FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, JUNE 4, 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 Daylight Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

Friday, June 4, 1999


Good morning.  I appreciate this opportunity to comment 
on the employment and unemployment data that we released 
this morning.
The unemployment rate, at 4.2 percent in May, changed 
little over the month, and has been below 4.5 percent since 
November 1998.  A nominal increase of 11,000 in payroll 
employment in May followed a large gain of 343,000 (as 
revised) in April. 
Job losses occurred throughout the goods-producing 
sector of the economy in May.  In mining, employment 
continued to recede, with a loss of 7,000 jobs.  Since its 
most recent peak in February 1998, mining has lost 75,000 
jobs, and the rate of decrease has accelerated this year.  
The vast majority of the job losses have been in oil and gas 
extraction.
Construction employment declined by 40,000 in May (on a 
seasonally adjusted basis).  Although May construction 
hiring fell short of seasonal expectations, resulting in an 
employment decline after seasonal adjustment, there is no 
way to determine whether this decline represents a departure 
from trend growth in the industry.  Recent month-to-month 
employment changes in the industry have been erratic, partly 
because of unusual weather patterns this past winter.  Since 
last October, employment growth in construction has averaged 
28,000 per month. 
In manufacturing, the downward trend in employment 
continued in May, as the number of factory workers fell by 
45,000.  Factory job losses were widespread.  In durable 
goods, notable declines occurred in industrial machinery and 
in aircraft.  Among producers of nondurable goods, both 
apparel and textiles continued their long-term declines.  
Overall, factory job losses now total 453,000 since the most 
recent peak in manufacturing employment in March 1998.  
Despite the losses in employment, both the factory workweek 
and factory overtime, at 41.7 hours and 4.6 hours in May, 
respectively, remain relatively high by historical 
standards.
Within the service-producing sector, job growth was 
generally sluggish in May.  The services industry added 
71,000 jobs, well below the average monthly gain of 125,000 
for the prior 12 months.  Services job growth was held back 
in part by employment declines (after seasonal adjustment) 
in agricultural services and hotels, where there was less 
seasonal hiring than usual.  A number of other services 
industries less affected by seasonal hiring showed below-
trend growth in May.  For example, employment in health 
services was about unchanged following several months of 
strong growth, and job growth in engineering and management 
services was below its recent average.  Business services 
added 42,000 jobs in May, about in line with its recent 
growth pace, as strong job growth continued in computer and 
data processing services.  
Employment in retail trade was little changed in May, 
but this came on the heels of an exceptionally large 
increase in April.  Although job growth in retail trade has 
fluctuated from month to month thus far this year, it has 
averaged 46,000 per month, compared to an average of 32,000 
per month for all of 1998.  In May, there was a sizable 
employment gain in eating and drinking places and average 
growth among auto dealers and furniture retailers, but these 
increases were offset by job losses in food stores and in  
building materials and garden supplies.  Employment in 
wholesale trade, which had been expanding at a fairly solid 
clip since mid-1996, was little changed over the month.  
Finance employment rose by 8,000 in May, somewhat less 
than the average monthly gain in the industry for the prior 
12 months.  Employment in transportation increased by 12,000 
in May, mostly in trucking and air transportation.  
Government employment was about unchanged overall.  
Sizable job losses in the Federal government, reflecting a 
temporary decline in the number of workers preparing for the 
decennial census, were offset by an increase in local 
government education.
Average hourly earnings of private production or 
nonsupervisory workers increased 5 cents in May to $13.19.  
Over the past year, average hourly earnings rose 3.6 
percent.
I would like to note that, in accordance with standard 
practice, these payroll survey figures reflect the 
incorporation of our regularly scheduled annual benchmark 
revisions.  Each year, we adjust our sample-based survey 
estimates to full universe counts of employment, derived 
principally from the administrative records of the state 
unemployment insurance tax system.  There is no benchmark 
source for the hours and earnings data, but these series may 
be affected by the benchmark process because of changes in 
the industry employment weights and the introduction of new 
seasonal factors.
The impact of the revisions on employment in the March 
1998 reference month is an upward adjustment of 44,000, or 
less than one-tenth of one percent of the total nonfarm 
employment level.  This is a smaller percent adjustment than 
the average for the past decade.  Estimates for payroll 
employment for the post-benchmark period, April 1998 
forward, also have been revised to incorporate the new 
benchmark levels as well as revised seasonal adjustment and 
bias adjustment factors.  
Turning now to the data from our survey of households, 
as I mentioned earlier, the unemployment rate was little 
changed at 4.2 percent in May.  The jobless rate has 
remained under 4.5 percent since November 1998.  The jobless 
rates for adult women and teenagers fell in May, but the 
rates for the other major demographic groups were little 
changed from April.  Civilian employment was essentially 
unchanged over the month, and the employment-population 
ratio held steady at 64.2 percent.
In summary, payroll employment was little changed in 
May, as job losses in mining, construction, and 
manufacturing were offset by modest employment gains among 
most of the service-producing industries.  The unemployment 
rate was little changed at 4.2 percent.

My colleagues and I now would be glad to answer your 
questions.

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