to add jobs in November. Over-the-month increases also were registered in auto manufacturing, food processing, and printing and publishing. Services industry employment rose by 180,000; close to a third of this increase was in help supply services. Two relatively small industries continued their rapid expansion: engineering and management services grew by 15,000 jobs, and computer and data processing services added 13,000 jobs. Elsewhere, health services added 21,000 jobs, largely in doctors’ offices and hospitals. Employment in amusement and recreation services showed its first large increase since July. Retail employment grew by 105,000 as strong holiday hiring boosted employment in department stores and in miscellaneous retail establishments, which include gift shops, book stores, and catalogue sales, among other types of retailers. Eating and drinking places had its first large increase since July. Furniture and home furnishing stores also contributed to the retail employment rise, as did auto dealers and service stations. In other industries, wholesale trade added 24,000 jobs, mostly in durable goods. This was the second straight month of stronger-than-average wholesale trade employment gains, mirroring strength in manufacturing. Finance, insurance, and real estate payrolls added 19,000 jobs. Gains in finance continued to outpace those in the other two components of this grouping. Employment in government was little changed overall. A decline of 12,000 in Federal nonpostal employment followed an unusual increase (on a seasonally adjusted basis) of about the same magnitude in October. Average hourly earnings of production or nonsupervisory workers posted a 7-cent increase in November. Over the last 3 months, average hourly earnings have grown by 16 cents. Over the year, hourly earnings have increased by 4.1 percent. Average weekly hours grew by 0.3 hour in November to 34.8 hours. Turning to data from the household survey, the unemployment rate was little changed over the month at 4.6 percent. It had been 4.7 percent in October, and 4.9 percent in September. The unemployment rate for adult men declined to 3.8 percent in November, and the rates for whites and Hispanics also fell. The rate for adult women, which had fallen from 4.4 percent in September to 4.0 percent in October, was unchanged in November. Civilian employment, which had barely risen between May and October, jumped by 671,000 in November to 130.6 million. The employment-to-population ratio, the percent of the population that is employed, rose to a record 64.0 percent. In summary, employment rose sharply in November, with gains that were widespread across most of the private sector. Hourly earnings continued to increase. The unemployment rate, at 4.6 percent, was at the lowest level in nearly a quarter of a century. My colleagues and I now would be glad to respond to your questions. 4