TEXT

 
 
                                 FOR DELIVERY:  9:30 A.M., E.D.T.
                                 FRIDAY, MAY 3, 1996
 
 
 
 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 time.
 
 
 
                         Statement of
 
                     Katharine G. Abraham
                         Commissioner
                  Bureau of Labor Statistics
 
 before the
 
 Joint Economic Committee
 
 UNITED STATES CONGRESS
 
                         May 3, 1996
 
 
 
 
 Mr. Chairman and Members of the Committee:
 I appreciate the opportunity to comment on the labor
 market data released this morning.
 Nonfarm payroll employment was virtually unchanged (up
 2,000) in April, after increasing by an average of 221,000
 per month over the first three months of the year.  The
 unemployment rate edged down to 5.4 percent, but was still
 in the narrow range (5.4 to 5.8) where it has held since
 October 1994.
 In April, small job gains in the service-producing
 sector were accompanied by losses in goods-producing
 industries.  Employment in the services industry itself rose
 by only 20,000 over the month; during the prior 3 months, it
 had increased an average of 125,000 per month.  Computer and
 data processing services maintained its recent pace of job
 growth.  Several service industries that normally add jobs
 in the spring, however, failed to match their usual March-
 April increases, and, thus, showed employment declines on a
 seasonally adjusted basis.  These included amusements and
 recreation, help supply services, and agricultural services.
 Retail trade also added 20,000 jobs in April.
 Employment rose in eating and drinking places, furniture
 stores, and car dealerships; these gains were partly offset
 by declines in department, apparel, and food stores.
 In finance, employment increased by 12,000, with gains
 in mortgage banks, personal credit institutions, and
 security brokerages.  Brokerages have added 9,000 jobs so
 far this year.  Transportation employment was up by 13,000
 in April.  The trucking industry has added 21,000 jobs in
 the past 3 months, following nine months with little net
 growth, and air transportation has continued the pattern of
 growth begun last summer.  In contrast, job losses continued
 in public utilities, where employment has been trending
 downward in telephone communications and in electric
 companies.
 In the goods-producing sector, construction employment
 declined by 53,000 in April.  The unusual weather conditions
 during the winter and early spring have distorted the normal
 seasonal employment patterns in this industry and
 complicated the interpretation of the industrys employment
 trend.  Taking a somewhat longer view, construction
 employment has risen by 91,000 since October.
 In manufacturing, employment was down by 17,000 in
 April, but the drop would have been nearly three times as
 large had it not been for the return of workers in motor
 vehicles and equipment who had been off payrolls in March
 due to a strike and related shutdowns.  The strikes end
 also was largely responsible for the increase of both
 factory hours and overtime by 0.1 hour.  Factory job losses
 were widespread in April.  Declines in some industries, such
 as furniture and fixtures, have been fairly continuous for
 about a year now.  Other industries, including textiles and
 apparel, have experienced longer-term declines.  Even
 employment in the electronic components industry, which had
 been growing steadily for several years, has been flat the
 last 2 months.
 Average hourly earnings rose by 7 cents in April.  As I
 have mentioned on other occasions, changes in hourly
 earnings can vary greatly from month to month.  In that
 regard, I would note that the increase in hourly earnings
 over the 12 months ending in April was 3.1 percent.  This
 figure is comparable to the over-the-year changes for most
 months since April 1995, but somewhat higher than those that
 prevailed from 1992 through early 1995.
 Turning to the data from our household survey, the
 nations unemployment rate was 5.4 percent in April.
 Jobless rates for all the major worker groups showed little
 change over the month, and, in most cases, have been
 relatively flat for a year or more.  The number of newly
 unemployed--those who have been jobless for less than 5
 weeks--was down for the second month in a row.
 In summary, unemployment edged down and employment was
 unchanged in April.  Services and retail trade had
 relatively small job gains, and the number of construction
 jobs dropped over the month.  Manufacturing employment
 continued to decline despite the return of workers from
 strike-related shutdowns in the auto industry.
 
 My colleagues and I now would be glad to answer your
 questions.