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Statement of
William W. Beach
Commissioner
Bureau of Labor Statistics
Friday, January 10, 2020
Nonfarm payroll employment rose by 145,000 in December,
and the unemployment rate was unchanged at 3.5 percent. Notable
employment gains occurred in retail trade and health care, while
mining lost jobs. In 2019, payroll employment growth totaled 2.1
million, compared with a gain of 2.7 million in 2018.
Incorporating revisions for October and November, which
decreased payrolls by 14,000, monthly job gains averaged 184,000
over the past 3 months.
In December, employment in retail trade increased by
41,000, with job gains in clothing and accessories stores
(+33,000) and in building material and garden supply stores
(+7,000). For both industries, the December increase followed a
decline in November. In 2019, retail trade employment changed
little on net (+9,000), the second year of little employment
change in the industry.
Health care added 28,000 jobs in December. Over the month,
employment rose in ambulatory care services (+23,000) and
hospitals (+9,000). In 2019, health care employment rose by
399,000, following an increase of 350,000 in 2018.
In December, employment in leisure and hospitality
continued to trend up (+40,000). In 2019, the industry added
388,000 jobs, after a similar gain in the prior year (+359,000).
Much of the job growth over the last 2 years occurred in food
services and drinking places.
Mining employment fell by 8,000 in December and declined by
24,000 in 2019. In 2018, the industry added 63,000 jobs.
Construction employment changed little in December
(+20,000). Over the year, the industry gained 151,000 jobs,
about half of the increase in 2018 (+307,000).
Employment in professional and business services showed
little change in December (+10,000), following a gain of 53,000
in November. In 2019, employment growth in this industry totaled
397,000, down from the gain of 561,000 in 2018.
Employment in transportation and warehousing changed little
in December (-10,000). The industry added 57,000 jobs in 2019,
about one-fourth of the gain in 2018 (+216,000).
Manufacturing employment was little changed in December
(-12,000). Within durable goods manufacturing, fabricated metal
products lost 7,000 jobs. In 2019, manufacturing employment
changed little (+46,000), after increasing by 264,000 in 2018.
Employment in other major industries--including wholesale
trade, information, financial activities, and government--also
showed little change over the month.
Average hourly earnings of all employees on private nonfarm
payrolls rose by 3 cents in December to $28.32, following a gain
of 9 cents in November. Over the past 12 months, average hourly
earnings have risen by 2.9 percent. From November 2018 to
November 2019, the Consumer Price Index for All Urban Consumers
(CPI-U) increased by 2.0 percent (on a seasonally adjusted
basis).
In December, the major labor market indicators from the
survey of households continued to show little or no change. Both
the unemployment rate, at 3.5 percent, and the number of
unemployed people, at 5.8 million, were unchanged over the
month. A year earlier, the jobless rate was 3.9 percent, and the
number of unemployed people was 6.3 million.
Among the unemployed, the number of people searching for
work for 27 weeks or more was unchanged at 1.2 million in
December. These long-term unemployed accounted for 20.5 percent
of the unemployed.
The labor force participation rate remained at 63.2 percent
in December. The employment-population ratio was 61.0 percent
for the fourth month in a row.
In December, 4.1 million people were working part time for
economic reasons (also referred to as involuntary part-time
workers), little changed from the previous month but down by
507,000 over the year.
Among those neither working nor looking for work in
December, 1.2 million were considered marginally attached to the
labor force, down by 310,000 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.) Discouraged workers, a subset of the marginally
attached who believed no jobs were available for them, numbered
277,000 in December, down by 98,000 from a year earlier.
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 2015--were subject to revision.
In summary, nonfarm payroll employment rose by 145,000 in
December, and the unemployment rate remained at 3.5 percent.