Monthly Labor Review December 2000 3

Employment in the 1990s

The U.S. economy sank into recession early

in the 1990s and then rebounded with the

longest running expansion in the Nation’s

history.1 Real gross domestic product (GDP)

growth slowed in 1990 as the country slipped into

recession. By 1992, however, recovery began and

GDP grew throughout the remainder of the decade. Nonfarm payroll employment increased by

nearly 21 million workers during the decade.2

Employment in export-sensitive industries followed a cyclical pattern, turning down for the

1990–91 recession and the later Asian economic

crisis. Reduced defense spending resulted in job

losses in defense-related industries, especially

early in the decade. While the number of workers

declined in these goods-producing industries,

construction and related industries began to

slowly recover in 1992, and strong employment

growth resumed by mid-decade. Technology and

demand for more services drove employment up

in the service-producing sector.

Productivity improved as new and cheaper

computer technology was applied in all sectors

of the economy. Businesses transformed their

systems to meet Y2K deadlines and to compete

with lower priced foreign goods resulting from

economic crisis in Asia. Inflation remained largely

in check throughout the decade, with moderate

gains in consumer prices. Even after adjusting

average hourly earnings for inflation, U.S. workers saw their real wages increase. Low interest

rates spurred new construction and refinance

activity. Technology stocks helped create record

profits in the stock market and boost the wealth

of many households. Consumer confidence rose

to new heights and remained strong through the

end of the decade.

The private service-producing industries accounted for nearly 90 percent of the job growth in

the 1990s and increased their share of total nonfarm employment by more than 4 percentage

points. (See chart 1.) All major industry divisions

within the service-producing sector added workers and growth was especially strong in the services division. (See chart 2.) Employment in the

goods-producing industries edged up slightly, as

losses in manufacturing and mining nearly offset

gains in construction.

Mining employment sinks lower

The mining industry lost nearly a quarter of its

workforce during the 1990s, with most of the

losses occurring in coal mining and oil and gas

extraction. Of the two, coal mining lost relatively

more workers, 40.6 percent, while oil and gas extraction lost the greatest number of workers,

88,100. (See table 1.)

Employment fell as productivity increased in

coal mining. Despite having lost jobs more rapidly than other mining industries, losses in coal

The long economic expansion fueled job growth

during the period, while new technology had mixed effects;

the employment divide between the goods- and serviceproducing sectors of the economy continued to widen

Job growth in the 1990s:

a retrospect

Julie Hatch and

Angela Clinton are

economists in the

Division of Monthly

Industry Employment

Statistics, Bureau of

Labor Statistics.

Julie Hatch

and

Angela Clinton
4 Monthly Labor Review December 2000

Employment in the 1990s

Chart 1. Percent distribution of payroll employment by industry sector, 1950, 1989, 1999

Percent Percent

1950 1989 1999

0

20

40

60

80

100

0

20

40

60

80

100

Goods-producing industries

Private service-producing industries

Government

Chart 2. Employment changes by major industry division, 1989–99

 

Millions

Millions

-30 -20 -10 0 10 20 30 40 50

-30 -20 -10 0 10 20 30 40 50 0

Percent

-2 0 2 4 6 8 10 12 14

-2 0 2 4 6 8 10 12 14 0

Percent

Mining

Manufacturing

Government

Wholesale trade

Retail trade

Finance, insurance,

Transportation and 

Construction

Services

and real estate

public utilities 
Monthly Labor Review December 2000 5

Employment change by industry, 1989–99

[Numbers in thousands}

Total nonfarm ..................................................................... 107,884 128,786 20,902 19.4

07,10–87,89,99 Total private ..................................................................... 90,105 108,616 18,511 20.5

10-39 Goods producing ........................................................... 25,254 25,482 228 .9

10-14 Mining ..................................................................... 692 535 –157 –22.7

10 Metal mining...................................................... 55.7 45.3 –10.4 –18.7

12 Coal mining ....................................................... 143.7 85.4 –58.3 –40.6

13 Oil and gas extraction ...................................... 381.0 292.9 –88.1 –23.1

14 Nonmetallic minerals, except fuels ................... 111.2 111.8 0.6 .5

15–17 Construction .............................................................. 5,171 6,404 1,233 23.8

15 General building contractors ................................ 1,331.8 1,450.1 118.3 8.9

16 Heavy construction, except building .................... 767.0 869.1 102.1 13.3

17 Special trade contractors ..................................... 3,072.1 4,084.2 1,012.1 32.9

 Manufacturing ......................................................... 19,391 18,543 –848 –4.4

24,25, 32–39 Durable goods ...................................................... 11,394 11,103 –291 –2.6

24 Lumber and wood products .............................. 756.2 828.4 72.2 9.5

25 Furniture and fixtures ....................................... 524.3 548.4 24.1 4.6

32 Stone, clay and glass products ........................ 568.4 563.3 –5.1 –.9

33 Primary metals .................................................. 771.8 699.7 –72.1 –9.3

34 Fabricated metals ............................................. 1,445.4 1,517.4 72.0 5.0

35 Industrial machinery and equipment ................. 2,124.9 2,140.5 15.6 .7

36 Electronic and other electrical equipment ......... 1,744.3 1,669.8 –74.5 -4.3

37 Transportation equipment.................................. 2,051.5 1,884.2 –167.3 –8.2

38 Instruments and related products .................... 1,025.9 856.4 –169.5 –16.5

39 Miscellaneous manufacturing ........................... 381.2 394.9 13.7 3.6

20–23,26–31 Nondurable goods ................................................ 7,997 7,440 –557 –7.0

20 Food and kindred products ............................... 1,644.4 1,676.7 32.3 2.0

21 Tobacco products ............................................. 49.9 38.4 –11.5 –23.0

22 Textile mill products .......................................... 719.8 560.2 –159.6 –22.2

23 Apparel and other textile products ................... 1,075.7 692.3 –383.4 –35.6

26 Paper and allied products ................................. 695.7 667.8 –27.9 –4.0

27 Printing and publishing ..................................... 1,555.9 1,552.9 –3.0 –.2

28 Chemicals and allied products .......................... 1,073.9 1,034.0 –39.9 –3.7

29 Petroleum and coal products ............................ 156.0 133.6 –22.4 –14.4

30 Rubber and misc. plastics products ................. 888.0 1,005.7 117.7 13.3

31 Leather and leather products ........................... 137.6 77.9 –59.7 –43.4

40–87,89,99 Service producing ............................................................ 82,630 103,304 20,674 25.0

40–49 Transportation and public utilities.................................. 5,614 6,826 1,212 21.6

40 Railroad transportation ........................................ 292.5 229.7 –62.8 –21.5

41 Local and interurban passenger transit ............... 325.7 484.5 158.8 48.8

42 Trucking and warehousing ................................... 1,379.0 1,804.6 425.6 30.9

44 Water transportation ............................................ 171.6 187.1 15.5 9.0

45 Transportation by air ............................................ 897.2 1,227.0 329.8 36.8

46 Pipelines, except natural gas .............................. 18.5 13.0 –5.5 –29.7

47 Transportation services ....................................... 319.0 463.4 144.4 45.3

48 Communications .................................................. 1,272.1 1,551.5 279.4 22.0

49 Electric, gas and sanitary services .................... 938.1 864.7 –73.4 –7.8

50–51 Wholesale trade ............................................................ 6,187 6,924 737 11.9

50 Durable goods ..................................................... 3,653 4,120 467 12.8

51 Nondurable goods ............................................... 2,534 2,804 270 10.7

52–59 Retail trade ................................................................... 19,475 22,788 3,313 17.0

52 Building materials ................................................ 783.4 989.2 205.8 26.3

53 General merchandise stores ............................... 2,544.3 2,771.3 227.0 8.9

54 Food stores ......................................................... 3,163.5 3,494.8 331.3 10.5

55 Automotive dealers and service stations ............ 2,092.4 2,368.6 276.2 13.2

56 Apparel and accessory stores ............................ 1,196.7 1,173.7 –23.0 –1.9

57 Furniture and home furnishing stores .................. 826.4 1,081.5 255.1 30.9

58 Eating and drinking places .................................. 6,401.9 7,940.3 1,538.4 24.0

59 Miscellaneous retail establishments .................... 2,466.8 2,969.0 502.2 20.4

Table 1.

Industry SIC

code

Change

Number Percent

1989 1999
6 Monthly Labor Review December 2000

Employment in the 1990s

60–67 Finance, insurance and real estate .............................. 6,668 7,569 901 13.5

60 Depository institutions ........................................ 2,273.4 2,061.0 –212.4 –9.3

61 Nondepository institutions ................................... 361.2 710.4 349.2 96.7

62 Security and commodity brokers ......................... 430.2 687.8 257.6 59.9

67 Holding and other investment offices .................. 217.7 231.4 13.7 6.3

63 Insurance carriers ............................................... 1,438.4 1,610.5 172.1 12.0

64 Insurance agents, brokers, and services ........... 651.8 760.8 109.0 16.7

65 Real estate .......................................................... 1,296 1,507 211 16.3

07,70–87,89,99 Services ..................................................................... 26,907 39,027 12,120 45.0

07 Agricultural services ............................................ 464.9 765.5 300.6 64.7

70 Hotels and other lodging places .......................... 1,595.8 1,847.7 251.9 15.8

72 Personal services ............................................... 1,085.7 1,233.1 147.4 13.6

73 Business services ............................................... 4,940.6 9,266.8 4,326.2 87.6

75 Auto repair, services and parking ....................... 884.1 1,184.1 300.0 33.9

76 Miscellaneous repair services ............................. 374.3 377.0 2.7 .7

78 Motion pictures .................................................... 374.7 609.8 235.1 62.7

79 Amusement and recreation services ................... 1,033.3 1,659.8 626.5 60.6

80 Health services ................................................... 7,462.8 9,989.3 2,526.5 33.9

81 Legal services ..................................................... 880.4 996.7 116.3 13.2

82 Educational services ........................................... 1,647.0 2,275.7 628.7 38.2

83 Social services .................................................... 1,643.6 2,800.1 1,156.5 70.4

84 Museums and botanical and zoological

gardens ............................................................ 62.0 97.9 35.9 57.9

86 Membership organizations ................................... 1,835.7 2,425.4 589.7 32.1

87 Engineering and management services ............... 2,389.2 3,254.1 864.9 36.2

Government .............................................................. 17,779 20,170 2,391 13.4

Federal government ............................................. 2,988 2,669 –319 –10.7

 Federal, except Postal Service ....................... 2,155.4 1,796.1 –359.3 –16.7

State government ................................................ 4,182 4,695 513 12.3

State government except education ............... 2,513.8 2,727.1 213.3 8.5

State government education ........................... 1,668.1 1,968.1 300.0 18.0

Local government ................................................ 10,609 12,806 2,197 20.7

Local government except education ............... 4,733.8 5,534.3 800.5 16.9

Local government education ........................... 5,875.4 7,272.0 1,396.6 23.8

Table 1. Continued—Employment change by industry, 1989–99

SIC

code Industry 1989 1999

Change

Number Percent

mining decelerated during the decade, compared with the

prior 10-year period. Most of the losses occurred in bituminous coal and lignite mining—one of the 20 three-digit

industries losing the most jobs over the period.3 (See table

2.) Demand for low-sulfur coal grew as populations migrated

to the West and Southwest. Because coal must be transported, typically by rail, output at western coal mining sites

increased with demand. Productivity in surface mining,

which is common in western states, is much greater than that

for other types of coal mining.4

In addition, demand for western coal increased as electrical utilities purchased relatively more of the lower sulfur coal

found in the West as well as in the central Appalachian region. At the same time, demand fell in the northern Appalachian region and in the Illinois basin, where sulfur content is

higher and productivity is lower. 5 With the second phase of

the Clean Air Act beginning on January 1, 2000, the demand

for lower sulfur coal should continue to increase relative to

that for the more labor-intensive, higher sulfur coal and result

in continuing employment losses in the coal mining industry.

Job losses in oil and gas extraction accelerate. While employment losses slowed in coal mining, the rate of decline

accelerated slightly in oil and gas extraction. The industry

responded to changing oil prices and demand by adjusting

production and, consequently, the number of workers. As oil

prices began to fall at the start of the decade, employment

declines followed. The industry cut back significantly in 1992,

and job losses continued until the middle of the decade, when

prices began to escalate.

In 1998, however, domestic oil prices plummeted to less than

11 dollars per barrel, and the response was dramatic. Oil and gas

extraction companies dropped more than 45,000 workers from

payrolls the following year. The industry lost nearly a quarter of

its workforce during the decade, and two-thirds of those losses

occurred in crude petroleum and natural gas extraction.

Construction rebuilds following recession

Construction’s strong connection to changes in the business

cycle led to substantial employment losses during the 1990–
Monthly Labor Review December 2000 7

91 recession. The expansionary period that followed nourished an explosion of job growth in the industry. A healthy

stock market pumped more money into the U.S. economy and,

along with low mortgage rates, fostered wealth effects. Construction expenditures grew at an exceptionally healthy rate,

and housing starts, completions, and permits surged.6 Employment in construction grew almost as rapidly as the service-producing sector, although labor and supply shortages

were evident late in the decade.7

Special trade contractors, the largest group of industries in

construction, benefited the most from the favorable economy.

Not only did people have more money to purchase new

homes, they were willing to buy in every area of the country.

In addition, Americans spent more money renovating existing

homes.8 Electrical work alone added a quarter-million workers

during the decade. This industry accounted for 20 percent of

the job growth in construction. Most industries classified

under special trade contractors grew faster than the national

job market.

In contrast to the special trade contractors industry, general building contractors lost more than a quarter of a million

jobs during the recession. The corresponding recovery was a

long, arduous process. Low interest rates and a strong housing market provided enough stimuli to effect a full recovery,

yet employment in the industry grew by only about half the

rate of the total nonfarm economy during the decade.

The remaining group of construction industries, heavy

construction, except building contractors, experienced large

declines during the 1980–82 recessions, from which it did not

recover during the subsequent economic expansion. After

suffering additional losses during the 1990–91 recession,

however, by 1999, employment in the industry had completely

recovered from losses incurred during the 1990s, and nearly

recovered from those incurred during the 1980s. Throughout

the 1990s expansion, government expenditures on long-term

heavy construction projects helped boost growth.9

Job losses continue in manufacturing

While construction-related manufacturing added workers

during the 1990s, the prevailing trend was negative throughout most other manufacturing industries—13 of 20 lost workers.10 In addition to losses suffered during the U.S. recession,

technological improvements allowed fewer workers to generate more output than in the past, the Asian economic crisis

reduced demand for goods manufactured in the United States,

and the U.S. Government reduced defense spending.

Technological innovations transformed the manufacturing

industry into a highly efficient machine. Output per hour increased more rapidly in the 1990s, compared with a decade

earlier.11 Durable goods industries showed the greatest productivity gains, and two industries stand out with particularly

impressive labor productivity improvements—output per

hour for the 10 years ending in 1997 grew at an average annual

rate of 25 percent in computer and office equipment, followed

by electronic components and accessories, with nearly 20

percent per year. Industrial production for all of manufacturing increased by more than a third during the decade, even as

employment and aggregate hours decreased.12

Business cycles create drag on manufacturing employment.

The manufacturing group of industries was particularly sensitive to changing economic conditions, both at home and

abroad. (See chart 3.) Even before 1990, both employment and

the average factory workweek, a leading economic indicator,

began to edge down. The manufacturing industry soured even

more as the U.S. economy went into recession. Not until 2

years after the official end of the recession did manufacturing

businesses begin to slowly add workers back to their payrolls.

A financial crisis hit Thailand in July 1997 and quickly

spread to neighboring Asian countries. In the United States,

manufacturing industries soon felt the pinch as well. The average workweek began to edge down at the start of the next

year, and employment peaked in April 1998. The trade deficit

for manufacturing products increased by nearly 200 percent

during the decade.13 The Asian crisis escalated to such an

extent that the Federal Reserve Board lowered interest rates

to insulate the U.S. economy from the global financial turmoil.14 Special interest groups, including manufacturers, urged

Congress to approve funding for the International Monetary

Fund to stabilize countries in crisis.15 Although the Asian

crisis and subsequent global economic turmoil abated late in

the decade, U.S. manufacturing firms continued to reduce

payrolls. A positive signal appeared late in 1999, however, as

employment losses appeared to taper off.

The durable goods industries experienced the greatest

losses and were slower to recover from national and global

economic weaknesses. Employment in primary metals (SIC 33),

which fluctuates with trade balances, sharply declined during

the decade. Significant reductions in employment occurred

prior to and shortly after the recession. Payrolls stabilized for

the most part until the Asian crisis, when large amounts of

foreign steel found its way into the U.S. market at extremely

low prices.

Blast furnaces and basic steel products (SIC 331) was hurt

in particular, and production capacity bottomed out as financial crisis spread across the globe.16 Claims of illegal dumping

prompted the U.S. Department of Commerce to investigate.

Although the amount of foreign steel imported subsequently

decreased, employment continued to fall until the final quarter of the decade.

The Asian crisis reversed the positive employment trend

in electronic and other electrical equipment (SIC 36). This industry gained an average of 36,000 jobs annually between the
8 Monthly Labor Review December 2000

Employment in the 1990s

[Numbers in thousands]

1989 1999 Level Percent

1 Federal government, except Postal Service ............................ 2,155.4 1,796.1 –359.3 –16.7

2 603 Savings institutions .................................................................. 481.5 251.5 –230.0 –47.8

3 372 Aircraft and parts manufacturing .............................................. 711.0 494.9 –216.1 –30.4

4 562 Women’s clothing stores .......................................................... 422.7 278.4 –144.3 –34.1

5 233 Women’s and misses’ outerwear

manufacturing ....................................................................... 342.4 205.2 –137.2 –40.1

6 381 Search and navigation equipment manufacturing .................... 299.5 166.3 –133.2 –44.5

7 232 Men’s and boys’ furnishings manufacturing.............................. 287.0 157.2 –129.8 –45.2

8 376 Guided missiles, space vehicles, and parts

manufacturing ....................................................................... 194.1 88.1 –106.0 –54.6

9 357 Computer and office equipment manufacturing ........................ 458.7 370.2 –88.5 –19.3

10 491 Electric services ...................................................................... 448.2 360.0 –88.2 –19.7

11 602 Commercial banks .................................................................... 1,555.0 1,475.9 –79.1 –5.1

12 225 Knitting mills manufacturing ..................................................... 214.8 141.0 –73.8 –34.4

13 533 Variety stores ........................................................................... 209.8 138.0 –71.8 –34.2

14 40 Railroad transportation ............................................................. 292.5 229.7 –62.8 –21.5

15 131 Crude petroleum and natural gas extraction ............................ 192.7 133.1 –59.6 –30.9

16 122 Bituminous coal and lignite mining ........................................... 134.2 79.8 –54.4 -40.5

17 517 Petroleum and petroleum products distribution ........................ 206.9 155.2 –51.7 –25.0

18 331 Blast furnaces and basic steel products

manufacturing ....................................................................... 279.1 227.6 –51.5 –18.5

19 314 Footwear, except rubber manufacturing ................................... 77.3 32.9 -44.4 –57.4

20 631 Life insurance ........................................................................... 550.2 506.0 -44.2 –8.0

Employment Change

Industry

Table 2. The 20 industries losing the most jobs over the 1989–99 period

SIC

code Rank

end of the recession and the start of the Asian crisis.17 The

industry lost 37,000 jobs in 1999. Almost half of the output

produced by the electronic and other electrical equipment industry is sold to foreign countries, making it the most export

dependent of all manufacturing industries.18 Electronic components and accessories firms, along with producers of semiconductors and printed circuit boards, lost the most jobs. The

computer and office equipment industry experienced a significant workforce reduction as foreign computer products entered

the United States and productivity advances occurred.19

Textile mill products (SIC 22) and the apparel industries (SIC

23) steadily lost jobs to foreign competition and technological

advances throughout the 1990s. Improved technology reduced

production time and the number of workers required to manufacture fabrics in the textile industry.20 Apparel and other textile products, influenced less by technological innovations

than by imports, lost a third of its workforce during the decade. This industry was especially harmed in the latter half of

the decade, when most Asian countries devalued their currencies, making their products much less costly in the United

States.21 Job losses were widespread, but substantial declines

occurred in women’s and misses’ outerwear.

Defense spending slows. The end of the Cold War and the

fall of the Soviet Union ushered in an era of significant cuts in

defense spending. The aerospace industry shifted its focus to

serving commercial and foreign markets, which soured late in

the decade. Mergers allowed businesses to scale back costs

by combining research and development laboratories.22 Aircraft and parts dropped 216,000 workers. Guided missiles,

space vehicles, and parts lost more than half its workforce

during the decade, and search and navigation equipment fared

only slightly better.

Economic expansion helps build job growth. Low interest rates and greater personal income marked much of the

1990s and helped boost both construction- and auto-related

employment. Manufacturing firms struggled to keep up with

the demand placed on them by the exuberant housing and

household accessories markets. Shortages for materials like

drywall, brick, and insulation delayed the construction development cycle in the latter part of the decade.23

Lumber and wood products (SIC 24) added 72,000 jobs over

the period, due mostly to strength in millwork, plywood and

structural members (SIC 243), and in wood buildings and mobile homes (SIC 245); the latter was the only three-digit manufacturing industry to make the list of the 20 fastest-growing

industries in the decade. (See table 3.) In the same vein, rubber

and miscellaneous plastics products (SIC 30) added 118,000

jobs, mainly due to high demand for plastic plumbing fixtures.

Consumers struggled with furniture shortages once their

houses were built. The scarcity of labor and fabric in the furniture manufacturing industry during the last half of the decade

prolonged delivery times and burdened retailers.24 Demand

for both building materials and automotive parts stimulated

employment growth in fabricated metal products (SIC 34). The

component industries fabricated structural metal products,

metal forgings and stampings, and miscellaneous fabricated
Monthly Labor Review December 2000 9

metal products all benefited from the healthy U.S. economy.

The robustness of the automotive and construction markets

positively influenced industrial machinery employment also.

Workers were added to assembly lines to manufacture carburetors, pistons, and valves.

Transportation and public utilities diverge

Transportation and public utilities added 1.2 million jobs during the decade. While this industry division was the secondfastest growing in the service-producing sector, its component industries took off in opposite directions. Transportation

accounted for more than 80 percent of the gain in this varied

industry division. Relatively strong employment growth was

apparent in several industries throughout transportation services. Trucking and courier services was among the top 20

industries adding jobs during the decade. (See table 4.) Air

transportation services followed closely by adding more than

260,000 workers. Air travel as measured by passenger miles

tripled from 1970 to 1995.25 The shift from heavier, lower

value manufacturing goods to lighter, higher value products

decreased the demand for water and rail services relative to

air freight and trucking services.26 As demand increased,

prompt, reliable and cost-efficient service became a necessity and forced trucking and courier services to transform

their infrastructures. These services underwent a technological revolution similar to the manufacturing industry, as a way

to keep up with the growing demand for just-in-time delivery.27 Technologies like automatic vehicle-location systems,

mobile communication systems, and on-board computers

allow transportation companies and their customers to track

freight inventories in real time.28

While trucking and air transportation added greater numbers of workers, local and suburban transportation expanded

at a much more rapid pace as States and localities raced to get

more passengers out of their cars and into mass transit systems. In contrast, railroad transportation employment continued to decline, but at a much slower pace than occurred during

the 1980s.

The communications industry added more than a quarter of

a million jobs during the decade. Cable and other pay television services (SIC 484) continued to grow even during the

economic recession and became one of the 20 fastest growing

industries.29 Employment gains in the telephone communications industry during the 1990s offset losses that occurred

in the 1980s following the break up of AT&T. The demand for

cellular service doubled in the last 3 years of the 1990s with

more than 76 million subscribers in June of 1999.30 In addition, the increased popularity of pagers and the Internet helped

raise employment levels.

 Chart 3

Chart 3. Employment indexes for manufacturing, durable goods, and nondurable goods, 1989–99

Index

(1989=1.00)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

0.85

0.90

0.95

1.00

1.05

0.85

0.90

0.95

1.00

1.05

Beginning of Asian economic crisis, July 1997

Index

(1989=1.00)

NOTE: Shaded area represents the period of economic contraction, July 1990 to March 1991.

Nondurable goods

Manufacturing

Durable goods
10 Monthly Labor Review December 2000

Employment in the 1990s

The 20 industries growing the fastest during the 1989–99 period

[Numbers in thousands]

1989 1999 Level Percent

1 808 Home health care services ....................................................... 243.7 635.6 391.9 160.8

2 737 Computer and data processing services .................................. 736.3 1,830.8 1,094.5 148.6

3 736 Personnel supply services ....................................................... 1,454.5 3,600.7 2,146.2 147.6

4 616 Mortgage bankers and brokers ................................................ 149.1 356.8 207.7 139.3

5 628 Security and commodity services ............................................ 71.1 156.7 85.6 120.4

6 781 Motion picture production and services ................................... 133.9 278.3 144.4 107.8

7 411 Local and suburban transportation ........................................... 126.8 245.4 118.6 93.5

8 835 Child day care services ............................................................ 378.4 694.9 316.5 83.6

9 836 Residential care ....................................................................... 422.7 775.4 352.7 83.4

10 874 Management and public relations ............................................. 570.0 1,035.5 465.5 81.7

11 799 Miscellaneous. amusement and recreation services ................ 697.7 1,240.5 542.8 77.8

12 615 Business credit institutions ...................................................... 75.4 132.1 56.7 75.2

13 832 Individual and family services .................................................. 433.7 752.3 318.6 73.5

14 484 Cable and other pay television services .................................. 117.4 200.5 83.1 70.8

15 495 Sanitary services ..................................................................... 105.2 178.9 73.7 70.1

16 573 Radio, television, and computer stores .................................... 272.3 454.5 182.2 66.9

17 473 Freight transportation arrangement .......................................... 113.9 187.2 73.3 64.4

18 422 Public warehousing and storage .............................................. 114.6 185.4 70.8 61.8

19 632 Medical service and health insurance ...................................... 228.1 368.9 140.8 61.7

20 245 Wood buildings and mobile homes manufacturing .................... 64.4 102.9 38.5 59.8

Employment Change

Industry Rank SIC

code

Table 3.

While job growth occurred in transportation and communications, the public utility industries lost 7.8 percent of their

workforce. The loss can be attributed to substantial reductions

in electric services employment. The electric services industry

underwent major upheaval with the introduction of deregulation. Electric companies repositioned themselves as a precautionary measure against the threat of deregulation.31 Mergers

led to economies of scale. Productivity improved, allowing fewer

workers to produce more energy than in the past.

Wholesale trade mimics manufacturing

Employment in wholesale trade grew the slowest of all service-producing industries during the decade. Job growth in

durable goods distribution only slightly outpaced that of nondurable goods and, when combined, resulted in sluggish employment growth in wholesale trade compared to the all-industry average. Like manufacturing, employment contracted

during the year prior to the recession, and then lagged behind

in the recovery. Wholesale trade did not fully recover until

1995.

The durable goods distribution industry, which accounts

for approximately 60 percent of total employment in wholesale

trade, responded dramatically to the changing business cycle.

Losses were severe and recovery slow, but, once underway,

expansion was rapid. In contrast, employment in nondurable

goods distribution was not nearly as volatile and more closely

mirrored overall industry employment trends.

Professional and commercial equipment (SIC 504) accounted for close to 40 percent of employment growth in

durable goods and was affected much more mildly during the

recession. This industry was largely influenced by the computers, peripherals, and software industry. During the first

half of the decade, the average annual rate of job growth in

the computer industry remained flat, but rebounded and managed to grow at an 8-percent average annual rate for the rest

of the decade. The integration of the personal computer into

the daily routine of more and more U.S. households increased consumer demand and, therefore, employment.32

According to the Bureau of the Census, the percent of households that owned a computer more than doubled to 36.6 percent between 1989 and 1997.33

Retail trade sells itself short

Employment changes in the retail trade industry were highly

sensitive to shifting trends in demographics, buying power,

and fashion. More disposable income in the 1990s helped retail sales expand by 70 percent. Strong sales were not reflected

in strong job growth in retail trade, and employment in the

industry grew slower than that of the total private economy.34

Retail e-commerce sales in the fourth quarter of 1999 were less

than one percent of total retail sales; thus, e-commerce cannot

be blamed for this sluggish growth.35

A tight labor market plagued the Nation at the end of the

decade and hampered employment growth in most retail industries. Employers desperate for workers devised new and

innovative methods for hiring and retaining employees. Major

retail chains started to recruit seasonal help earlier. Companies hosted parties and added extra incentives, such as bigger
Monthly Labor Review December 2000 11

The 20 industries gaining the most jobs during the 1989–99 period

[Numbers in thousands]

1989 1999 Level Percent

1 736 Personnel supply services ......................................................... 1,454.5 3,600.7 2,146.2 147.6

2 58 Eating and drinking places ......................................................... 6,401.9 7,940.3 1,538.4 24.0

3 Local government education .................................................... 5,875.4 7,272.0 1,396.6 23.8

4 737 Computer and data processing services ................................. 736.3 1,830.8 1,094.5 148.6

5 Local government, except education ....................................... 4,733.8 5,534.3 800.5 16.9

6 738 Miscellaneous business services ............................................ 1,197.5 1,820.7 623.2 52.0

7 801 Offices and clinics of medical doctors ...................................... 1,267.9 1,876.6 608.7 48.0

8 806 Hospitals .................................................................................... 3,438.5 3,982.4 543.9 15.8

9 799 Miscellaneous amusement and recreation services .............. 697.7 1,240.5 542.8 77.8

10 874 Management and public relations services ............................. 570.0 1,035.5 465.5 81.7

11 805 Nursing and personal care facilities ........................................ 1,355.7 1,784.5 428.8 31.6

12 808 Home health care services ....................................................... 243.7 635.6 391.9 160.8

13 836 Residential care services ......................................................... 422.7 775.4 352.7 83.4

14 421 Trucking and courier services, except air ................................ 1,260.6 1,610.5 349.9 27.8

15 832 Individual and family services .................................................. 433.7 752.3 318.6 73.5

16 835 Child day care services ............................................................ 378.4 694.9 316.5 83.6

17 531 Department stores ..................................................................... 2,116.3 2,430.8 314.5 14.9

18 State government education .................................................... 1,668.1 1,968.1 300.0 18.0

19 822 Colleges and universities ......................................................... 1,000.6 1,286.3 285.7 28.6

20 541 Grocery stores ........................................................................... 2,814.3 3,084.6 270.3 9.6

Industry

Employment Change

Rank SIC

code

Table 4.

store discounts and increased wages.36 Retail stores not only

competed against each other for workers, but against higher

paying industries as well.

Apparel and accessory stores—the only retail industry to

lose workers during the decade—experienced widespread

employment declines. The largest losses were in women’s

clothing stores. Declines in employment were caused by several different factors. Over-saturation of stores in the women’s

apparel market discouraged employment growth with chains

going out of business or reducing the number of stores.37 A

key demographic group, 25-to 44-year-old women, spent less

money on clothes for themselves and price-shopped more

aggressively.38

While apparel stores were losing workers, employment in

department stores continued to grow. Discount department

stores benefited from the increasing number of price-conscious

shoppers. Customers liked the convenience of one-stop shopping. According to some reports, discount department stores

even became a fashionable place to shop for clothing.39 Although department stores were one of the 20 industries adding the most jobs in the 1990s, their percentage increase was

below the average growth rate for all industries.

Furniture and home furnishings stores added more than a

quarter of a million jobs in the 1990s. This was due largely

to radio, television and computer stores, which was one of

the fastest growing industries overall. Increased use of personal computers and other high-tech appliances at home and

in the workplace fueled job growth in radio, television, and

computer stores.40 Employment in this industry grew by 66.9

percent over the decade.

As households became more prosperous, they spent more

money eating outside the home. Eating and drinking places’

sales, in current dollars, increased by 60 percent during the

decade.41 Sales growth was reflected in employment, which

grew faster than the all-industry average. Almost 1 out of every 2 jobs added in retail trade occurred in eating and drinking places.

Employment in grocery stores grew slower than total retail

but they still added 270,000 jobs. These stores, forced to compete with nontraditional food retailers, underwent major renovations. Many local or regional businesses transformed into

national food store chains through mergers and acquisitions.

Larger retailers, using economies of scale, positioned themselves to compete against gas stations with convenience

stores, drugstores selling groceries, and super centers, a

combination discount department store and supermarket.42

Low interest rates, healthy economy drive finance

Finance, insurance, and real estate posted moderate employment gains during the 1990s. Economic changes late in the

decade spurred growth in some of these industries. The lowest interest rates in 3 years generated a frenzy of activity and

strong employment growth for mortgage bankers and brokers.

Stock brokerages also added workers at a rapid pace as the

number of households that owned stocks multiplied and

strength in technology stocks resulted in a soaring market.

Job losses in depository institutions partly offsets gains made
12 Monthly Labor Review December 2000

Employment in the 1990s

in these industries. Depository institutions lost 9.3 percent

of their workforce. The vast majority of the contraction was

in savings institutions, which shrank by almost half. In addition, traditional commercial banks dropped workers from

their payrolls, but at a much slower rate than savings institutions. Depository institutions continued to adopt new technologies and business practices as they were faced with increased competition from other financial businesses. Banks

increasingly relied on technology such as automated teller

machines (ATM) and Internet banking to lower transaction

costs.43 According to the American Bankers Association, for

example, an ATM transaction costs 75 percent less than one

made through a traditional teller.44 Finance industries continued to make their workforces more flexible by contracting for some of their labor, lower skilled workers in particular.45 Bank failures and merger activity continued to mark the

industry.46 With all of these changes, commercial banks produced more output with fewer employees, and labor productivity increased close to 30 percent during the decade.47

Employment in nondepository institutions almost doubled

as mortgage banks, credit-card issuers, and auto-financing

companies grew in popularity as an alternative to traditional

commercial banks. Looser restrictions on the fees companies can charge customers, a growing real estate market, and

record levels of consumer spending and debt are a few explanations for rapid growth.48 Particularly noteworthy is the

fourth fastest-growing industry, mortgage bankers and brokers, which increased their labor force by 139.3 percent over

the decade. (See chart 4.) Low mortgage rates and the redhot housing market helped push loan originations for purchase and refinancing to a record level, $1.47 trillion, in

1998.49

The real estate market flourished under the low interest rates

and expanding economy. Households and businesses took advantage of favorable market conditions to buy and sell real estate. According to the National Association of Realtors, potential buyers—who used the Internet during the latter part of the

decade to research neighborhoods and view homes on virtual

tours—were more likely to use a real estate agent.50 As a result,

employment in real estate agents and managers expanded by

189,600 jobs during the decade. Despite this rapid expansion,

real estate operators and lessors experienced anemic job growth,

while subdividers and developers failed to fully recover from

the recession early in the decade.

With low interest rates and the corresponding mortgage

refinance activity, consumers had more money to spend and

continued to stimulate the economic expansion. In addition to

buying commercial goods and services, consumers bought

stocks and bonds. Close to 50 percent of households owned

stocks, and Wall Street earned record profits.51 Employment

Chart 4

 

Employment

(in thousands)

Interest rate

(in percent)

Chart 4. Employment in the mortgage bankers and brokers industry versus 30-year fixed

mortgage interest rate, 1982–99

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

0

100

200

300

400

6

8

10

12

14

16

18

Employment

Interest rate
Monthly Labor Review December 2000 13

Private production or nonsupervisory workers and average weekly hours

Production or nonsupervisory workers

(percent of total private)

1989 1999 Change 1989 1999 Change

Total private ..................................... 100.0 100.0 ... 34.6 34.5 –.1

Goods-producing ............................. 24.3 20.4 –3.9 40.3 41.0 .7

 Mining .......................................... .7 .5 –.2 43.0 43.8 .8

 Construction ................................ 5.5 5.6 .1 37.9 39.1 1.2

 Manufacturing .............................. 18.1 14.3 –3.8 41.0 41.7 .7

Service-producing ............................ 75.7 79.6 3.9 32.7 32.8 .1

 Transportation and public

 utilities ....................................... 6.4 6.4 .0 38.3 38.7 .4

 Wholesale trade ........................... 6.8 6.2 –.6 38.0 38.3 .3

 Retail trade .................................. 23.6 22.5 –1.1 28.9 29.0 .1

 Finance, insurance, and

 real estate ................................. 6.6 6.2 –.4 35.8 36.2 .4

 Services ...................................... 32.2 38.3 6.1 32.6 32.6 .0

Industry

Table 5.

Average weekly hours

in securities and commodity brokerages grew by more than a

quarter of a million jobs by the end of the decade. Security

and commodity services, while accounting for slightly less

than a quarter of total employment in security and commodity brokers, more than doubled its employment.

Services leads job growth

The services industry was the driving force behind job growth

during the 1990s. Rapid technological transformation helped

prolong the longest economic expansion on record and helped

create a substantial number of employment opportunities in

services. Of the 10 specific industries adding the most jobs

during the decade, 7 were in services.

Business services: The Real McCoy. Employment in business services grew more than any other industry group during

the decade. (See table 1.) Business services accounted for

approximately a third of all job growth in the services division.

Topping the list of most jobs added and third in growth rate,

personnel supply services, which includes both traditional

employment agencies and help supply firms (primarily temporary help agencies), accounted for half the strength in business services. Employment opportunities exploded in the help

supply industry as more firms relied on temporary help as a

way to manage labor more effectively. Businesses adopted the

concept of “just-in-time labor,” similar to just-in-time production which is common in the automobile industry. Labor supplied by the help supply industry enabled firms to quickly

adjust their labor forces to stay competitive.52

Firms expanded demand for temporary workers, especially

for more highly skilled ones. During the 1980s, firms typically

used temporary workers for more repetitive clerical and menial-labor tasks. This practice transformed during the next

decade as companies routinely purchased the services of

highly skilled workers from temporary agencies to meet their

diverse needs in areas such as financial services, health services, telecommunications, and information technology.53

Skilled workers were added to payrolls, and training was offered to expand the skills of all workers in areas such as word

processing and computer-based applications.54 In addition to

providing a wider range of workers, some help supply establishments began to take on the functions of traditional employment agencies, as client firms increasingly used temporary agencies to try out potential permanent employees. Some

businesses even opted to have temp firms handle all of their

staffing needs and provided on-site offices for a temporary

agency.55

Computer and data processing services mimicked help supply in its demand for more highly skilled computer professionals. Even though employment growth remained strong during

the decade, recession included, there were signs of slowing

very late in the decade. Colleges and universities could not

produce graduates with computer degrees fast enough, as firms

scrambled to cure the Y2K bug and design chips and software

for computers and other consumer products.56

Computer and data processing services added more than a

million jobs during the decade. The computer market expanded

during the 1990s as a response to the technological advancements made and the continual reduction of price. Parents began to purchase computers as educational tools for their children. Within computer and data processing services, employment grew especially in information retrieval services and the

software industry.57 Computer game software became more

sophisticated with the evolution of the computer chip, and

helped employment in the software industry grow.58 More

Americans increasingly integrated the Internet into their everyday routines, and as a result, employment blossomed in

information retrieval services. Computer consulting services,

which dominates the residual category, were greatly in de-
14 Monthly Labor Review December 2000

Employment in the 1990s

mand during the decade.59 Demand for consulting services

expanded as businesses set up local area networks, developed websites, and rewrote programs for the new millennium.

Although engineering and management services grew at

half the pace of business services, it outpaced the rate of total

nonfarm employment growth by one and a half times. Engineering and management services added 800,000 jobs during

the decade. Much of this strength can be attributed to the

value added to most industry sectors by engineering and management personnel. The construction industry in particular

benefited greatly from the engineering and architectural industry. Finance, insurance, and real estate businesses frequently relied upon management and public relation services

to improve productivity.60 Management and public relations

accounted for more than half of all job growth in management

and engineering services.

Huge gains arise from serving people. Health services,

while growing less than half as fast as business services during the 1990s, still contributed more than 2.5 million jobs to

nonfarm payrolls. The growth rate slowed from that of the

previous decade. The growing popularity of HMOs and the

implementation of the perspective payment plan by Congress

led to decreased health care expenditures.61 Not all health service industries experienced the slower growth phenomena.

Home health care services grew the fastest of all the industries, and also made the list of the top 20 in terms of number of

jobs gained. Several factors contributed to this above-average growth. First, medicare expanded benefits to make more

people eligible for home health care coverage, the cost associated with care at home was relatively less costly compared to

that at hospitals, and technological advancements provided

people the option to receive medical treatment in the comfort

of their own home.62 Nevertheless, home health care also was

affected by cutbacks in health expenditures, and ended the decade with employment 78,000 lower than its July 1997 peak.

Offices and clinics of medical doctors added jobs at a considerably slower rate than in the 1980s, but still faster than

average for services. Offices and clinics of medical doctors

ranked 7th in the number of jobs added. Hospital employment

also increased by more than a half a million jobs, but the rate of

growth in this huge industry was anemic. This, in part, is due

to the decreased average length of stay and the restructuring

of hospital staffs to reduce costs.63

Social services grew twice as rapidly as health services

during the 1990s, increasing employment by 70 percent or more

than a million employees. The growth was concentrated in

three industries—residential care services, individual and family services, and child day care services. Each of these industries made the top-20 list for both the number of jobs gained

and the growth rate. Job training, which benefited from the

restructuring of the American workforce, also added jobs at a

rapid pace. People needed skills that did not exist 10 years

ago as a result of the rapidly changing technology.

In a lighter vein, two industries that serve up entertainment—motion picture services and amusement and recreation services experienced strong rates of job growth during

the 1990s. The strong U.S. economy enabled these industries to prosper throughout the majority of the decade. As

disposable income continued to increase, the public devoted

more time and money to these luxury items.

Government employment growth slows

Taken together, the pace of job growth in Federal, State, and

local governments fell short of that in the private sector. The

Federal government reduced its workforce while State and

 Table 6. Average hourly earnings in current and constant dollars, 1989–99

Current dollars Change Constant dollars Change

1989 1999 Level Percent 1989 1999 Level Percent

 Total private ................ $ 9.66 $13.24 $3.58 37.1 $7.64 $7.86 0.22 2.9

Goods-producing .............. 11.22 14.84 3.62 32.3 8.87 8.81 –.06 –.7

 Mining ........................... 13.26 17.09 3.83 28.9 10.48 10.15 –.33 -3.1

 Construction ................. 13.54 17.18 3.64 26.9 10.70 10.20 –.50 –4.7

 Manufacturing ............... 10.48 13.91 3.43 32.7 8.28 8.26 –.02 –.2

Service-producing ............. 9.04 12.73 3.69 40.8 7.15 7.56 .41 5.7

 Transportation and

 public utilities ........... 12.57 15.69 3.12 24.8 9.94 9.32 –.62 –6.2

 Wholesale trade ........... 10.39 14.58 4.19 40.3 8.21 8.66 .45 5.5

 Retail trade .................. 6.53 9.08 2.55 39.1 5.16 5.39 .23 4.5

 Finance, insurance,

 and real estate.......... 9.53 14.62 5.09 53.4 7.53 8.68 1.15 15.3

 Services ...................... 9.38 13.36 3.98 42.4 7.42 7.93 .51 6.9

Industry

Table 6.
Monthly Labor Review December 2000 15

local governments added workers. The Federal government

lost more workers than any other industry except the apparel

and other textile products industry. The U.S. Postal Service,

part of the Federal government employment counts, added

less than a quarter of the number of jobs added during the

previous decade. Changes in the rest of the Federal government were even more dramatic: Employment peaked in 1992

and then began a descent that did not abate until the Census

Bureau began hiring temporary workers late in the decade.64

(See chart 5.) Excluding the Postal Service and temporary

Census workers, Federal employment fell to levels not observed since 1965. The U.S. Department of Defense suffered

the greatest losses —333,000 civilian workers.

While job losses occurred in the Federal government, State

and local governments added employees. The increase in

State workers, however, fell short of the number added during the 1980s. In contrast, local government added more than

twice as many workers compared to the previous decade, with

the noneducation agencies adding about 4 times as many

workers in the 1990s as in the 1980s.

As the following tabulation shows, both employment in

local public education and public enrollment for grade K

through 12 increased substantially during the 1990s.65

1989 1999

Employment (in thousands) ................... 5,875 7,272

Enrollment (in thousands) ........................ 40,543 47,244

Student-employee ratio ............................ 6.9 : 1 6.5 : 1

Employment grew faster, however, and the student-to-employee ratio fell. Although the number of all education employees grew more rapidly, teacher shortages were reported

during much of the decade and suppressed potential employment growth.66

Hours and earnings

Production workers in the goods-producing sector and

nonsupervisory workers in the private service-producing

sector earned more per week at the end of the decade, even

after adjusting for price increases. Although these workers

toiled fewer hours per week on average, their average hourly

rate of pay increased 2.9 percent after deflation by the Consumer Price Index for Urban Wage Earners and Clerical

Workers.

Services industry pulls down average weekly hours. The

average workweek for production or nonsupervisory workers edged down 0.1 hour over the decade, a continued slowing

in a long-term declining trend.67 But there is more to the story

than the small change indicates. Average weekly hours fluctuated by as much as two-tenths of an hour from one year to the

next as industries adjusted their workforces to meet changes in

demand and changes in production processes. (See chart 6.)

In 1989 and 1990, a shrinking of the average workweek

in manufacturing signaled the coming recession. Hours in

retail trade ticked down in 1990 as well, and by 1991, production workers in 7 of the 9 major industry divisions cut

back on their average weekly hours. As the U.S. economy

began to recover, hours rose. Especially large gains occurred

in 1994 throughout most of the industry divisions, but were

offset the following year. (See table 5.)

All major industry divisions showed at least a small increase in their average workweek during the 10-years ending

in 1999 with the exception of services, which saw no change

over the decade. Despite these increases, average weekly

hours edged down for the typical, private-sector production

or nonsupervisory worker. The answer to this enigma lies in

the changing industry composition of employment and the

difference in the average workweeks among industries.

In 1989, the goods-producing sector employed nearly a

quarter of all production workers, and their average workweek

stood at 40.3 hours. Ten years later, this sector’s average

weekly hours had risen but their share of production workers

fell, particularly in the manufacturing industry. In fact, among

all industry divisions, only the services industry experienced

a significant increase in production or nonsupervisory workers as a percent of those in all nonfarm, private industries.

Because services’ average weekly hours were lower than those

for all other industries, except retail trade, and because it was

the only industry to gain a greater share of all production or

nonsupervisory workers, services managed to lower the

topside average slightly, even though its average workweek

remained unchanged.

Earnings increases outpace inflation. While the average

workweek decreased during the decade, the same cannot be

said for earnings. average hourly earnings for production or

nonsupervisory workers grew by 37.1 percent. (See table 6.)

Earnings for the goods-producing sector and the transportation and public utilities industry division grew at slower rates

than the rest of the industry divisions, while the finance, insurance, and real estate industry division had the fastest earnings growth.

 Hourly earnings in finance industries expanded by more

than 50 percent during the decade. Although more contracting of lower-skilled workers and rapidly improving technology helped boost the average hourly wage rate, the strong

U.S. economy ignited earnings growth in several finance industries where workers rely heavily on commissions. Historically low interest rates spurred buying and refinance activity,

especially for mortgage bankers and brokers. Positive wealth

effects resulting from the healthy markets helped consumers

decide to funnel more of their funds into the markets and
16 Monthly Labor Review December 2000

Employment in the 1990s

Chart 5 & 6

Chart 5. Employment in Federal Government, except Postal Service, seasonally adjusted, 1965–2000

Thousands Thousands

1965 1970 1975 1980 1985 1990 1995 2000

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

2,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

2,600

Chart 6. Average weekly hours of private sector production or nonsupervisory workers, 1989–99

Hours Hours

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

34.0

34.2

34.4

34.6

34.8

35.0

34.0

34.2

34.4

34.6

34.8

35.0

NOTE: Data are annual averages of monthly estimates from the Current Employment Statistics (CES) program.
Monthly Labor Review December 2000 17

1

 National Bureau of Economic Research, Inc., US Business Cycle Expansions and Contractions, on the Internet at: http://www.nber.org/cycles.html

(visited November 2000).

2

 Data on employment, hours and earnings used in this article are from the

Current Employment Statistics (CES) program, which surveys nearly 380,000

nonfarm employers monthly. For more information on the CES program’s concepts and methodology, see BLS Handbook of Methods, Bulletin 2490 (Bureau

of Labor Statistics, April 1997), chapter 2, pp. 15–31. These data are available

on the Internet at http://www.bls.gov/ceshome.htm. .bls.gov/ceshome.htm.

3

 Table 1 represents employment change from 1989 to 1999 for each industry group by two-digit SIC code. If most of the employment movement in an

industry can be explained by changes in one of its component industries, then

those three-digit industries may be discussed also. Tables 2, 3, and 4 display

employment change at this more detailed level. Table 2 contains the 20 industries losing the most jobs, table 3 shows the 20 most rapidly growing industries, and table 4 reveals the 20 industries gaining the most.

4

 David McDermott, “Coal mining in the U.S. West: price and employment

trends,” Monthly Labor Review, August 1997, pp. 18–23.

5

 U.S. Department of Energy, Energy Information Administration, The Effects of Title IV of the Clean Air Act Amendments of 1990 on Electric Utilities:

An Update, on the Internet at http://www.eia.doe.gov (visited March 7, 2000).

6

 The Bureau of the Census produces estimates of construction expenditures, building permits, and housing starts and completions. For more information on these and other construction statistics, visit the Bureau of the

Census website, on the Internet at http://www.census.gov/pub/const/www/. .census.gov/pub/const/www/.

7

 Federal Reserve Board of Governors, “Summary of Commentary on Current Economic Conditions,” The Beige Book: 1999, on the Internet at http://

www.federalreserve.gov/FOMC/BeigeBook/1999/19990811/default.htm. 1/default.htm.

8

 Bureau of Labor Statistics, Consumer Expenditure Survey, on the Internet

at http://www.bls.gov/csxhome.htm. .bls.gov/csxhome.htm.

9

 Bureau of the Census, on the Internet at http://www.census.gov/pub/

const/www/. const/www/.

10 All of manufacturing activity falls into 1 of 20 manufacturing industries

defined at the two-digit level of aggregation in the Standard Industrial Classification (SIC) system.

11 U.S. Department of Labor, Bureau of Labor Statistics, industry productivity statistics, on the Internet at http://stats.bls.gov/iprhome.htm.

12 Federal Reserve Board, “Table 2A: Industrial production: Industry

groups, not seasonally adjusted,” Federal Reserve Statistical Release, January 1986 to present, on the Internet at http://www.bog.frb.fed.us/releases/G17/

ipdisk/ip.nsa (visited June 9, 2000).

13 U.S. Department of Commerce, International Trade Administration, table

2: U.S. trade in goods, 1972–1999, on the Internet at http://www.ita.doc.gov/td/

industry/otea/usfth/aggregate/H99t03.txt (visited June 9, 2000).

14 “Greenspan remarks make global scope of economic crisis official; Government no longer denies impact on U.S. of Asian downturn,”

The Baltimore Sun, Sept. 6, 1998, p. 11A.

15 National Association of Manufacturers, “NAM Board of Directors urging Congress to fund the IMF,” NAM Issue Information, on the

Internet at http://www.nam.org/Search/DetailIssue.asp?ID=230&

Type=NamTrak (visited June 7, 2000).

16 For more information, see the American Iron and Steel Institute

website, on the Internet at http://www.steel.org/. .steel.org/.

17 This figure is computed using annual average data for 1993–98.

Data are computed from 1993 through 1998 annual averages because

that period captures the positive growth trend in electronic and other

electrical equipment.

18 William C. Goodman and Timothy D. Consedine, “Job growth

slows during crisis overseas,” Monthly Labor Review, February 1999, pp.

3–23; see pp. 4–5 and p. 8, table 3.

19 U.S. Department of Commerce, International Trade Administration, Office of Computers and Business Equipment, on the Internet at

http://exportit.ita.doc.gov/.

20 Lauren A. Murray, “Unraveling employment trends in textiles

and apparel,” Monthly Labor Review, August 1995, pp. 62–72.

21 See Goodman and Consedine, “Job growth slows,” p. 5.

22 Ron Hetrick, “Employment in high-tech defense industries in a

post cold war era,” Monthly Labor Review, August 1996, pp. 57–63.

23 Federal Reserve Board of Governors, “Summary of Commentary

on Current Economic Conditions,” The Beige Book: 1999, on the

Internet at http://www.federalreserve.gov/FOMC/BeigeBook/1999/

19990811/default.htm. 1/default.htm.

24 Mary Ellen Lloyd, “Furniture makers struggling to meet demand,”

The Wall Street Journal, Apr. 28, 1998.

25 Transportation in the United States: A Review (U.S. Department

of Transportation, Bureau of Transportation Statistics, Washington,

DC, 1997).

26 The Role of the National Highway System Connectors: Industry

Context and Issues (Prepared for U.S. Department of Transportation,

Federal Highway Administration, Prepared by A. Strauss-Wieder, Inc.,

February 1999).

27 Cynthia Engel, “Competition drives the trucking industry,”

Monthly Labor Review, April 1998, pp. 34–41.

28 Commercial Vehicle Fleet Management and Information Systems, Technical Memorandum 3, ITS Fleet Management and Techinsurance plans, which, in turn, helped boost earnings of

security and commodity brokers and insurance carriers.

All of the service-producing industry divisions except

transportation and public utilities had lower average hourly

earnings than all of the goods-producing industry division,

at the beginning of the decade. Because of the differential

rates of earnings growth, By the end of the decade the average hourly earnings of nonsupervisory workers both in

wholesale trade and in finance, insurance, and real estate

surpassed that of manufacturing production workers. only

workers in retail trade and services earned, on average, less

than manufacturing production workers in 1999.

Notes

After adjusting for price changes, the average production or nonsupervisory workers in the private economy still

enjoyed an increase in hourly earnings. However, there are

sharp contrasts among industry divisions. Workers in all the

service-producing industry divisions, with the exception of

those in the transportation and public utilities industry, received inflation-adjusted or real increases in hourly earnings. however, real average hourly earnings in all the goodsproducing industry divisions, and in transportation and public utilities lost ground by decade end. transportation and

public utilities took the biggest hit, while manufacturing’s

real average hourly earnings were down only slightly. 
18 Monthly Labor Review December 2000

Employment in the 1990s

nology Guide (U.S. Department of Transportation, Federal Highway Administration, May 1997).

29 For more information, see Dominic Toto, “Job growth in television: cable versus broadcast, 1958–99,” Monthly Labor Review, August

2000, pp. 3–14.

30 Trends in Telephone Service (Industry Analysis Division, Common Carrier Bureau, Federal Communications Commission, March

2000).

31 David McDermott, “Employment and other trends in the electric

services industry,” Monthly Labor Review, September 1999, pp. 3–8.

32 Laura Freeman, “Job creation and the emerging home computer

market,” Monthly Labor Review, August 1996, pp. 46–56.

33 Eric Newburger, “Computer use in the United States,” Current

Population Reports, Bureau of the Census, U.S. Department of Commerce, Economics and Statistics Administration, U.S. Census Bureau,

September 1999, on the Internet at http://www.census.gov/prod/

99pubs/p20-522.pdf (visited March 28, 2000).

34 Bureau of the Census, annual retail sales figures, Department of

Commerce, “Table 2: Estimated total annual retail sales: 1986 through

1999,” on the Internet at http://www.census.gov/svsd/retlann/view/

artssal.txt (visited December 13, 2000.)

35 Bureau of the Census, Retail e-commerce sales in third quarter

2000, Department of Commerce, “Estimate quarterly U.S. retail sales:

total and e-commerce,” on the Internet at http://www.census.gov/

mrts/www/current.html (visited June 5, 2000).

36 Evan Ramstad and J.C. Conklin, “Retailers offer parties and perks

to lure scare holiday help,” The Wall Street Journal, Nov. 29, 1999, pp.

B2–3.

37 Louise Lee, “More closings in store for retailers in ’96,” The Wall

Street Journal, Dec. 27, 1995.

38 Teri Agins, “Cheapskate Chic,” The Wall Street Journal, June 11,

1999, W1.

39 Ibid.

40 Laura Freeman, “Job creation,” pp. 46–56.

41 Bureau of the Census, annual retail sales, on the Internet at http:/

/www.census.gov/svsd/retlann/view/artssal.txt (visited June 1,

2000.)

42 Christopher Boyd, “Shopping for new ideas supermarkets are reinvented for convenience,” Sun–Sentinel, July 10, 1999, p. C9.

43 Teresa L. Morisi, “Commercial banking transformed by computer

technology,” Monthly Labor Review, August 1996, pp. 30–36.

44 Jonathon D. Glater and Frank Swoboda, “Taking a bite out of bank

jobs; the quest for convenience and lower costs, ATMs eat into services

provided by tellers,” The Washington Post, July 10, 1995, p. 1F.

45 Angela Clinton, “Flexible labor: restructuring the American work

force,” Monthly Labor Review, August 1997, pp. 3–17.

46 Teresa L. Morisi, “Commercial banking,” pp. 30–36.

47 Bureau of Labor Statistics, Office of Productivity, “Indexes of

output per employee, all published three-digit industries,” on the Internet

at ftp://ftp.bls.gov/pub/special.requests/opt/dipts/oae3din.txt (visited March 24,1999).

48 Jonathan Weil, “Financial-sector jobs rise, but little thanks to

banks,” The Wall Street Journal, Sept. 8, 1999, p. T1.

49 Virginia Churn, “Good times rolling on, official says mortgage

banking leader expects 1999 to be ‘the second best year,’” Richmond

Times–Dispatch, Feb. 7, 1999, p. K1.

50 Daniela Deane, “Web used by 37% of house hunters,” The Washington Post, May 10, 2000, p. E01.

 51 Ianthe Jeanne Dugan, “Surge in margin loans has some economists worried,” The Washington Post, Mar. 29, 2000, p. 1A. Many

companies such as Merrill Lynch earned record profits during the

1990s; for more information, see the Merrill Lynch website, on the

Internet at http://www.ml.com (visited June 22, 2000).

 52 For a more complete discussion, see U.S. Department of Labor,

Report on the American Workforce, 1999, ch. 1, pp. 5–36.

53 Rick Melchionno, “The changing temporary work force: Managerial, professional, and technical workers in the personnel supply services industry,” Occupational Outlook Quarterly, Spring 1999, pp. 24–

32.

54 U.S. Department of Labor, Report on the American Workforce,

1999, pp. 18–24.

55 Linda Davidson, “Maximize the return on temp staff investments,” Workforce, November 1999, pp. 58–60.

56 Sholnn Freeman,” Colleges reel as computer courses swell,” The

Wall Street Journal, July 1, 1998.

57 Laura Freeman, “Job creation,” pp. 46–56.

58 Olivia Crosby, “Working so others can play: Jobs in video game

development,” Occupational Outlook Quarterly, Summer 2000, pp.

2–13.

59 Plunkert, Lois, “Rapidly growing, high paying service sector industries: the U.S. experience,” Entrepreneurship Proceedings of a Joint

United States and European Seminar, February 2000, pp. 48–67.

60 Angela Clinton, “Flexible labor: restructuring the American work

force,” Monthly Labor Review, August 1997, pp. 3–27.

61 Cynthia Engel, “Health services industry: still a job machine?”

Monthly Labor Review, March 1999, pp. 3–14.

62 Laura Freeman, “Home-sweet-home health care,” Monthly Labor

Review, March 1995, pp. 3–11.

63 Bureau of the Census, Statistical Abstract of the Unites States 1999

(119th Edition) Washington, DC, 1999.

64 Laura A. Kelter, “Counting the counters: effects of Census 2000

on employment,” Monthly Labor Review, February 2000, pp. 24–29.

65 Enrollment figures are from the U.S. Department of Education,

National Center for Education Statistics, on the Internet at http://

nces.ed.gov/. Enrollment figures for 1999 are projections.

66 See for example, Shu Shin Luh, “Schools to recruit overseas shortages prompt deal with INS,” Chicago Sun–Times, Dec. 19, 1999; and

Jess McCuan, “Your career matters: You think your recruiting job is

tough?” The Wall Street Journal, July 20, 1999.

67 For a more complete discussion of the long-term decline in average weekly hours see, Katie Kirkland,” On the decline in average weekly

hours worked,” Monthly Labor Review, July 2000, pp. 26–31.