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

Kathleen P. Utgoff

Commissioner

Bureau of Labor Statistics

Friday, June 6, 2003

Labor market conditions were little changed in May. 

The unemployment rate was essentially unchanged at 6.1 

percent, and nonfarm payroll employment remained at 130.1 

million. 

As previously announced, BLS implemented several 

changes in our establishment survey this month, including a 

new industrial classification system, concurrent seasonal 

adjustment, and completion of the conversion to a 

probability-based sample. Today’s release reflects all 

these changes; historical monthly time series data are 

available on the BLS Web site. Further information about 

these changes and their impact can be found in the 

Employment Situation news release and in articles that will 

appear in our Employment and Earnings publication and on 

our Web site.
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The new North American Industry Classification System 

(NAICS) is a fundamentally different way of classifying 

business establishments that better reflects today’s 

economy. NAICS was designed to break out new and emerging 

industries and to provide more detail for the service 

sector. 

Payroll survey figures this month also incorporate 

regularly scheduled annual benchmark revisions, in 

accordance with our standard practice. The benchmarking 

process involves revising our sample-based employment 

estimates with information from a full universe count of 

employment derived from unemployment insurance tax records 

for March 2002. 

Turning to the May employment data from the survey of 

business establishments, within the goods-producing sector, 

employment in the natural resources and mining industry was 

little changed in May. This industry has lost 50,000 jobs 

since its most recent employment peak in June 2001, with 

about half of the losses occurring in support activities 

for mining.

Construction employment increased for the third month 

in a row, with a gain of 26,000 in May. Job losses in the 

industry totaled 160,000 from March 2001 to February 2003. 
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Since February, construction has gained 83,000 jobs, as 

strength in residential housing spurred growth in specialty 

trade contractors and construction of buildings.

Manufacturing lost 53,000 jobs in May, in line with 

average losses over the prior 15 months. Nearly 2.6 

million factory jobs have been lost since July 2000. Overthe-month losses were widespread, with notable declines 

persisting in computer and electronic products, machinery, 

and fabricated metals. A May gain of 9,000 jobs in 

transportation equipment reflects a return to work 

following temporary shutdowns in auto plants in April. 

Despite the May increase, the transportation equipment 

industry has lost 56,000 jobs over the year. The factory 

workweek was up 0.1 hour to 40.2 hours in May, following a 

large decline of 0.3 hour in April; overtime edged up 0.1 

hour to 4.1 hours in May.

Employment in trade, transportation, and utilities 

continued to trend downward in May. Wholesale trade has 

lost 386,000 jobs since employment peaked in March 2000, 

with the declines concentrated in durable goods 

distribution. Retail trade employment has shown little 

definitive change thus far in 2003, after declining by 

374,000 from February 2001 to December 2002. (I would note 

that, under NAICS, retail trade no longer includes eating 
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and drinking places.) Within transportation and 

warehousing, air transportation lost 5,000 jobs in May. 

Employment in this industry has fallen by 113,000 since 

March 2001. 

The information sector, a new grouping under NAICS, 

includes telecommunications, publishing, motion pictures, 

broadcasting, and Internet-related services. Overall, the 

sector showed little employment change since February, but 

had lost 410,000 jobs from March 2001 through February 

2003. Employment declines in telecommunications, the 

largest component industry, have slowed in recent months; 

average monthly job losses thus far in 2003 have been less 

than half those in 2002. Employment in publishing (except 

Internet) decreased by 4,000 in May and is down nearly 

100,000 since January 2001. 

Employment in finance and insurance continued its 

upward trend with a gain of 12,000 in May. Employment in 

credit intermediation--which includes banking and mortgage 

lending--posted its third large monthly gain in a row with 

an increase of 19,000 in May. Credit intermediation has 

added 248,000 jobs since July 2000. 

Professional and business services added 48,000 jobs 

in May. The industry’s employment has shown no net gain 

over the year and is down by 831,000 since its peak in 
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November 2000. Within professional and business services, 

temporary help services--which provides workers to other 

industries--added 58,000 jobs in May. Still, this 

industry’s employment is about 500,000 below its level in 

April 2000. Employment in accounting services fell by 

30,000 in May, as declines continued after strong seasonal 

hiring earlier in the year. On net, employment in the 

industry is unchanged from December, before seasonal hiring 

for tax preparation began. 

Employment in education and health services continued 

its upward trend in May; the industry has added more than a 

million jobs since March 2001. Over the month, employment 

growth continued throughout health services; social 

assistance lost 10,000 jobs.

Employment in the leisure and hospitality industry was 

little changed in May. The industry has lost nearly 

100,000 jobs since January, with major declines in the 

amusements, gambling, and recreation industry and in 

accommodations. These industries experienced smaller 

losses in May than in the prior 3 months. Employment in 

food services and drinking places was little changed over 

the month.

Government employment was little changed in May and 

has shown almost no net growth over the year.
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Average hourly earnings for production or 

nonsupervisory workers rose by 5 cents to $15.34 in May, 

after remaining flat in the prior month. Over the year, 

average hourly earnings increased by 3.2 percent.

Turning now to our survey of households, the 

unemployment rate was essentially unchanged at 6.1 percent 

in May. Unemployment rates were up over the month for 

Hispanics, whites, and adult men; the rates for other major 

worker groups showed little or no change. Nearly 9 million 

persons were unemployed in May. 

In summary, payroll employment was essentially flat 

for the second month in a row, and the unemployment rate, 

at 6.1 percent in May, was essentially unchanged over the 

month.