FOR DELIVERY: 9:30 A.M., E.S.T. FRIDAY, DECEMBER 8, 2000 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 8, 2000 Good morning. I am pleased to have this opportunity to comment on the November employment and unemployment statistics that we released this morning. The unemployment rate was 4.0 percent in November, essentially unchanged from October. In fact, this key labor market measure has remained within 0.1 percentage point of its current level since the fall of 1999. A large decline in government employment in November held the overall gain in nonfarm payroll jobs to a modest 94,000. The private sector added 148,000 jobs; by comparison, the average monthly gain for all of 1999 was 202,000 and for the first half of 2000, it was 186,000. In the last 5 months, however, private-sector job growth has slowed to an average of 122,000 a month. In November, a number of service-producing industries showed healthy job growth, although employment in both manufacturing and construction was flat. In manufacturing, employment has been steady for 2 months after losses in August and September. Overall factory employment stagnated in November even though several durable goods industries had substantial gains, most notably electronic components, industrial machinery, and instruments. (An employment increase in transportation equipment reflected returning strikers in shipbuilding.) In contrast, job losses continued in nondurable goods industries, especially textiles, apparel, and rubber and miscellaneous plastics. Meanwhile, the factory workweek resumed its recent downward trend. In fact, after peaking this spring, manufacturing hours now are at their lowest level since the early 1990s (with the exception of the few months affected by severe winter storms). Construction employment also was about unchanged in November, following 2 months of substantial gains. The weakness in November occurred among such outdoor activities as heavy construction, concrete, roofing, and masonry, which were affected by the unusually cold weather in much of the country and heavy rain in the South. The largest downward pull on November’s job growth came from government, where losses from the various components totaled 54,000. Both state and local education employment fell after seasonal adjustment, as school hiring failed to meet seasonal expectations. A decline in federal employment resulted from weak seasonal hiring by the Postal Service and continued losses in other agencies. Services employment rose by only 65,000 in November following no change in October. This slow pace of growth is in sharp contrast to the average monthly gain of 109,000 for the first 9 months of the year. Gains in business services were held down by its help supply component, which lost 10,000 jobs in November and has lost 71,000 since April, after having added jobs consistently over the prior several years. Amusement and recreation services shed even more jobs than normal for this time of year, resulting in a seasonally adjusted employment drop of 15,000. In contrast to the industries I have just discussed, many of the other service-producing industries actually fared quite well in November. For example, within services, above- average employment increases occurred in hospitals, private education, and membership organizations, while social services and engineering and management services continued their strong growth trends. Also, within business services, there was continued strength in computer services and a large job gain in building services. An increase in retail trade employment (46,000) was concentrated in department stores, where seasonal hiring was unusually strong. This may have been influenced by a particularly late survey reference period coupled with an early Thanksgiving holiday. Interestingly, miscellaneous retail establishments (such as drug, jewelry, and toy stores), which tend to mirror the seasonal pattern in department stores, saw their employment decline on a seasonally adjusted basis. Those establishments, however, had been adding workers all year, while department stores had shed about 60,000 workers over the prior year and a half. Transportation and public utilities employment rose by 16,000, reflecting a large seasonal gain among air couriers and a job increase in telephone communications. Employment in finance, insurance, and real estate rose for the fourth consecutive month, and wholesale trade had its second consecutive sizable gain. Average hourly earnings, at $13.94 in November, rose 6 cents over the month and 53 cents (4.0 percent) over the year. Looking at some of the measures obtained from the survey of households, the unemployment rate, at 4.0 percent, was essentially unchanged in November and has remained between 3.9 and 4.1 percent since October 1999. The jobless rate for Hispanics rose to 6.1 percent, from a record low of 5.0 percent in October. This measure often jumps around from one month to the next, so I would not read too much into this month's rise. Jobless rates for other major worker groups were little changed in November. The number of part-time workers who would prefer full-time work rose to 3.5 million, and the rate of multiple jobholding declined over the year to 5.5 percent of employment (not seasonally adjusted). In summary, many private service-producing industries continued to expand their payrolls in November, but the overall gain in payroll employment was tempered by a large decline in government payrolls and by a lack of job growth in construction, manufacturing, and several services industries. The unemployment rate remained within the narrow range it has occupied since October 1999. My colleagues and I now would be glad to answer your questions.