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 

John M. Galvin 

Acting Commissioner 

Bureau of Labor Statistics 

before the 

Joint Economic Committee 

UNITED STATES CONGRESS 

Friday, February 3, 2012

Mr. Chairman and Members of the Committee: 

Thank you for the opportunity to discuss the employment and 

unemployment data we released this morning. 

The unemployment rate decreased to 8.3 percent in January, 

and nonfarm payroll employment rose by 243,000. In 2011, 

nonfarm employment increased by an average of 152,000 per month. 

Job growth was widespread in the private sector in January, with 

the largest gains occurring in professional and business 

services, leisure and hospitality, and manufacturing. 

Professional and business services added 70,000 jobs over 

the month, compared with an average monthly gain of 48,000 in 

2011. Nearly half of the January increase occurred in 
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employment services (+33,000), as temporary help employment 

continued to trend up. Also within professional and business 

services, employment rose in accounting and bookkeeping 

(+13,000) and in architectural and engineering services 

(+7,000). 

Employment in leisure and hospitality increased by 44,000, 

mostly in food services (+33,000). Health care employment rose 

by 31,000, with job gains in hospitals (+13,000) and ambulatory 

care services (+13,000). Employment in both wholesale and 

retail trade continued to trend up over the month. 

In the goods-producing sector, manufacturing employment 

increased by 50,000 in January, nearly all in durable goods 

manufacturing. Fabricated metal products, machinery, and motor 

vehicles each added jobs. Over the past 2 months, construction 

employment rose by 52,000, mainly among nonresidential specialty 

trade contractors. Mining employment continued to expand in 

January (+10,000). Since a recent low point in October 2009, 

mining has added 172,000 jobs. 

Government employment changed little in January. Over the 

last 12 months, employment in the sector has decreased by 

276,000 with declines in local government; state government, 

excluding education; and the U.S. Postal Service. 

Average hourly earnings of all employees on private nonfarm 

payrolls increased by 4 cents in January to $23.29. Over the 
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past 12 months, average hourly earnings have risen by 1.9 

percent. From December 2010 to December 2011, the Consumer 

Price Index for All Urban Consumers (CPI-U) increased by 3.0 

percent. 

In accordance with annual practice, the establishment 

survey data released today reflect the incorporation of 

benchmark revisions. Each year, BLS re-anchors the sample-based 

survey estimates to full universe counts of employment, 

primarily derived from administrative records of the 

unemployment insurance tax system. The level of nonfarm payroll 

employment in March 2011 was revised up by 162,000 (not 

seasonally adjusted) or 0.1 percent. The average benchmark 

revision over the past 10 years was plus or minus 0.3 percent. 

(Further information about the impact of the benchmark revision 

is contained in our news release and on our Web site at 

http://www.bls.gov/web/empsit/cesbmart.htm.) 

Before discussing the data from our survey of households, I 

would note that, as is our annual practice, we have incorporated 

new population controls into the January estimates. Data 

beginning in January 2012 reflect population controls based on 

Census 2010, updated information on net international migration, 

and some methodological adjustments in the estimation process. 

Official estimates for December 2011 and earlier months will not

be revised to incorporate the Census 2010-based controls. The 
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impact of the new controls on the unemployment rate is 

negligible. However, two important household survey measures, 

the employment-population ratio and the labor force 

participation rate, are lowered by a change in the composition 

of the population (based on comparisons of December 2011 

estimates computed using the old and new controls). The new 

controls raise the population of persons 55 years and older and, 

to a lesser extent, persons 16-24 years of age. Both of these 

groups are less likely to be in the labor force than the general 

population. (Additional information about the Census 2010-based 

population controls and impact can be found in our news release 

and on our Web site at http://www.bls.gov/cps/cps12adj.pdf.) 

Returning to the data for January, the unemployment rate 

continued to decline over the month. Since August 2011, the 

jobless rate has fallen from 9.1 to 8.3 percent, and the number 

of unemployed persons has declined by about 1.2 million. In 

January, the number of persons unemployed for 27 weeks or more 

was little changed at 5.5 million and made up 42.9 percent of 

the total. The employment-population ratio increased over the 

month, and the labor force participation rate was unchanged, 

after accounting for the impact of Census 2010-based population 

controls. 
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To summarize January’s labor market developments, nonfarm 

payroll employment increased by 243,000, and the unemployment 

rate decreased to 8.3 percent. 

My colleagues and I now would be glad to answer your 

questions.