FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, SEPTEMBER 1, 2000

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, September 1, 2000
                              
                              
     Good morning.  I am pleased to be here to offer a few
comments on August labor market developments to supplement
the release of our employment and unemployment statistics
earlier this morning.
     
     On the whole, these first major economic indicators for
August point to continued moderation in job market activity.
While the unemployment rate has remained at or below 4.1
percent since last October, the pace of private-sector job
growth has slowed somewhat in recent months.
     
     Total payroll employment declined by 105,000 in August,
as another large decrease in the number of temporary census
workers outweighed private-sector job growth.  Private
employment rose just 17,000 in August, but to be properly
interpreted, this figure must be adjusted upward to account
for 87,000 communications workers who were on strike during
the survey reference period and hence not on payrolls.  Were
it not for the August strike effects, private payroll
employment would have risen by 102,000.  (The net strike
effect for August is 85,000 owing to a return to payrolls of
some 2,000 workers from an unrelated strike.)
     
     Some of the recent slowdown in private-sector job growth
is linked to a softening in the pace of construction
activity.  Construction employment was unchanged in August,
and, thus far this year, construction job growth has averaged
just 15,000 per month, compared with 25,000 jobs per month in
1999.
     
     August job growth also was dampened by a large decline
in manufacturing employment.  The loss of 79,000 jobs in
August exceeded the gain of 51,000 in July, when there were
fewer seasonal layoffs than usual.  Notably, employment fell
in several construction-related industries in August,
including lumber and furniture manufacturing.  There also was
a sizable reduction in the number of motor vehicle workers,
reflecting production cutbacks due to softening sales,
especially sales of heavy trucks and other large vehicles.
Employment in industrial machinery and electrical equipment,
both industries that have added jobs in recent months, held
steady in August, although the electronic components piece of
electrical equipment added 4,000 jobs.  The factory workweek
fell four-tenths of an hour to 41.3 hours in August, further
evidence of reduced activity in the nation's factories.
     
     In the service-producing sector of the economy, the
services industry added 160,000 jobs in August, well above
the average gain for the recent past.  Sizable employment
gains occurred in business services, social services, and
engineering and management services, all industries that had
lost jobs in July.  Wholesale trade, finance, and real
estate, three industries that have shown little or no
employment growth in recent months, each added about 10,000
jobs in August.  Employment in retail trade fell by 35,000,
reflecting a loss in eating and drinking places, but these
declines followed 2 months of strong job growth.  The
pronounced employment dip in communications reflects the
large strike in the industry.
     
     Highlighting some of the key indicators from our survey
of households, the unemployment rate, 4.1 percent in August,
has been virtually stationary since last fall.  Jobless rates
for most of the major worker groups held fairly steady over
the month and remain low by historical standards.  The rate
for teenagers has risen over the last 2 months but, given the
volatility of that measure, I am hesitant to read too much
into this movement.  In August, there were some 3.2 million
persons employed part time even though they would have
preferred full-time work, about the same number as a year
ago.  The number of marginally attached workers--persons who
have evidenced some attachment to the job market but are not
currently looking for work--was 1.1 million in August, the
same as a year earlier.



     In summary, even after adjusting for the reduction in
the number of temporary census workers and the August
communications strike, job growth in a number of industries
has slowed in recent months.  Nonetheless, the unemployment
rate remained near a 30-year low.



     My colleagues and I now would be glad to answer your
questions.