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                        Statement of
                              
                     Kathleen P. Utgoff
                        Commissioner
                 Bureau of Labor Statistics
                              
                    Friday, July 7, 2006


     Nonfarm payroll employment increased by 121,000 in
June, and the unemployment rate was unchanged at 4.6
percent.  During the second quarter of this year, payroll
employment growth averaged 108,000 per month, down from an
average monthly gain of 169,000 over the 12-month period
ending in March.  Average hourly earnings increased by 8
cents in June.

     In the service-providing sector of the economy, health
care employment continued to trend up over the month, with
an increase of 19,000.  Job gains occurred in hospitals,
doctors' offices, and nursing and residential care
facilities.  Over the past year, 278,000 jobs have been
added in health care.

     Employment in professional and business services also
continued to expand in June (+25,000).  Although the increase
was in line with average monthly job growth for the first 5
months of this year, it was well below the average monthly
gain for 2005 (+41,000).  Over the month, employment was up
in accounting services and in computer systems design.  The
job total in temporary help services edged lower in June.
Employment in the temporary help industry has drifted down
during the first half of this year, after trending up since
the spring of 2003.

     Local government employment was up in June (+24,000),
with most of the gain in functions other than education.
Government employment was essentially unchanged over the
month at the state and Federal levels.

     Elsewhere in the service-providing sector, employment
in food services continued to trend up in June, although
there appears to have been some moderation in the rate of
job growth in recent months.  Financial activities had
little job growth for the second month in a row; employment
in the industry had been expanding fairly steadily since mid-
2005.  Employment in retail trade was little changed in
June, following 2 months of sizable declines.  Within
retail, job losses in general merchandise stores have
totaled 61,000 over the past 3 months.

     In the goods-producing sector, manufacturing employment
edged up by 15,000 in June.  Some 55,000 jobs have been
added in the nation's factories (on net) since October 2005;
the gain has been concentrated in a few durable goods industries,
including machinery, fabricated metals, electrical equipment,
and transportation equipment.  Overall, the factory workweek
increased by 0.1 hour in June, while manufacturing overtime
was unchanged.

     Employment in mining rose in June, as hiring continued
in support activities for oil and gas operations.  Construction
employment essentially held steady for the fourth consecutive
month, reflecting recent moderation in residential construction
activity.

     Average hourly earnings for private sector production
and nonsupervisory workers increased by 8 cents in June,
following gains of 1 cent in May and 10 cents in April.
Over the year, average hourly earnings have risen by 3.9
percent.

     Turning to the data from the household survey, the
unemployment rate held at 4.6 percent in June, and the
number of unemployed persons was essentially unchanged at
7.0 million.  The number of long-term unemployed--those who
have been seeking jobs for 27 weeks or longer--fell by
217,000 over the month to 1.1 million.  The labor force
participation rate and the employment-population ratio were
little changed over the month at 66.2 and 63.1 percent,
respectively.

     In summary, nonfarm payroll employment rose by 121,000
in June, and the unemployment rate was unchanged at 4.6
percent.