FOR DELIVERY: 9:30 A.M., E.S.T.

FRIDAY, NOVEMBER 7, 2003

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

Kathleen P. Utgoff

Commissioner

Bureau of Labor Statistics

before the

Joint Economic Committee

UNITED STATES CONGRESS

Friday, November 7, 2003

Mr. Chairman and Members of the Committee:

I appreciate this opportunity to comment on the labor 

market data we released this morning.

Nonfarm payroll employment rose by 126,000 in October, 

following increases in August and September that totaled 

160,000, after revision. I would note that the payroll 

survey estimates for the prior 2 months are always subject 

to revision as we receive reports from additional survey 

respondents. The increase in payroll employment over the 

last 3 months contrasts with declines in the February-July 

period that averaged 85,000 per month. Several service 
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industries added jobs in October. Manufacturing employment

continued to decline, although at slower pace than earlier 

in the year. The unemployment rate, at 6.0 percent, was 

essentially unchanged over the month.

Professional and business services added 43,000 jobs 

in October, with gains in many of its component industries. 

Employment in temporary help services continued to rise and 

is up by 150,000 since April.

 Employment in private educational services grew 

by 23,000 in October. Job gains over the last 3 

months have more than offset declines that occurred in 

June and July. Over the year, employment in private 

education expanded by 56,000. Health care and social 

assistance added 34,000 jobs, with noteworthy gains in

doctors’ offices and in child day care services.

 In the leisure and hospitality sector, employment 

in food services and drinking places rose by 23,000. 

Job growth in food services has picked up in recent 

months; since July, employment has increased by 

57,000. Within retail trade, food stores added 13,000 

jobs in October. Employment in food stores was 

boosted by the hiring of additional workers in 

anticipation of strikes.
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Employment in construction was little changed over the 

month, but the industry has added 147,000 jobs since its 

most recent trough in February. In October, employment in 

credit intermediation decreased by 10,000, reflecting the

decline in mortgage refinancing activity.

Manufacturing job losses continued in October 

(-24,000). Declines in the sector have moderated in recent 

months, particularly in durable goods manufacturing. In 

October, both the factory workweek and overtime were 

unchanged.

After posting a small increase in September, 

employment in air transportation fell in October. Since 

reaching its most recent peak in March 2001, the industry 

has lost more than 20 percent of its jobs.

Average hourly earnings for production or 

nonsupervisory workers, at $15.46, were essentially 

unchanged in October. Over the year, average hourly 

earnings rose by 2.4 percent.

Looking at some of the measures from our survey of 

households, the October unemployment rate of 6.0 percent 

was about the same as in September. The jobless rates for 

all the major worker groups showed little change over the 

month. About 8.8 million persons were unemployed, of whom 

2.0 million had been without a job for 27 weeks or longer. 
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Employment as measured by our household survey rose over 

the month.

In summary, nonfarm payroll employment rose by 126,000 

in October. Since July, employment is up by 286,000. The 

unemployment rate, at 6.0 percent in October, was about 

unchanged.

My colleagues and I would be glad to answer any 

questions you might have.