FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, SEPTEMBER 3, 1999


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 Daylight Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

Friday, September 3, 1999



Good morning.  I am pleased to have this opportunity to 
discuss the August employment and unemployment estimates 
that we released this morning.
The unemployment rate, at 4.2 percent in August, was 
little changed over the month, and has been either 4.2 or 
4.3 percent each month since March.  Nonfarm payroll 
employment, as measured by our establishment survey, rose a 
modest 124,000 in August, following a strong increase of 
338,000 in July.  Over these 2 months, job growth averaged 
231,000, compared with an average monthly increase of 
210,000 for the first half of 1999. 
In August, job losses in the goods-producing sector of 
the economy totaled 95,000.  Manufacturing employment 
declined by 63,000 (after seasonal adjustment).  This 
followed an increase of 51,000 in July, as revised.  The 
August loss would have been 7,000 larger if not for the 
return of workers to the shipbuilding industry following the 
settlement of a strike that began several months earlier.  
Although manufacturing employment fell by 19,000 between 
June and August, after accounting for the strike return, the 
pace of manufacturing jobs losses has been much slower over 
the past 2 months than during the first half of the year. In 
durable goods, substantial August employment declines in 
several industries reversed or partially reversed July 
employment gains.  Industrial machinery, fabricated metals, 
instruments and related products, and stone, clay, and glass 
products experienced net employment losses over the 2 months 
(although only the loss in industrial  machinery was 
substantial).  Among the industries showing net employment 
gains over the period were motor vehicles, electrical 
equipment, furniture, and primary metals.  In nondurable 
goods, employment declines continued in apparel and 
textiles.
The factory workweek edged down in August to 41.7 
hours, returning to its June level.  Factory overtime also 
edged down in August, to 4.6 hours.
Employment in construction declined by 29,000 in 
August, largely offsetting the gains of the prior 2 months.  
Mining employment fell, following an increase in July.  
Within mining, however, oil and gas extraction posted its 
second consecutive monthly gain.
In the service-producing sector, job growth of 219,000 
(after seasonal adjustment) was slightly below the monthly 
average of the prior 12 months (247,000).  In the services 
industry, the recent pattern of alternating weak and strong 
job growth continued in August.  The industry added 132,000 
jobs over the month, well above the gain of 78,000 in July.  
In August, business services employment expanded by 46,000, 
with computer and data processing services accounting for a 
third of the increase.  Following no growth in July, 
employment in amusement and recreation services rose by 
17,000, after seasonal adjustment.  Job growth in health 
services totaled 19,000 in August, with the largest gains 
coming in doctors’ offices and in hospitals.  Strong 
employment increases in both social and legal services more 
than offset declines in July.  Job growth continued in 
engineering and management services, but the increase of 
10,000 was only half its recent monthly average.
Retail trade employment was about unchanged in August.  
An employment decline of 38,000 in eating and drinking 
places followed a large gain of 74,000 in July.  Elsewhere 
in retail trade, employment in food stores was up 11,000 
over the month, but the industry has had virtually no net 
job growth in 2 years.  Automobile dealers and furniture 
stores each added 8,000 jobs in August, employment in 
general merchandise stores was up only slightly, and 
employment in apparel stores was down.
Elsewhere in the services-producing sector, employment 
in finance, insurance, and real estate rose by 11,000.   
Finance employment increased by 8,000 over the month, with 
strong job growth continuing in securities brokerages.  
Employment growth in both insurance and real estate was 
somewhat sluggish.
Transportation job growth slowed in August, and 
substantial employment gains continued in wholesale trade. 
Government added 47,000 workers, after seasonal adjustment, 
mostly in state and local education. 
Average hourly earnings of private production or 
nonsupervisory workers edged up 2 cents in August to $13.30, 
following a rise of 10 cents over the prior 2 months.  Over 
the year, average hourly earnings have risen by 3.5 percent.
	Turning now to the data from our survey of households, 
the unemployment rate was little changed at 4.2 percent in 
August and has remained under 4.4 percent since March.  
Following a 1-1/2 percentage point rise in July, the rate 
for blacks fell back a point to 7.8 percent in August.  The 
rate for adult women fell to 3.7 percent.  The rates for the 
other major demographic groups were either unchanged or 
little changed from July.  
Civilian employment was about unchanged over the month, 
and the employment-population ratio held steady at 64.1 
percent.  The number of persons who held more than one job 
in August totaled 7.3 million (not seasonally adjusted).  
These multiple jobholders made up 5.4 percent of the total 
employed, down slightly from 5.6 percent a year earlier.
In summary, payroll employment rose by 124,000 over the 
month, and the unemployment rate was little changed at 4.2 
percent.

	My colleagues and I now would be glad to answer your 
questions.

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