FOR DELIVERY: 9:30 A.M., E.D.T. FRIDAY, OCTOBER 8, 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, October 8, 1999 Good morning. I am pleased to have this opportunity to discuss the September employment and unemployment estimates that we released this morning. The unemployment rate was unchanged in September at 4.2 percent; it has been either 4.2 or 4.3 percent each month since March. Nonfarm payroll employment, as measured by our establishment survey, was essentially unchanged in September. Employment in some areas and industries was held down by Hurricane Floyd, but employment growth was weak even in those areas and industries largely unaffected by the hurricane. In the goods-producing sector, employment in construction rose by 21,000 in September, nearly offsetting the loss in the prior month. Manufacturing employment declined by 21,000 in September. The average monthly loss of factory jobs in the third quarter (-15,000) was considerably less than the average loss in the first half of the year (-36,000). Employment declined over the month in rubber and plastics products (-7,000), industrial machinery (-6,000), aircraft (-6,000), apparel (-5,000), primary metals (-4,000), and textiles (-3,000). Motor vehicle employment also declined in September, but was up for the quarter, and electrical equipment was up in September as well as for the quarter. A large increase in food processing employment in September only partly reversed an August decline. The factory workweek and factory overtime were unchanged in September, at 41.8 and 4.7 hours, respectively. There was no net job growth in the service-producing sector (after seasonal adjustment). The services industry added only 39,000 jobs in September, well below the average monthly gain of 126,000 for the prior 12 months. Business services employment was up slightly in September, as continued strength in computer and data processing services was partly offset by a hurricane-related decline in help supply services. (In the establishment survey, persons who are on unpaid absence from work for the entire reference period are not counted as employed.) Job growth in health services was a modest 8,000 in September, with hospitals contributing much of the increase. Engineering and management services continued to add jobs, but the increase of 8,000 was less than half its monthly average for the prior 12 months. On the other hand, above-average gains occurred in motion pictures and educational services. Amusements and recreation lost 15,000 jobs, nearly reversing the advance of the prior month; some of September’s job loss likely was due to Hurricane Floyd. Retail trade employment declined by 49,000 in September. Employment declines in eating and drinking places, and in other types of retail establishments, resulted in part from business closings related to Hurricane Floyd. Department stores lost 17,000 jobs, the fifth consecutive loss. Automobile dealers and furniture stores added 2,000 and 3,000 jobs, respectively, in September, increases that were below their average monthly gains for the year. Wholesale trade added 7,000 jobs in September, compared with an average monthly gain of 17,000 this year through August. Employment in durable goods distribution failed to grow for the first time in over 6 years. Finance employment decreased for the first time in over 4 years, due to a decline in its mortgage banking component. Employment in both insurance and real estate was little changed. Transportation and public utilities added 20,000 jobs in September. Nearly all of the gain was in trucking and air transportation. State and local government employment edged down in September, following large gains in August. Average hourly earnings of private production or nonsupervisory workers rose by 7 cents in September to $13.37, following a rise of 2 cents in August. Over the year, average hourly earnings have risen by 3.8 percent. Turning now to the data from our survey of households, the unemployment rate was unchanged in September at 4.2 percent and has remained under 4.4 percent since March. The rates for most of the major demographic groups (adult men, adult women, whites, blacks, and Hispanics) have been fairly stable in recent months, although the rate for teenagers has ticked upward. Civilian employment changed little over the month, and the employment-population ratio remained at 64.1 percent. The number of persons who held more than one job in September totaled 7.6 million (not seasonally adjusted). These multiple jobholders made up 5.7 percent of the total employed, down slightly from 6.0 percent a year earlier. In summary, employment was essentially unchanged over the month, and the unemployment rate remained at 4.2 percent. My colleagues and I now would be glad to answer your questions. 3 5