FOR DELIVERY: 9:30 A.M., E.S.T. FRIDAY, DECEMBER 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 Standard Time. Statement of Katharine G. Abraham Commissioner Bureau of Labor Statistics Friday, December 3, 1999 Good morning. I am pleased to have this opportunity to discuss the November employment and unemployment estimates that the Bureau of Labor Statistics released this morning. The unemployment rate, as measured by our household survey, was unchanged at 4.1 percent in November and has been below 4.3 percent since August. Nonfarm payroll employment, as measured by our establishment survey, rose by 234,000 in November, in line with average monthly growth for the prior 12 months. In November, employment in the services industry rose by 120,000, following an above-average increase of 172,000 in October. Business services again accounted for a large proportion of the over-the-month increase. Employment in computer and data processing services continued to rise, although the pace of job growth has slowed in recent months. Elsewhere in the services industry, employment in social services expanded by 25,000, and health services added 14,000 jobs. Aided by unseasonably warm weather during the survey reference period, the number of jobs in agricultural services rose by 10,000 in November (seasonally adjusted), the largest gain this year. Employment in engineering and management services rose by 9,000 in November, less than half the average monthly gain over the prior 12 months. Elsewhere in the service-producing sector, November job growth totaled 15,000 in transportation, 8,000 in finance, insurance, and real estate, and 6,000 in wholesale trade. Employment in retail trade was about unchanged, as a gain in eating and drinking places offset declines in miscellaneous retail, apparel, and furniture stores. Government employment rose by 31,000, with the November gain concentrated in State education and local governments. In the goods-producing sector of the economy, the number of construction jobs rose by 55,000 in November (on a seasonally adjusted basis), following an increase of 20,000 in October. The November increase in construction may have been boosted somewhat by the unseasonably warm, dry weather. Over the past year, job gains in construction have totaled 283,000. The number of factory jobs was little changed in November. Job losses in manufacturing have eased in recent months. Since June, job declines have averaged 9,000 per month, compared to average monthly job losses of 36,000 during the first half of the year. In November, job losses continued in durable goods manufacturing, especially in transportation equipment. In nondurable goods, employment in food products rose by 8,000 in November, after showing no change in the prior month. The number of jobs in apparel manufacturing continued to decline; since employment in this industry last peaked in November 1991, more than 1 in every 3 jobs has been lost. Average weekly hours of private production or nonsupervisory workers edged up by 0.1 hour over the month to 34.6 hours. The manufacturing workweek declined slightly (by 0.1 hour) in November to 41.7 hours, and factory overtime was unchanged at 4.7 hours. Average hourly earnings of private production or nonsupervisory workers rose by 2 cents in November, following an increase of 4 cents in October (as revised). Over the year, average hourly earnings rose by 3.6 percent. Turning to data from the household survey, the jobless rate held at 4.1 percent in November. Unemployment rates for all the major demographic groups were little changed over the month. The number of persons employed part time even though they would have preferred full-time work--sometimes referred to as the “visibly underemployed”--was 3.2 million in November, about the same level as a year earlier. Civilian employment was essentially unchanged in November and the proportion of the working age population that was employed, at 64.3 percent, also was little changed. Six percent of the employed held more than one job (not seasonally adjusted), down slightly from 6.3 percent in November 1998. Among persons not in the labor force, there were about 1.1 million individuals (not seasonally adjusted) who were classified as “marginally attached” to the labor market in November, down slightly from the year earlier. These are persons who want and are available for work and looked for employment at some point in the past year, but are not currently searching for a job. The number of discouraged workers, a subset of this group who have stopped looking because they believe their search would be in vain, was 272,000 in November (not seasonally adjusted), somewhat lower than a year earlier. In summary, payroll employment rose by 234,000 in November. The unemployment rate was unchanged at 4.1 percent. My colleagues and I now would be glad to answer your questions. 3