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Statement of
Erica L. Groshen
Commissioner
Bureau of Labor Statistics
Friday, September 5, 2014
Nonfarm payroll employment rose by 142,000 in August, and
the unemployment rate was little changed at 6.1 percent.
Employment rose in professional and business services and in
health care.
Incorporating the revisions for June and July, which
reduced total nonfarm employment by 28,000 on net, monthly job
gains have averaged 207,000 over the past 3 months. In the 12
months prior to August, employment growth averaged 212,000 per
month.
Professional and business services added 47,000 jobs in
August. Within this industry, employment in management of
companies and enterprises increased by 8,000 over the month.
Employment continued to trend up in administrative and support
services (+23,000), architectural and engineering services
(+3,000), and in management and technical consulting services
(+3,000). Over the year, employment in professional and business
services has expanded by 639,000.
Health care employment grew by 34,000 in August with job
gains in offices of physicians (+8,000) and in hospitals
(+7,000). Over the past 12 months, employment in health care has
risen by 233,000.
Employment in food services and drinking places continued
to trend up in August (+22,000) and is up by 289,000 over the
year.
Construction employment also continued on an upward trend
in August (+20,000). This is in line with its average monthly
job gain of 18,000 over the prior 12 months.
Manufacturing employment was unchanged in August, following
an increase of 28,000 in July. Employment in motor vehicles and
parts manufacturing was down by 5,000 over the month after
increasing by 13,000 in July. Firms in this industry laid off
fewer workers than usual for factory retooling in July and
recalled fewer workers than usual in August. This contributed to
a seasonally adjusted increase in July and decrease in August.
Employment growth in motor vehicles and parts manufacturing
averaged 4,000 over the past 2 months, the same as its average
monthly gain for the 12 months prior to July.
Retail trade employment was little changed in August
(-8,000). Within retail, employment declined in food and
beverage stores (-17,000); this industry was impacted by
employment disruptions at a grocery store chain in New England.
Elsewhere in retail, employment increased in auto dealerships
(+5,000).
Employment in other major industries showed little change
over the month.
Average hourly earnings of all employees on private nonfarm
payrolls rose by 6 cents to $24.53 in August. Over the 12 months
ending in August, average hourly earnings grew by 2.1 percent.
From July 2013 to July 2014, the Consumer Price Index for All
Urban Consumers (CPI-U) increased by 2.0 percent.
Turning to measures from the survey of households, the
unemployment rate was little changed in August, at 6.1 percent,
but is down by 1.1 percentage points over the year.
In August, there were 9.6 million unemployed persons,
little different from July. The number of long-term unemployed
(those unemployed 27 weeks or more) declined by 192,000 over the
month. The total number of unemployed has fallen by 1.7 million
over the year, with about three-fourths of this decline among
the long-term unemployed.
The labor force participation rate, at 62.8 percent, was
little changed in August and has been essentially unchanged
since April.
In August, the employment-population ratio was 59.0 percent
for the third consecutive month. Over the year, however, the
employment-population ratio is up by 0.4 percentage point.
Among the employed, the number of people working part time
for economic reasons was little changed at 7.3 million in
August. (These individuals, also referred to as involuntary
part-time workers, would have preferred full-time employment,
but had their hours cut or were unable to find full-time work.)
Among people who were neither working nor looking for work
in August, 2.1 million were classified as marginally attached to
the labor force, down by 201,000 over the year. (These
individuals 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.) The number of discouraged
workers, a subset of the marginally attached who believed that
no jobs were available for them, was 775,000 in August, little
changed over the year.
In summary, nonfarm payroll employment rose by 142,000 in
August, and the unemployment rate was little changed at 6.1
percent.