FOR DELIVERY: 9:30 A.M., E.D.T.
                            THURSDAY, JULY 2, 1998


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

Thursday, July 2, 1998




	Good morning.  I am pleased to have this opportunity to 
comment on the employment and unemployment data that were 
released this morning.
	Nonfarm payroll employment grew moderately in June, and 
the unemployment rate edged up.  At 4.5 percent, the 
unemployment rate was slightly higher than in the prior two 
months, but it was still quite low by recent historical 
standards.  
	The nonfarm job count rose by 205,000 over the month.  
Private-sector employment grew by 238,000, about in line 
with the average monthly increase of 242,000 over the prior 
year.
	As in most recent months, job growth in June was driven 
by gains in the service-producing sector of the economy.  
Employment in the services industry expanded by 136,000.  
Help supply services, which had been weak for several 
months, rebounded in June with a gain of 32,000 jobs.  
Engineering and management services added 25,000 jobs.  The  
long-term growth trend in computer services continued, and 
health services posted its largest employment gain so far 
this year.
	Employment in finance, insurance, and real estate grew 
by 30,000 over the month, continuing its long-term upward 
trend.  Over the past year, employment in this industry 
group has grown at a pace about 50 percent faster than the 
rest of the economy, adding more than a quarter of a million 
jobs.  The June employment gains were widespread.  A strong 
increase in finance was led by job gains in mortgage lending 
institutions and security brokerages.  Insurance continued 
to grow rapidly, while real estate resumed its job growth 
after having been flat in May.
	Retail trade posted its third consecutive large 
employment increase in June.  Eating and drinking places, 
with 21,000 net new jobs, accounted for a large share of the 
53,000-job gain in retail.  Furniture stores and auto 
dealers also added workers.  Steady long-term growth in 
wholesale trade continued.  A decline of 33,000 jobs in 
government resulted from losses at the federal, State, and 
local levels.
	In the goods-producing sector, the construction 
industry posted an increase of 20,000 jobs, after having 
lost jobs in May.  Although month-to-month employment change 
in the construction industry often is uneven and has been so 
this winter and spring, the industry has added 269,000 jobs 
over the past 12 months.  
	Manufacturing employment fell by 29,000 in June, 
continuing the weakness that has characterized this industry 
for most of 1998.  Over-the-month job losses were 
widespread.  A strike in fabricated metals curtailed the 
availability of needed components and contributed to an 
employment decline of 6,000 in the auto industry.  Most of 
the announced plant shutdowns in the auto industry occurred 
during or after the survey reference week, and thus did not 
affect the employment estimate.  Employment in apparel 
continued to fall.  Textiles, paper products, and electronic 
components also had significant job losses over the month.  
Printing and publishing, which showed strength in June, had 
been flat for most of 1998.  At 41.8 hours, the factory 
workweek was unchanged over the month.
Average hourly earnings of production and 
nonsupervisory workers rose by only one cent in June, 
following increases totaling 10 cents over the prior 2 
months.  Since June of 1997, hourly earnings have grown by 
4.1 percent.
	Turning to data from the household survey, the 
unemployment rate was 4.5 percent in June, compared with 4.3 
percent in April and May.  In June 1997, the unemployment 
rate had stood at 5.0 percent.  All of the major demographic 
groups have shared in the general improvement over the past 
year.
	In summary, private-sector employment continued to grow 
in June, with the largest gains coming in the service-
producing industries.  The unemployment rate edged up by 
two-tenths of a percentage point to 4.5 percent.

My colleagues and I would be glad to answer your 
questions.
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