FOR DELIVERY: 9:30 A.M., E.S.T.
                            FRIDAY, JANUARY 8, 1999


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, January 8, 1999




	Good morning.  I am pleased to have this opportunity 
to comment on the employment and unemployment data that we 
released this morning.
	The unemployment rate was 4.3 percent in December, 
about unchanged from November.  The rate fell early in 1998 
to 4.3 percent and has remained between 4.3 and 4.5 percent 
since April.  Employment growth was robust in December, with 
the number of nonfarm payroll jobs increasing by 378,000 to 
127.2 million.  Gains were widespread in the service-
producing sector, and construction employment rose sharply.  
Over the past year, payroll employment expanded by 2.9 
million, or 2.3 percent.  That compared to 3.4 million, or 
2.8 percent, in 1997.	
	Looking at the December data from our employer survey, 
construction employment advanced by 104,000.  This gain 
reflected continued strength in the industry as well as 
unseasonably warm weather across much of the country.  
Growth was widespread within the industry but was 
concentrated in heavy construction and in the weather-
sensitive components of special trades, such as masonry, 
roofing, and concrete.  Seasonal layoffs in construction 
were unusually light throughout the fourth quarter of 1998.  
The resulting seasonally adjusted over-the-quarter 
employment increase of 177,000 represented about half of the 
year's growth (348,000) in this industry.
	Manufacturing employment edged down 13,000 in 
December, following job losses that totaled 122,000 in 
October and November.  The factory workweek inched up over 
the month but, at 41.8 hours, remained below its year-
earlier peak of 42.2 hours.  Industrial machinery and 
equipment lost 10,000 jobs in December, with notable losses 
in the manufacture of computers and farm equipment.  In 
contrast, several manufacturing industries related to 
construction showed strength over the month, including 
lumber and wood products; stone, clay and glass; and 
furniture and fixtures.  Since manufacturing employment 
peaked in March, losses have totaled 272,000.  Mining lost 
3,000 jobs in December and 35,000 over the year, as low oil 
prices reduced oil-drilling activity.
	In the service-producing sector, the services industry 
posted a December gain of 111,000 jobs, about average for 
the year, but below the increases in October and November. 
The December gain was led by business services (49,000), 
particularly personnel supply services (27,000). 
Agricultural services had very light layoffs in both 
November and December, and, as a result, seasonally adjusted 
employment in that industry was up by 28,000 over the 2 
months.  This unusual strength most likely reflected warm 
weather in many parts of the country, which allowed 
landscaping activity to continue beyond its usual ending 
date.  
	For 1998 as a whole, the services industry added 1.4 
million jobs and grew at a pace of 3.7 percent.  Computer 
services and management and public relations were the 
fastest-growing components of the industry.  While together 
they comprised only 7 percent of services employment, they 
accounted for 23 percent of growth in the industry in 1998.  
Health services added 131,000 jobs in 1998, about half as 
many as in 1997. Changing federal reimbursement policy led 
to employment declines in home health care services over the 
year.
	Retail trade employment grew by 53,000 in December, 
following a gain of 65,000 in November.  Above-average job 
growth in eating and drinking places in those months 
accounted for half of the gain.  Employment in department 
stores expanded by 14,000 in December and 46,000 during the 
fourth quarter, as these establishments hired more workers 
than usual during the holiday season.  Apparel stores and 
miscellaneous retail establishments (which include gift 
shops and toy and sporting goods stores, among others) did 
not share in this strong holiday buildup.  Building material 
and garden supply stores continued to show strength in 
December, adding 9,000 jobs over the month and 53,000 over 
the year.  
	The finance, insurance, and real estate industry grew 
steadily in 1998.  A December employment gain of 28,000 
contributed to the 273,000 rise over the year.  Within 
finance, increased business spurred by low interest rates 
kept job growth rapid among mortgage brokerages, which added 
52,000 jobs over the year, growing by nearly 20 percent.  
Payrolls also expanded briskly over the year among security 
brokerages and investment offices.  Real estate had a very 
strong year, adding 57,000 jobs, more than twice the gain in 
1997.  Insurance employment continued a steady upward trend.
	Transportation and public utilities posted a job gain 
of 32,000 in December.  This was the largest monthly rise 
for this industry in 1998 and brought its total growth for 
the year to 190,000.  Over-the-month growth was strong in 
both air transportation (especially air courier services) 
and trucking.  Communications added 9,000 jobs in December 
and 53,000 over the year. 
	In government, employment expanded by 59,000 in 
December as declines in Federal employment were more than 
offset by increases at the state and local government 
levels.  The state government increase of 34,000 was 
concentrated in education.  Because the survey reference 
period was particularly early this December, a larger-than-
usual number of colleges were still in session.  Local 
government added 46,000 jobs, with gains split between 
education and other local government jobs.  Again, however, 
these gains may reflect seasonal adjustment difficulties.
	Average hourly earnings of production or 
nonsupervisory workers in the private sector grew by 5 
cents, to $12.98, following smaller increases in each of the 
prior 3 months.  Over the year, hourly earnings increased by 
48 cents, or 3.8 percent, about the same pace of growth as 
in 1996 and 1997. 
	Turning now to our survey of households, the
unemployment rate was little changed at 4.3 percent in 
December.  It has remained in the 4.3 to 4.5 percent range 
since April and was last this low in early 1970.  None of 
the unemployment rates for the major worker groups showed 
any significant change in December.  Over the year, the rate 
for blacks declined significantly.
	Long-term unemployment fell over the year, as the 
number of persons who had been seeking jobs for 15 weeks or 
more dropped by nearly 20 percent.  The number of workers 
who were at work part time for economic reasons (that is, 
they would have preferred full-time work) also declined over 
the year.
	Civilian employment grew sharply, by 413,000, in 
December, to 132.5 million.  Over the year, employment rose 
by 2.2 million (after adjusting for changes in our composite 
estimation procedures introduced last January).  The 
employment-to-population ratio edged up a tenth to 64.2 
percent in December.
	Before concluding, I would like to note that this is 
the month in which we update our seasonal adjustment factors 
and make revisions to previously published seasonally 
adjusted household survey estimates going back to January 
1994.  All of the seasonally adjusted household data in 
today's news release reflect these revisions.
	In summary, nonfarm payroll employment rose in 
December, and unemployment was about unchanged.  Over the  
past year, payroll employment rose by 2.9 million, or 2.3 
percent, somewhat less than in the prior year.  Unemployment 
fell early in 1998 to 4.3 percent, and has remained near 
that level since April.  The 3.8 percent pace of growth in 
average hourly earnings over the year was similar to that 
experienced in both 1996 and 1997.

My colleagues and I now would be glad to respond to 
your questions.  
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