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Statement of
William J. Wiatrowski
Acting Commissioner
Bureau of Labor Statistics
Friday, January 5, 2018
Nonfarm payroll employment rose by 148,000 in December, and
the unemployment rate was unchanged at 4.1 percent. Employment
increased in health care, construction, and manufacturing. Job
growth totaled 2.1 million in 2017, compared with a gain of 2.2
million in 2016.
Incorporating revisions for October and November, which
decreased nonfarm payroll employment by 9,000 on net, monthly
job gains have averaged 204,000 over the past 3 months.
In December, employment in health care increased by 31,000.
Over the month, employment continued to trend up in ambulatory
health care services (+15,000) and hospitals (+12,000). In 2017,
health care added 300,000 jobs, less than the increase of
379,000 jobs in 2016.
Construction added 30,000 jobs in December. Specialty trade
contractors accounted for most of the gain (+24,000).
Construction employment rose by 210,000 in 2017, compared with
its 2016 gain of 155,000.
Manufacturing added 25,000 jobs in December. Within the
industry, employment grew in machinery (+6,000), fabricated
metal products (+5,000), primary metals (+3,000), and
semiconductors and electronic components (+2,000). In 2017,
factory employment increased by 196,000, following little change
in 2016.
Employment in food services and drinking places changed
little in December (+25,000). Over the year, the industry has
added 249,000 jobs, about in line with a gain of 276,000 in
2016.
Employment in professional and business services was little
changed in December (+19,000). In 2017, this industry added
527,000 jobs, in line with its 2016 gain.
Employment in retail trade was also little changed in
December (-20,000). Within the industry, employment declined by
27,000 in general merchandise stores. Employment in retail trade
edged down in 2017 (-67,000), following a gain of 203,000 in
2016.
Employment in other major industries--mining, wholesale
trade, transportation and warehousing, information, financial
activities, and government--changed little in December.
Average hourly earnings of all employees on private nonfarm
payrolls increased by 9 cents in December to $26.63. Over the
past 12 months, average hourly earnings have risen by 2.5
percent. From November 2016 to November 2017, the Consumer Price
Index for All Urban Consumers (CPI-U) increased by 2.2 percent
(on a seasonally adjusted basis).
The major labor market indicators from the survey of
households showed little or no change in December. The
unemployment rate was 4.1 percent for the third month in a row,
following declines earlier in the year. The number of unemployed
people, at 6.6 million, was essentially unchanged over the month
but was down by 926,000 over the year.
Among the unemployed in December, 1.5 million had been
searching for work for 27 weeks or longer. These long-term
unemployed accounted for 22.9 percent of the total unemployed.
The labor force participation rate, at 62.7 percent, was
unchanged over the month and over the year. The employment-
population ratio was unchanged at 60.1 percent in December but
was up by 0.3 percentage point over the year.
The number of people working part time for economic
reasons, also referred to as involuntary part-time workers, was
essentially unchanged at 4.9 million in December. Over the past
year, the number of involuntary part-time workers declined by
639,000.
Among those neither working nor looking for work in
December, 1.6 million were marginally attached to the labor
force, little different from a year earlier. Discouraged
workers, a subset of the marginally attached who believed that
no jobs were available for them, numbered 474,000 in December,
also little changed from a year earlier. (People who are
marginally attached to the labor force had not looked for work
in the 4 weeks prior to the survey but wanted a job, were
available for work, and had looked for a job within the last 12
months.)
Following our regular annual practice, seasonal adjustment
factors for the household survey data have been updated with the
release of December data. Seasonally adjusted estimates going
back 5 years--to January 2013--were subject to revision.
In summary, nonfarm payroll employment rose by 148,000 in
December, and the unemployment rate remained at 4.1 percent.