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Statement of
Erica L. Groshen
Commissioner
Bureau of Labor Statistics
Friday, August 5, 2016
Nonfarm payroll employment rose by 255,000 in July, and the
unemployment rate was unchanged at 4.9 percent. Job gains
occurred in professional and business services, health care, and
financial activities. Employment in mining continued to trend
down.
Incorporating revisions for May and June, which increased
nonfarm payroll employment by 18,000, monthly job gains have
averaged 190,000 over the past 3 months. In the 12 months prior
to July, employment growth averaged 206,000 per month.
Employment in professional and business services rose by
70,000 in July, and has risen by 550,000 over the year. Within
the industry, job gains occurred over the month in computer
systems design and related services (+8,000) and architectural
and engineering services (+7,000). Employment also continued to
trend up in management and technical consulting services
(+6,000).
Health care added 43,000 jobs in July, with gains in
ambulatory health care services (+19,000), hospitals (+17,000),
and nursing and residential care facilities (+7,000). Over the
past 12 months, health care employment has grown by 477,000.
Employment in financial activities rose by 18,000 in July.
Over the year, this industry has added 162,000 jobs.
Leisure and hospitality employment continued to trend up in
July (+45,000). Within the industry, employment in food services
and drinking places changed little (+21,000). Thus far this
year, food services has added an average of 18,000 jobs per
month, compared with an average of 30,000 per month in 2015.
Employment in government edged up in July (+38,000).
Mining employment continued to trend down in July (-6,000),
and has declined by 220,000 since its recent peak in September
2014. Three-fourths of the job losses since the peak have been
in support activities for mining.
Average hourly earnings of all employees on private nonfarm
payrolls increased by 8 cents in July to $25.69. Over the past
12 months, average hourly earnings have risen by 2.6 percent.
From June 2015 to June 2016, the Consumer Price Index for All
Urban Consumers (CPI-U) increased by 1.1 percent (on a
seasonally adjusted basis).
Most major labor market measures from the survey of
households showed little or no movement in July. The
unemployment rate held at 4.9 percent, and the number of
unemployed people, at 7.8 million, was essentially unchanged
over the month. Both measures have shown little movement on net
since August.
Among the unemployed in July, 2.0 million, or 27 percent of
the total, were long-term unemployed--that is, they had been
looking for work for 27 weeks or more. Long-term unemployment
has shown little movement on net over the past 13 months.
The labor force participation rate was 62.8 percent in
July, and the employment-population ratio was 59.7 percent. Both
measures have shown little change in recent months.
Among those employed in July, 5.9 million were working part
time for economic reasons, little changed from the prior month.
(These individuals, also referred to as involuntary part-time
workers, would have preferred full-time employment but were
working part time because their hours had been cut back or
because they were unable to find full-time work.)
Among people who were neither working nor looking for work
in July, 2.0 million were marginally attached to the labor
force, about the same as a year earlier. Discouraged workers, a
subset of the marginally attached who believed that no jobs were
available for them, numbered 591,000 in July, also about the
same as a year earlier. (Marginally attached to the labor force
refers to those who 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.)
In summary, nonfarm payroll employment rose by 255,000 in
July, and the unemployment rate was unchanged at 4.9 percent.