TEXT

 
 
                             FOR DELIVERY: 9:30 A.M., E.D.T.
                             FRIDAY, APRIL 7, 1995
 
 
 
 ___________________________________________________________
 Advance copies of this statement are made available to the
 press under lock-up conditions with the explicit
 understanding that the data are embargoed until 8:30 a.m.
 Eastern time.  ____________________________________________
 
 
                         Statement of
 
                     Katharine G. Abraham
                         Commissioner
                  Bureau of Labor Statistics
 
                          before the
 
                   Joint Economic Committee
 
                    UNITED STATES CONGRESS
 
                        April 7, 1995
 
 
 
 
 Mr. Chairman and Members of the Committee:
 
      I appreciate this opportunity to provide comments on
 
 the labor market data released this morning.
 
      Nonfarm payroll employment rose in March, and the
 
 unemployment rate was virtually unchanged at 5.5 percent.
 
 The growth in payroll employment totaled 203,000; this was
 
 well below February's increase and also about 100,000 below
 
 the average for the prior 12 months.
 
      The lion's share of the March increase occurred in
 
 construction and services.  Construction employment rose by
 
 58,000, as unseasonably mild temperatures prevailed over
 
 much of the nation.  The number of jobs in services grew by
 
 133,000, a gain much more in line with recent trends than
 
                              -2-
 
 
 
 
 February's 217,000 surge.  Within this diverse industry,
 
 health services had its largest job gain in a year;
 
 amusements and recreation also had a large increase, due
 
 partly to the mild weather.  Business services employment,
 
 which had risen sharply the previous month, was little
 
 changed.  The personnel supply component of business
 
 services hired fewer workers than normal in March, leading
 
 to a seasonally adjusted employment decrease of 35,000.
 
 This decline was offset by gains in other components, such
 
 as computer services, where hiring remained strong.
 
      Employment in finance, insurance, and real estate rose
 
 by 17,000 in March, recouping most of the job losses that
 
 occurred from last August through February.  All three
 
 components of this industry division contributed to the
 
 rise.  Retail employment was about unchanged, following a
 
 strong gain the month before.
 
      Manufacturing employment was flat in March.  From last
 
 October through January, monthly job gains in this industry
 
 had averaged in excess of 40,000, but the pace had slowed in
 
 February.  The March weakness was widespread and included
 
 declines in apparel and textiles.  Only industrial machinery
 
 continued to experience strong employment growth.  Both the
 
 manufacturing workweek and factory overtime declined by two-
 
 tenths of an hour in March, although they remained at very
 
 high levels.
 
                              -3-
 
 
 
 
      Turning to the data from the household survey, the
 
 employment situation of most major worker groups was little
 
 changed.  Among teenagers, employment grew by about a
 
 quarter of a million and the rate of unemployment declined.
 
 The overall unemployment rate has remained little changed
 
 since late last year, after having trended downward over the
 
 prior 2-1/2 years.
 
      The number of jobseekers who had been unemployed for 27
 
 weeks or more rose by 140,000 in March, offsetting a similar
 
 decline in February.  At 1.3 million, long-term unemployment
 
 is about 450,000 below its level of a year ago.  This group
 
 now comprises 19 percent of the total unemployed, twice the
 
 proportion prior to the onset of the last recession in mid-
 
 1990.  The higher share today is not clearly attributable to
 
 any one factor, although some of it may stem from the larger
 
 representation of managers and professionals and of middle-
 
 aged and older persons among the unemployed.  All of these
 
 groups tend to have longer-than-average job search periods.
 
      In summary, payroll employment rose moderately in
 
 March, with the growth concentrated in the services and
 
 construction industries.  Manufacturing employment was
 
 unchanged.  The unemployment rate, at 5.5 percent, was about
 
 the same as in the prior month.
 
 
 
      My colleagues and I will be happy to answer any
 
 questions you may have.