Monthly Labor Review • March 2008 19

Payroll Employment in 2007

Robyn J. Richards is 

an economist in the 

Division of Current 

Employment Statistics. 

E-mail: richards.

robyn@bls.gov

Robyn J. Richards

Employment grew by just 0.8 percent in 2007, the lowest rate 

in 4 years; construction, manufacturing, retail trade, 

and transportation and warehousing were among the industries 

suffering losses, while health care, professional and technical services, 

food services and drinking places, and local government expanded

Payroll employment in 2007:

job growth slows

Nonfarm payroll employment, as 

measured by the Current Employment Statistics (CES) survey, increased by slightly more than 1 million in 

2007, to a level of 138.1 million.1 Job growth 

slowed from 1.6 percent in 2006 to 0.8 percent in 2007, the lowest annual growth rate 

since 2003. (See chart 1.)

Employment trends varied by industry. 

(See table 1.) Deceleration in the housing 

market and problems with subprime mortgages had a negative effect on employment 

in construction and other housing-related industries. Manufacturing continued its longterm contraction, while health care, professional and technical services, food services 

and drinking places, and local government 

continued to expand. Employment services, 

which had hit a high point in August 2006, 

lost jobs throughout most of 2007. Increased 

prices for crude oil and related commodities spurred growth in oil and gas extraction. 

However, high fuel prices and weakened 

consumer confidence were reflected in constrained job growth in retail trade and in 

transportation and warehousing.

Signs of a sluggish economy

Many economic indicators pointed to a sluggish economy in 2007. (See table 2.) The 

1-month diffusion index for total private 

employment fell below 50 for the first time 

since 2003. This index is based on the number 

of industries adding or subtracting jobs. An 

index value above 50 indicates that more industries are adding than losing jobs, whereas 

a value below 50 indicates that more industries are losing than adding jobs. The Conference Board’s leading index, which ticked 

down in the first half of 2007, saw declines 

accelerate in the fourth quarter.2 The leading 

index is composed of 10 economic indicators, including CES average weekly hours 

in manufacturing, that usually peak or bottom ahead of the business cycle. The factory 

workweek was unchanged over the year, and 

overtime hours edged down. The Conference 

Board’s coincident index, which includes four 

indicators that tend to move with the business cycle, registered minimal gains in 2007.3

Average weekly hours for private industries 

have remained essentially flat since the end 

of 2001, and the rate of growth for the index 

of private aggregate weekly hours slowed in 

2007 to less than half that of the previous 3 

years. The index of aggregate weekly payrolls 

rose at the slowest rate since 2003, while real 

average hourly earnings declined almost a 

full percentage point over the year.4

Declines in several industries accounted 

for much of the slowing in overall employment growth. Over the year, employment 

services lost 131,000 jobs and ended 2007 
Payroll Employment in 2007

20 Monthly Labor Review • March 2008

almost 4 percent below its most recent peak of 3.7 million 

employees. (See chart 2.) Temporary help services, which 

gained 16,000 employees in 2006, cut employment by 

79,000, or 3.0 percent of its workforce, in 2007.

Shedding more than one-quarter million jobs in 2007, 

manufacturing experienced its steepest decline since 2003. 

None of the diffusion indexes (1-, 3-, 6-, and 12-month) 

for manufacturing were able to climb above 50 in 2007. 

The 1-month diffusion index hit a 43-month low of 29.8 

in April and ended the year 7.6 percent lower than in 

December 2006. Reducing employment by 79,000, motor vehicles and parts posted its largest annual loss since 

2001, almost 8 percent of the industry’s workforce. Machinery employment, which had been a bright spot for 

manufacturing, was essentially flat over the year. Computer and electronic products trimmed its workforce in 

2007 by 40,000, or almost 2 times the previous 3 years’ 

losses combined.

Crude oil and gasoline prices reached all-time highs in 

2007. Petroleum and coal products manufacturing employment contracted by 3,000 employees, and gasoline stations 

lost 12,000. Prices for crude oil, nearing $100 per barrel, 

ended 2007 more than 50 percent higher than at the end 

of 2006. At $3.05 per gallon, average gasoline prices across 

the Nation were more than 70 cents higher at the end of 

2007 than at the end of 2006.5 Consumers worried about 

rising fuel costs and shopped less.6 Average monthly employment gains in clothing and clothing accessories stores 

dropped from 5,000 in 2006 to less than 2,000 in 2007. 

The transportation and warehousing industry, which benefits from increases in retail and manufacturing, expanded 

by almost 3 percent in 2006, but was virtually flat in 2007. 

Truck transportation, which accounts for almost one-third 

of employment in transportation and warehousing, lost 

27,000 payroll jobs in 2007. Employment growth in mining slowed in 2007, to slightly more than half that of 2006. 

This slowdown was largely in support activities for mining, in which employment had expanded by 16.9 percent 

in 2006, but grew by only 6.1 percent in 2007. Growth 

in this sector has been constrained by infrastructure, with 

the number of operable oil refineries in the United States 

declining since 1982 and stagnant since 2003.7

Constituting more than two-thirds of the gross domestic product (GDP), consumer spending (personal 

consumption expenditures) was the primary force in the 

expansion of the U.S. economy in 2007.8 Real consumer 

spending grew by 2.9 percent, the slowest rate since 2003; 

and GDP excluding consumer spending barely moved, at 

Chart 1. Total nonfarm employment, 12-month percent change, seasonally adjusted, 2000–07

2000

Note: Shaded area denotes NBER-designated recession.

Percent

3.0

2.0

1.0

0.0

 –1.0

 –2.0

2001

Percent

3.0

2.0

1.0

0.0

 –1.0

 –2.0

2002 2003 2004 2005 2006 2007
Monthly Labor Review • March 2008 21

Table 1. Employees on nonfarm payrolls, by industry, seasonally adjusted, 2004–07

Industry

Dec.

2004

Dec.

2006

 Total nonfarm.............. 132,351 134,883 136,982 138,078 2,532 1.9 2,099 1.6 1,096 .8

 Total private................... 110,637 112,996 114,899 115,745 2,359 2.1 1,903 1.7 846 .7

 Goods-producing.............. 22,014 22,402 22,436 21,976 388 1.8 34 .2 –460 –2.1

Natural resources and mining ... 602 652 706 739 50 8.3 54 8.3 33 4.7

 Logging............................... 67.1 64.8 62.4 60.6 –2.3 –3.4 –2.4 –3.7 –1.8 –2.9

Mining ..................................... 534.5 586.7 643.3 677.9 52.2 9.8 56.6 9.6 34.6 5.4

 Oil and gas extraction ........... 124.9 128.4 139.8 153.1 3.5 2.8 11.4 8.9 13.3 9.5

 Mining, except oil and gas .... 207.0 216.7 221.0 225.2 9.7 4.7 4.3 2.0 4.2 1.9

 Coal mining......................... 71.2 75.9 77.9 78.3 4.7 6.6 2.0 2.6 .4 .5

 Support activities for mining .. 202.6 241.6 282.5 299.6 39.0 19.2 40.9 16.9 17.1 6.1

Construction............................. 7,125 7,545 7,697 7,465 420 5.9 152 2.0 –232 –3.0

 Construction of buildings....... 1,672.0 1,772.3 1,798.1 1,702.4 100.3 6.0 25.8 1.5 –95.7 –5.3

 Residential building............. 928.0 995.8 993.9 902.0 67.8 7.3 –1.9 –.2 –91.9 –9.2

 Nonresidential building ....... 744.0 776.5 804.2 800.4 32.5 4.4 27.7 3.6 –3.8 –.5

 Heavy and civil engineering 

 construction ........................ 917.7 961.9 1,001.6 993.8 44.2 4.8 39.7 4.1 –7.8 –.8

 Specialty trade contractors ... 4,535.6 4,811.0 4,896.9 4,768.4 275.4 6.1 85.9 1.8 –128.5 –2.6

 Residential specialty trade 

 contractors........................ 2,199.6 2,405.8 2,348.1 2,201.1 206.2 9.4 –57.7 –2.4 –147.0 –6.3

 Nonresidential specialty 

 trade contractors............... 2,336.0 2,405.2 2,548.8 2,567.3 69.2 3.0 143.6 6.0 18.5 .7

Manufacturing .......................... 14,287 14,205 14,033 13,772 –82 –.6 –172 –1.2 –261 –1.9

 Durable goods ........................ 8,954 8,973 8,925 8,739 19 .2 –48 –.5 –186 –2.1

 Wood products...................... 555.6 568.9 536.5 507.2 13.3 2.4 –32.4 –5.7 –29.3 –5.5

 Nonmetallic mineral products. 509.3 506.3 508.2 496.4 –3.0 –.6 1.9 .4 –11.8 –2.3

 Primary metals ...................... 468.3 463.8 459.4 452.2 –4.5 –1.0 –4.4 –.9 –7.2 –1.6

 Fabricated metal products .... 1,510.8 1,533.5 1,562.9 1,562.7 22.7 1.5 29.4 1.9 –.2 .0

 Machinery ............................. 1,150.6 1,172.5 1,187.2 1,191.0 21.9 1.9 14.7 1.3 3.8 .3

 Computer and electronic 

 products.............................. 1,315.5 1,311.1 1,297.6 1,257.6 –4.4 –.3 –13.5 –1.0 –40.0 –3.1

 Computer and peripheral 

 equipment......................... 204.1 201.6 193.7 185.4 –2.5 –1.2 –7.9 –3.9 –8.3 –4.3

 Communications equipment . 142.2 140.6 131.1 129.0 –1.6 –1.1 –9.5 –6.8 –2.1 –1.6

 Semiconductors and 

 electronic components...... 451.2 453.0 453.8 434.9 1.8 .4 .8 .2 –18.9 –4.2

 Electronic instruments ........ 440.9 440.9 447.2 443.7 .0 .0 6.3 1.4 –3.5 –.8

 Electrical equipment and 

 appliances........................... 442.2 430.0 430.9 423.8 –12.2 –2.8 .9 .2 –7.1 –1.6

 Transportation equipment ..... 1,775.9 1,774.4 1,749.3 1,684.7 –1.5 –.1 –25.1 –1.4 –64.6 –3.7

 Motor vehicles and parts..... 1,111.0 1,087.9 1,041.9 962.6 –23.1 –2.1 –46.0 –4.2 –79.3 –7.6

 Furniture and related 

 products.............................. 576.3 567.3 546.3 523.8 –9.0 –1.6 –21.0 –3.7 –22.5 -4.1

 Miscellaneous manufacturing 649.7 645.4 646.4 639.9 –4.3 –.7 1.0 .2 –6.5 –1.0

 Nondurable goods .................. 5,333 5,232 5,108 5,033 –101 –1.9 –124 –2.4 –75 –1.5

 Food manufacturing.............. 1,482.8 1,479.3 1,473.4 1,486.3 –3.5 –.2 –5.9 –.4 12.9 .9

 Beverages and tobacco 

 products.............................. 193.8 192.5 194.7 192.0 –1.3 –.7 2.2 1.1 –2.7 –1.4

 Textile mills............................ 230.1 207.8 183.8 163.0 –22.3 –9.7 –24.0 –11.5 –20.8 –11.3

 Textile product mills............... 179.6 173.6 162.1 155.7 –6.0 –3.3 –11.5 –6.6 –6.4 –3.9

 Apparel ................................. 266.5 240.0 224.9 204.8 –26.5 –9.9 –15.1 –6.3 –20.1 –8.9

 Leather and allied products.... 40.0 39.8 34.9 33.7 –.2 –.5 –4.9 –12.3 –1.2 –3.4

 Paper and paper products .... 489.9 476.6 465.1 460.3 –13.3 –2.7 –11.5 –2.4 –4.8 –1.0

 Printing and related support 

 activities .............................. 655.0 639.0 633.5 619.5 –16.0 –2.4 –5.5 –.9 –14.0 –2.2

 Petroleum and coal products . 111.7 111.0 114.4 111.7 –.7 –.6 3.4 3.1 –2.7 –2.4

 Chemicals ............................. 880.7 867.3 864.8 862.0 –13.4 –1.5 –2.5 –.3 –2.8 –.3

 Plastics and rubber products.. 802.7 805.0 756.6 744.2 2.3 .3 –48.4 –6.0 –12.4 –1.6

Dec.

2007 2004–05 Dec.

2005

Employment change, December to December

2005–06 2006–07

Percent Level

 (thousands) Percent Level

 (thousands) Percent

Level

 (thousands)

See footnote at end of table. 
Payroll Employment in 2007

22 Monthly Labor Review • March 2008

Table 1. Continued—Employees on nonfarm payrolls, by industry, seasonally adjusted, 2004–07

Industry

Dec.

2004

Dec.

2006

 Service-providing.............. 110,337 112,481 114,546 116,102 2,144 1.9 2,065 1.8 1,556 1.4

 Private service-providing . 88,623 90,594 92,463 93,769 1,971 2.2 1,869 2.1 1,306 1.4

Trade, transportation, and 

 utilities ................................... 25,687 26,129 26,456 26,658 442 1.7 327 1.3 202 .8

 Wholesale trade...................... 5,708.6 5,821.2 5,969.2 6,072.9 112.6 2.0 148.0 2.5 103.7 1.7

 Durable goods....................... 2,968.1 3,035.9 3,098.9 3,145.0 67.8 2.3 63.0 2.1 46.1 1.5

 Nondurable goods................. 2,020.4 2,024.4 2,057.1 2,089.3 4.0 .2 32.7 1.6 32.2 1.6

 Electronic markets and agents 

 and brokers......................... 720.1 760.9 813.2 838.6 40.8 5.7 52.3 6.9 25.4 3.1

 Retail trade ............................. 15,125.4 15,356.915,412.8 15,487.8 231.5 1.5 55.9 .4 75.0 .5

 Motor vehicle and parts 

 dealers................................ 1,908.1 1,914.2 1,912.7 1,909.3 6.1 .3 –1.5 –.1 –3.4 –.2

 Automobile dealers............. 1,256.2 1,254.4 1,244.7 1,244.6 –1.8 –.1 –9.7 –.8 –.1 .0

 Furniture and home furnishings 

 stores .................................. 572.1 579.2 587.1 584.5 7.1 1.2 7.9 1.4 –2.6 –.4

 Electronics and appliance 

 stores .................................. 519.9 549.5 536.6 540.4 29.6 5.7 –12.9 –2.3 3.8 .7

 Building material and garden 

 supply stores....................... 1,251.4 1,301.4 1,317.5 1,271.6 50.0 4.0 16.1 1.2 –45.9 –3.5

 Food and beverage stores .... 2,808.7 2,817.1 2,827.4 2,871.9 8.4 .3 10.3 .4 44.5 1.6

 Health and personal care 

 stores .................................. 942.0 963.3 974.0 999.9 21.3 2.3 10.7 1.1 25.9 2.7

 Gasoline stations .................. 869.6 869.6 862.2 850.5 .0 .0 –7.4 –.9 –11.7 –1.4

 Clothing and clothing 

 accessories stores.............. 1,369.2 1,435.5 1,490.6 1,508.6 66.3 4.8 55.1 3.8 18.0 1.2

 Sporting goods, hobby, book, 

 and music stores................. 640.8 649.4 648.5 661.6 8.6 1.3 –.9 –.1 13.1 2.0

 General merchandise stores.. 2,908.5 2,951.4 2,942.0 2,976.7 42.9 1.5 –9.4 –.3 34.7 1.2

 Department stores .............. 1,609.5 1,583.7 1,553.6 1,568.4 –25.8 –1.6 –30.1 –1.9 14.8 1.0

 Miscellaneous store retailers . 907.2 891.9 872.0 866.3 –15.3 –1.7 –19.9 –2.2 –5.7 –.7

 Nonstore retailers.................. 427.9 434.4 442.2 446.5 6.5 1.5 7.8 1.8 4.3 1.0

 Transportation and 

 warehousing ....................... 4,297.4 4,399.7 4,525.0 4,539.9 102.3 2.4 125.3 2.8 14.9 .3

 Air transportation................... 510.4 484.7 490.5 502.1 –25.7 –5.0 5.8 1.2 11.6 2.4

 Rail transportation................. 227.9 226.3 232.0 232.5 –1.6 –.7 5.7 2.5 .5 .2

 Water transportation.............. 56.4 63.4 64.4 64.4 7.0 12.4 1.0 1.6 .0 .0

 Truck transportation .............. 1,369.1 1,414.2 1,449.7 1,423.1 45.1 3.3 35.5 2.5 –26.6 –1.8

 Transit and ground passenger 

 transportation...................... 389.2 394.2 401.1 411.8 5.0 1.3 6.9 1.8 10.7 2.7

 Pipeline transportation .......... 37.8 37.9 39.0 40.8 .1 .3 1.1 2.9 1.8 4.6

 Scenic and sightseeing 

 transportation...................... 27.7 26.9 26.8 31.3 –.8 –2.9 –.1 –.4 4.5 16.8

 Support activities for 

 transportation...................... 547.4 560.4 575.3 587.1 13.0 2.4 14.9 2.7 11.8 2.1

 Couriers and messengers..... 559.9 576.5 590.3 588.1 16.6 3.0 13.8 2.4 –2.2 –.4

 Warehousing and storage..... 571.6 615.2 655.9 658.7 43.6 7.6 40.7 6.6 2.8 .4

 Utilities .................................... 555.7 550.9 549.1 557.1 –4.8 –.9 –1.8 –.3 8.0 1.5

Information ............................... 3,080 3,054 3,033 3,018 –26 –.8 –21 –.7 –15 –.5

 Publishing industries, except 

 Internet................................ 903.8 903.3 902.2 889.7 –.5 –.1 –1.1 –.1 –12.5 –1.4

 Motion picture and sound 

 recording industries ............ 375.9 383.5 375.0 376.3 7.6 2.0 –8.5 –2.2 1.3 .3

 Broadcasting, except 

 Internet................................ 327.2 327.9 328.1 321.9 .7 .2 .2 .1 –6.2 –1.9

 Telecommunications ............. 1,090.5 1,056.8 1,041.6 1,026.8 –33.7 –3.1 –15.2 –1.4 –14.8 –1.4

 Data processing, hosting 

 and related services............ 265.1 262.6 264.4 273.5 –2.5 –.9 1.8 .7 9.1 3.4

 Other information services .... 117.0 120.3 121.4 129.3 3.3 2.8 1.1 .9 7.9 6.5

Dec.

2007 2004–05 Dec.

2005

Employment change, December to December

2005–06 2006–07

Percent Level

 (thousands) Percent Level (thousands) Percent Level

 (thousands)

See footnote at end of table. 
Monthly Labor Review • March 2008 23

Table 1. Continued—Employees on nonfarm payrolls, by industry, seasonally adjusted, 2004–07

Industry

Dec.

2004

Dec.

2006

Financial activities .................... 8,084 8,250 8,356 8,252 166 2.1 106 1.3 –104 –1.2

 Finance and insurance............ 5,974.8 6,091.0 6,180.7 6,111.2 116.2 1.9 89.7 1.5 –69.5 –1.1

 Monetary authorities—

 central bank ........................ 21.0 20.9 21.3 20.7 –.1 –.5 .4 1.9 –.6 –2.8

 Credit intermediation and 

 related activities.................. 2,835.8 2,901.8 2,931.5 2,829.2 66.0 2.3 29.7 1.0 –102.3 –3.5

 Depository credit 

 intermediation................... 1,754.1 1,780.0 1,820.7 1,824.6 25.9 1.5 40.7 2.3 3.9 .2

 Commercial banking......... 1,285.7 1,301.9 1,344.7 1,345.9 16.2 1.3 42.8 3.3 1.2 .1

 Securities, commodity 

 contracts, investments ........ 778.8 797.3 834.5 856.7 18.5 2.4 37.2 4.7 22.2 2.7

 Insurance carriers and related 

 activities .............................. 2,257.5 2,285.3 2,305.1 2,316.8 27.8 1.2 19.8 .9 11.7 .5

 Funds, trusts, and other 

			 	 financial vehicles................. 81.7 85.7 88.3 87.8 4.0 4.9 2.6 3.0 –.5 –.6

 Real estate and rental 

 and leasing............................ 2,108.9 2,159.1 2,175.3 2,140.6 50.2 2.4 16.2 .8 –34.7 –1.6

 Real estate............................. 1,437.9 1,488.7 1,501.2 1,476.4 50.8 3.5 12.5 .8 –24.8 –1.7

 Rental and leasing services... 645.3 642.7 645.4 633.6 –2.6 –.4 2.7 .4 –11.8 –1.8

 Lessors of nonfinancial

 intangible assets ................... 25.7 27.7 28.7 30.6 2.0 7.8 1.0 3.6 1.9 6.6

Professional and business 

 services ................................. 16,600 17,277 17,824 18,131 677 4.1 547 3.2 307 1.7

 Professional and technical 

 services................................. 6,869.7 7,180.7 7,498.9 7,820.5 311.0 4.5 318.2 4.4 321.6 4.3

 Legal services..................... 1,167.5 1,169.2 1,177.4 1,173.9 1.7 .1 8.2 .7 –3.5 –.3

 Accounting and bookkeeping 

 services ............................ 813.0 875.8 917.3 993.3 62.8 7.7 41.5 4.7 76.0 8.3

 Architectural and engineering 

 services ............................ 1,282.2 1,344.9 1,410.5 1,460.4 62.7 4.9 65.6 4.9 49.9 3.5

 Computer systems design 

 and related services ......... 1,182.5 1,229.0 1,319.2 1,391.4 46.5 3.9 90.2 7.3 72.2 5.5

 Management and technical 

 consulting services ........... 786.6 854.9 914.7 994.3 68.3 8.7 59.8 7.0 79.6 8.7

 Management of companies 

 and enterprises ..................... 1,744.9 1,774.2 1,829.6 1,847.8 29.3 1.7 55.4 3.1 18.2 1.0

 Administrative and waste 

 services................................. 7,985.1 8,321.9 8,495.0 8,462.8 336.8 4.2 173.1 2.1 –32.2 –.4

 Administrative and support 

 services............................... 7,651.7 7,979.8 8,144.1 8,099.3 328.1 4.3 164.3 2.1 –44.8 –.6

 Employment services.......... 3,488.9 3,701.1 3,697.8 3,566.9 212.2 6.1 –3.3 –.1 –130.9 –3.5

 Temporary help services... 2,434.2 2,641.4 2,657.1 2,578.5 207.2 8.5 15.7 .6 –78.6 –3.0

 Business support services.. 767.0 766.8 812.3 803.7 –.2 .0 45.5 5.9 –8.6 –1.1

 Services to buildings and 

 dwellings........................... 1,703.1 1,768.9 1,824.8 1,872.0 65.8 3.9 55.9 3.2 47.2 2.6

 Waste management and 

 remediation services........... 333.4 342.1 350.9 363.5 8.7 2.6 8.8 2.6 12.6 3.6

Education and health services .. 17,144 17,573 18,040 18,568 429 2.5 467 2.7 528 2.9

 Educational services............... 2,802.3 2,862.8 2,910.2 2,984.5 60.5 2.2 47.4 1.7 74.3 2.6

 Health care and social 

 assistance............................. 14,341.3 14,709.7 15,130.1 15,583.2 368.4 2.6 420.4 2.9 453.1 3.0

 Health care ............................. 12,170.1 12,436.1 12,757.7 13,109.6 266.0 2.2 321.6 2.6 351.9 2.8

 Ambulatory health care 

 services............................... 5,031.7 5,187.6 5,374.8 5,566.0 155.9 3.1 187.2 3.6 191.2 3.6

			 	 	 Offices of physicians......... 2,068.2 2,117.5 2,172.1 2,235.6 49.3 2.4 54.6 2.6 63.5 2.9

 Outpatient care centers .... 460.1 483.1 500.8 513.0 23.0 5.0 17.7 3.7 12.2 2.4

 Home health care services . 801.7 839.2 885.7 930.9 37.5 4.7 46.5 5.5 45.2 5.1

 Hospitals ............................... 4,301.5 4,379.1 4,460.8 4,572.4 77.6 1.8 81.7 1.9 111.6 2.5

Dec.

2007 2004–05 Dec.

2005

Employment change, December to December

2005–06 2006–07

Percent Level

 (thousands) Percent Level

 (thousands) Percent

Level

 (thousands)

See footnote at end of table. 
Payroll Employment in 2007

24 Monthly Labor Review • March 2008

0.5 percent in 2007.9 Between 2003 and 2006, when total 

nonfarm employment growth was stronger, GDP excluding consumer spending growth was stronger, averaging 

2.7 percent. Both consumer spending and GDP excluding 

consumer spending exhibit similar patterns that coincide 

with previous periods of weak employment growth. (For 

the movement of GDP, see chart 3.)

As interest rates rose, adjustable-rate loan payments increased and discretionary income decreased.10 Consumer 

sentiment, often seen as a proxy for future spending, was 

depressed and ended the year at its lowest level since October 2005. (See table 2.)

Americans curbed their appetites for spending by dining out less and eating at home more. (See chart 4.) Employment in food manufacturing grew for the first time 

since 1999. Compared with 2006 figures, food and beverage stores’ average monthly job growth quadrupled in 

2007, with 4,000 jobs added per month. Food services and 

drinking places added 25,000 jobs per month in 2007, but 

the rate of growth was unchanged from 2006.

Table 1. Continued—Employees on nonfarm payrolls, by industry, seasonally adjusted, 2004–07

Industry

Dec.

2004

Dec.

2006

 Nursing and residential care 

 facilities............................. 2,836.9 2,869.4 2,922.1 2,971.2 32.5 1.1 52.7 1.8 49.1 1.7

 Nursing care facilities ....... 1,578.0 1,578.9 1,590.0 1,608.2 .9 .1 11.1 .7 18.2 1.1

 Social assistance .................. 2,171.2 2,273.6 2,372.4 2,473.6 102.4 4.7 98.8 4.3 101.2 4.3

 Child day care services .... 774.9 805.8 833.4 857.1 30.9 4.0 27.6 3.4 23.7 2.8

Leisure and hospitality ............. 12,632 12,907 13,288 13,635 275 2.2 381 3.0 347 2.6

 Arts, entertainment, and 

 recreation.............................. 1,853.1 1,903.5 1,958.0 2,010.3 50.4 2.7 54.5 2.9 52.3 2.7

 Performing arts and spectator 

 sports ................................. 367.7 379.6 403.7 429.9 11.9 3.2 24.1 6.3 26.2 6.5

 Museums, historical sites, 

 zoos, and parks .................. 118.6 121.1 126.3 131.5 2.5 2.1 5.2 4.3 5.2 4.1

 Amusements, gambling, and 

 recreation............................ 1,366.8 1,402.8 1,428.0 1,448.9 36.0 2.6 25.2 1.8 20.9 1.5

 Accommodation and food 

 services................................. 10,778.5 11,003.5 11,330.0 11,624.7 225.0 2.1 326.5 3.0 294.7 2.6

 Accommodation .................... 1,805.2 1,820.3 1,859.0 1,858.1 15.1 .8 38.7 2.1 –.9 .0

 Food services and drinking 

 places ................................. 8,973.3 9,183.2 9,471.0 9,766.6 209.9 2.3 287.8 3.1 295.6 3.1

Other services .......................... 5,396 5,404 5,466 5,507 8 .1 62 1.1 41 .8

 Repair and maintenance....... 1,229.5 1,239.8 1,253.3 1,255.5 10.3 .8 13.5 1.1 2.2 .2

 Personal and laundry 

 services............................... 1,276.2 1,277.8 1,299.0 1,306.9 1.6 .1 21.2 1.7 7.9 .6

 Membership associations 

 and organizations ............... 2,889.9 2,886.3 2,913.5 2,944.4 –3.6 –.1 27.2 .9 30.9 1.1

Government ............................. 21,714 21,887 22,083 22,333 173 .8 196 .9 250 1.1

 Federal ................................. 2,729 2,732 2,725 2,735 3 .1 –7 –.3 10 .4

 Federal, except U.S. Postal 

 Service................................ 1,952.4 1,958.3 1,957.9 1,972.3 5.9 .3 –.4 .0 14.4 .7

 U.S. Postal Service............... 776.2 774.1 766.8 763.1 –2.1 –.3 –7.3 –.9 –3.7 –.5

 State government ................... 5,012 5,071 5,098 5,153 59 1.2 27 .5 55 1.1

 State government education.. 2,252.0 2,292.4 2,307.8 2,332.5 40.4 1.8 15.4 .7 24.7 1.1

 State government, excluding 

 education ............................ 2,760.4 2,778.9 2,790.2 2,820.9 18.5 .7 11.3 .4 30.7 1.1

 Local government ................... 13,973 14,084 14,260 14,445 111 .8 176 1.2 185 1.3

 Local government education.. 7,809.1 7,884.2 7,953.1 8,016.5 75.1 1.0 68.9 .9 63.4 .8

 Local government, excluding 

 education ............................ 6,164.0 6,199.9 6,307.1 6,428.2 35.9 .6 107.2 1.7 121.1 1.9

Dec.

2007 2004–05 Dec.

2005

Employment change, December to December

2005–06 2006–07

Percent Level

 (thousands) Percent Level

 (thousands) Percent

Level

 (thousands)

NOTE: Consistent with other CES publications, employment data 

are rounded to thousands for supersectors and selected aggregate 

industries and to hundreds for more detailed industries.
Monthly Labor Review • March 2008 25

Spending on personal care services also declined with the 

decrease in discretionary income.11 The decreased spending led 

to lower employment growth in personal and laundry services, 

which had gained more than 21,000 employees in 2006, but 

added less than 8,000 in 2007. In contrast, employment in 

health and personal care stores more than doubled its rate of 

growth, from 1.1 percent in 2006 to 2.7 percent in 2007.

Employment in construction and housing 

The housing bubble started to burst in 2006 and worsened 

throughout 2007. Investment in residential construction 

was reduced. The average number of new housing units 

started per month declined, annual sales of new homes 

fell for the first time since 2001, and vacancy rates rose to 

their highest level ever.12 Homes began to depreciate, and 

mortgage interest rates hit a 4-year high.13

Residential construction employment peaked at nearly 

3.5 million in April 2006, after which the industry lost 

342,000 jobs by December 2007. Housing starts suffered 

a 44.8-percent reduction, and residential construction expenditures decreased more than 30 percent. During previous downturns in residential construction employment, 

nonresidential construction was able to mitigate the decline. However, nonresidential construction employment, 

which grew at more than 5 percent in 2006, was essentially 

flat in 2007, culminating in an overall loss of 232,000 jobs 

for the construction industry in the latter year. The only 

Table 2. Economic indicators, 2003–07

Indicator

Dec.

2003

Dec.

2005

The Conf

Leading index.................................. 114.5 136.9 138.5 138.4 136.0 8.0 6.9 –2.4 –1.7

Coincident index.............................. 115.8 120.3 121.6 123.4 125.1 2.5 2.1 1.7 1.4

	Consumer confidence index............ 94.8 102.7 103.8 110.0 90.6 5.1 5.1 –19.4 –17.6

 Reuters—University of Michigan

Consumer sentiment index ............. 92.6 97.1 91.5 91.7 75.5 –.3 –.2 –16.2 –17.7

 Bureau of Labor Statistics (CES)

Employment diffusion index, 

 1-month span

 Total private.................................. 52.9 51.8 54.7 56.0 48.5 1.0 2.0 –7.5 –13.4

 Manufacturing .............................. 41.7 39.9 47.0 39.3 36.3 –.8 –1.0 –3.0 –7.6

Average weekly hours 

 of production workers

 Total private.................................. 33.6 33.8 33.8 33.9 33.8 .1 .3 –.1 –.3

 Manufacturing .............................. 40.7 40.6 40.8 41.1 41.1 .1 .3 .0 .0

 Manufacturing, including overtime 45.2 45.1 45.4 45.3 45.1 .0 .1 –.2 –.4

Index of aggregate weekly hours 

(2002 = 100)

 Total private production workers .. 98.6 101.5 104.2 106.7 107.8 2.7 2.7 1.1 1.0

Index of aggregate weekly payrolls 

 (2002 = 100)

 Total private production workers .. 102.0 107.7 114.0 121.7 127.5 6.6 6.1 5.8 4.8

Average hourly earnings of 

 production workers

 Total private current dollars.......... 15.48 15.87 16.37 17.07 17.70 .53 3.32 .63 3.69

 Total private constant (1982) 

 dollars1 ....................................... 8.29 8.21 8.18 8.33 8.27 .01 .17 –.06 –.72

1 The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used to deflate this series.

Dec.

2006

Dec.

2007

Dec.

2004

December to December

Average annual

change,

2003–06

Annual change,

2006–07

Level Percent Level Percent
Payroll Employment in 2007

26 Monthly Labor Review • March 2008

component in construction that posted a gain in 2007 was 

nonresidential specialty trade contractors, which added 

19,000 employees to the payrolls; however, even its rate of 

growth diminished from 6.0 in 2006 to 0.7 in 2007.

Homeowners began to feel the crunch as interest rates 

rose in 2007. The subprime lending market, which was especially vulnerable to an increase in interest rates and payment structures, began to founder. Subprime mortgages 

accounted for more than half of all new foreclosures in 

2007.14 Delinquency rates were at their highest level since 

1985.15 The rate of foreclosure starts and the percentage 

of loans in the process of foreclosure were at their highest 

levels ever. Even though delinquency rates on prime mortgages (3.2 percent) remained low compared with those on 

subprime mortgages (17.3 percent), lenders became risk 

averse and worked with Federal financial regulatory agencies to implement stricter lending practices.16 The Federal 

financial regulatory agencies issued a “Statement on Subprime Mortgage Lending” to address issues that might 

cause payment shock in relation to certain adjustable-rate 

mortgage products, and the resulting policies prevented 

large numbers of people from qualifying for mortgages.17

The year 2007 proved to be difficult for employment in 

construction and housing-related industries.

Seventy percent of housing-related employment is 

composed of nonconstruction industries, which also suffered cutbacks as a result of the declining housing market.18 (See table 3 and chart 5.) Manufacturers of building 

materials such as wood products and nonmetallic mineral 

products cut 42,000 jobs. Building-related wood products 

include cut lumber, plywood, and wood trusses; and nonmetallic mineral products include clay, cement, and brick 

products.19 Retail home centers, which include building 

materials and home improvement centers, reduced employment by 28,000. Manufacturers of furniture and related products, including cabinetry, shed 23,000 jobs from 

the payrolls. Logging and the wholesale trade of lumber 

and construction products cut a total of 12,000 employees, 

and employment in furniture stores was virtually flat over 

the year.

Financial activities lost 149,000 jobs in 2007. More than 

three-quarters of the loss was attributable to the credit 

intermediation and related activities component, which 

includes real estate credit and mortgage loan brokers. The 

National Association of Realtors stated that 2007 sales of 

existing homes were at “the lowest pace since [the organization] began tracking the combined series in 1999.”20

Other financial industries that bore the consequences of 

Chart 2. Employment services, seasonally adjusted, 2000–07

2000

Note: Shaded area denotes NBER-designated recession.

Thousands

4,000

3,800

3,600

3,400

3,200

3,000

2001 2002 2003 2004 2005 2006 2007

Thousands

4,000

3,800

3,600

3,400

3,200

3,000
Monthly Labor Review • March 2008 27

Chart 3. Annual growth rates, gross domestic product and total nonfarm employment, 1967–2007

1967

 Note: Gross domestic product is in billions of chained 2000 dollars. Total nonfarm employment is seasonally 

adjusted.

1972 1977 1982 1987 1992 1997 2002 2007

Percent

8.0

6.0

2.0

0.0

–2.0

–4.0

4.0

Percent

8.0

6.0

2.0

0.0

–2.0

–4.0

4.0

 Source: U.S. Bureau of Economic Analysis. 

Gross domestic product

Total nonfarm employment

Chart 4. Food and beverage stores and food services and drinking places, 12-month percent change

 in employment, seasonally adjusted, 2000–07

2000

Note: Shaded area denotes NBER-designated recession.

Percent

3.0

2.0

1.0

0.0

 –1.0

 –2.0

2001

Percent

3.0

2.0

1.0

0.0

 –1.0

 –2.0

2002 2003 2004 2005 2006 2007

 –3.0

4.0

 –3.0

4.0

Food and beverage stores

Food services and drinking places
Payroll Employment in 2007

28 Monthly Labor Review • March 2008

 Table 3. Employees in housing-related industries, not seasonally adjusted, August 2004–December 2007

Industry

Level

 (thousands)

Net change in employment1

Percent Percent

Level

 (thousands)

Total housing-related industries ............................... –451.2 –4.2 –570.7 –5.2 508.5 4.9

 Seasonally adjusted .............................................. –457.0 –4.2 –602.6 –5.5 804.6 7.9

Natural resources and mining:

 Logging.................................................................. –1.7 –2.7 .5 .8 –9.7 –13.8

 Nonmetallic mineral mining and quarrying ........... –2.2 –2.1 –4.9 –4.5 –3.6 –3.2

Construction:

 Residential building construction .......................... –88.5 –9.0 –101.8 –10.2 70.9 7.6

 Residential specialty trades .................................. –146.9 –6.4 –215.3 –9.1 142.1 6.4

Manufacturing:

 Sawmills and wood preservation .......................... –5.0 –4.4 –9.1 –7.7 –2.6 –2.2

 Plywood and engineered wood products .............. –9.7 –8.8 –23.0 –18.7 2.0 1.7

 Other wood products ............................................. –13.6 –4.4 –26.8 –8.3 3.1 1.0

 Clay products and refractories ............................. –4.1 –6.9 –5.0 –8.3 –5.0 –7.7

 Cement and concrete products ............................ –12.4 –5.1 –18.6 –7.4 5.5 2.2

 Lime, gypsum, and other nonmetallic mineral 

 products ............................................................ 2.8 2.8 5.6 5.8 .8 .8

 HVAC and commercial refrigeration 

 equipment ........................................................... –5.0 –3.2 –5.6 –3.6 1.2 .8

 Electric lighting equipment ................................... –2.2 –3.7 –1.8 –3.0 –5.2 –8.0

 Household and institutional furniture .................... –23.1 –6.4 –43.1 –11.3 –8.2 –2.1

 Paints, coatings, and adhesives............................ .8 1.3 –2.6 –3.9 –.6 –.9

Wholesale trade:

 Furniture and furnishings....................................... –3.1 –2.6 –.8 –.7 5.4 4.9

 Lumber and construction supplies ........................ –10.3 –3.9 –12.2 –4.6 19.0 7.7

 Hardware and plumbing ....................................... 5.6 2.2 7.0 2.8 15.0 6.3

Retail trade:

 Furniture and home furnishing stores ................... .4 .1 27.9 4.8 22.1 3.9

 Home centers ....................................................... –28.3 –4.3 –72.8 –10.5 96.2 16.0

 Paint and wallpaper stores ................................... 1.0 2.4 .9 2.1 .4 1.0

 Hardware stores .................................................... .3 .2 .8 .5 –9.5 –5.6

Financial activities:

 Real estate credit .................................................. –89.5 –26.1 –98.9 –28.1 9.2 2.7

 Mortgage and nonmortgage loan brokers ............. –25.3 –17.9 –32.4 –21.9 18.8 14.5

 Direct title insurance and other direct 

 insurance carriers............................................. –14.1 –13.8 –19.8 –18.4 –1.3 –1.2

 Real estate ........................................................... –24.7 –1.6 –17.4 –1.2 46.8 3.2

 Machinery and equipment rental and leasing ....... 4.8 3.8 14.6 12.6 10.5 10.0

Professional and business services:

			Title abstract and settlement offices ..................... –8.2 –10.8 –11.0 –14.0 5.6 7.7

 Architectural and engineering services ................ 51.0 3.6 94.9 7.0 79.6 6.2

1

 Housing-related employment peaked in April 2006. For comparative purposes, similar time spans were used prior to and after the peak. 

December 2006 to

December 2007

Percent

 Level

 (thousands)

April 2006 to

December 2007

August 2004 to

April 2006
Monthly Labor Review • March 2008 29

the housing slump included direct title insurance and other 

direct insurance carriers, as well as real estate, rental, and 

leasing.

Slower employment growth extended to other housing-related industries as well. Title abstract and settlement 

offices, which showed little change in 2006, reduced employment by 10.8 percent in 2007. This industry includes 

establishments engaged primarily in (1) preparing documents necessary for the transfer of the title of a domicile 

and for the financing and settlement of housing loans; (2) 

conducting final real estate settlements and closings; and 

(3) filing legal and other documents relating to the sale of 

real estate.21 Employment in architectural and engineering 

services, including landscape architecture, posted an average gain of 4.6 percent for the previous 3 years, but slowed 

to a 3.6-percent increase in 2007. Employment notched 

down 2.6 percent in 2007 in the wholesale of furniture and 

furnishings after expanding over the previous 2 years.

Industry growth

Despite the challenging economic conditions, certain industries maintained or even increased their employment 

growth rates in 2007. Health care and social assistance 

posted a 3.0-percent gain, the highest growth rate in the 

industry since December 2001. This higher rate of growth 

was due mainly to hospitals, which averaged an increase of 

more than 9,000 jobs per month in 2007, compared with 

fewer than 7,000 per month in 2006. With 453,000 new 

jobs in 2007, health care and social assistance accounted 

for more than half of all net job growth in the private sector during the same period.

Professional and technical services added 322,000 jobs 

in 2007. Management and technical consulting services 

augmented its payrolls by 8.7 percent over the year, bringing the total to nearly 1 million employees, almost onethird higher than the last peak in March 2001. Computer 

systems design and related services added 72,000 employees in 2007. Accounting and bookkeeping employment, 

benefiting from increasingly complex reporting requirements and an overload of new standards and rules, rose 

by 8.3 percent in 2007, compared with 4.7 percent in 

2006.22

Within wholesale trade in 2007, the electronic markets 

and agents and brokers industry continued its expansion, 

adding 25,000 more employees, and nondurable goods 

Chart 5. Housing-related industries, over-the-month change in employment, seasonally adjusted,

 August 2004–December 2007

August 

2004

Note: See table 3 for a list of included industries.

Thousands

60

30

 0

 –60

 –30

90

 –90

April 

2005

December 

2004

August 

2005

August 

2006

August 

2007

December 

2005

April 

2006

December 

2006

April 

2007

December 

2007

Thousands

60

30

 0

 –30

90

 –60

 –90

Housing-related employment industries

Residential construction
Payroll Employment in 2007

30 Monthly Labor Review • March 2008

maintained its strongest growth rate in 10 years.

Both private and public education continued to supplement their staffs in 2007. Private education added 

2.6 percent to its workforce, bringing the total number 

of employees to nearly 3 million. Despite a slower rate 

of growth, local education added 63,000 jobs in 2007. 

Federal Government employment was unchanged over 

the year, but employment growth rates for State and local 

government, excluding education, were both more than 

a full percentage point higher than their average growth 

rates over the previous 5 years. 

Americans continued to invest in new technology. 

As wireless telecommunications began to replace wired 

telecommunications, employment shifted, resulting in 

an expansion in the wireless industry since 2003 and a 

contraction in the wired industry since 2000. These trends 

continued in 2007. Employment in electronics and appliance stores declined in 2006, but grew in 2007. Persistent 

job loss has characterized the utilities industry since 1991; 

however, 8,000 employees joined the workforce in 2007. 

Overall, growth in nonfarm payroll employment slowed 

to its lowest rate in 4 years in 2007: 0.8 percent. Industries 

affected by the declining housing market and the subprime 

credit quandary lost nearly one-half million jobs. Market 

factors such as higher fuel costs and higher interest rates 

drew from discretionary income and led to a decrease in 

spending on luxury and nonessential items.23 Employment 

growth decelerated in the leisure and hospitality, clothing 

stores, and personal and laundry services industries. However, consumers increased their spending on basic items 

such as food and medicine, which resulted in accelerated 

employment growth rates in food and beverage stores and 

in health and personal care stores. The population continued to age, increasing the demand for health care and 

social services, and as the population expanded, the need 

for educators and government employees increased.24 The 

result was employment increases in education and health 

services and in government, which together accounted for 

three-quarter million jobs, or more than two-thirds of total 

net nonfarm employment growth, in 2007.

Notes

1 The Current Employment Statistics (CES) program is a monthly 

survey of about 150,000 business and government agencies, representing approximately 390,000 individual worksites. For more information 

on the program’s concepts and methodology, see “Technical Notes to 

Establishment Data Published in Employment and Earnings,” on the 

Internet at www.bls.gov/web/empsit.supp.toc.htm#technote (visited Mar. 12, 2008). CES data are available on the Internet at www.bls.

gov/ces/ (visited Mar. 12, 2008). The CES data used in this article are 

seasonally adjusted unless otherwise noted.

2

 Leading and coincident indexes are available on the Internet at 

www.conference-board.org/economics/bci/pressRelease_output.

cfm?cid=1 (visited Mar. 12, 2008).

3 Ibid.

4 Real earnings are calculated by adjusting earnings in current dollars for changes in the Consumer Price Index for Urban Wage Earners 

and Clerical Workers (CPI-W).

5

 Crude oil quotes represent W&T Offshore, Inc. (WTI), daily spot 

pricing. Gasoline prices are for all grades and all formulations, weekly 

retail, in the United States. Data are available from the Energy Information Administration on the Internet at www.eia.doe.gov (visited 

Mar. 12, 2008).

6

 Moira Herbst, “Consumer Spending Could Be Out of Gas,” on 

the Internet at www.businessweek.com/bwdaily/dnflash/content/

may2007/db20070517_636305.htm, last updated May 17, 2007 (visited Mar. 12, 2008).

7

 Data on the number of operable oil refineries in the United States 

are available from the Energy Information Administration on the Internet at www.eia.doe.gov/ (visited Mar. 12, 2008).

8

 The GDP measure is produced by the U.S. Bureau of Economic 

Analysis and can be found on the Internet at www.bea.gov (visited 

Mar. 12, 2008).

9

 Real GDP and consumer spending (personal consumer expenditures) are in billions of chained 2000 dollars, as calculated by the U.S. 

Bureau of Economic Analysis.

10 For a discussion of the relationship between adjustable interest 

rates and discretionary income, see Gordon H. Sellon, Jr., “The Changing U.S. Financial System: Some Implications for the Monetary Transmission Mechanism,” Economic Review, first quarter, 2002), pp. 5-35.

11 For a discussion about changes to household expenditures during the business cycle, see Kerwin Kofi Charles and Melvin Stephens, 

Jr., “The Level and Composition of Consumption over the Business 

Cycle: The Role of ‘Quasi-Fixed’ Expenditures,” NBER Working Paper 

Series ( July 2006), Working Paper 12388.

12 Data on residential construction investment, housing starts, home 

sales, and vacancy rates are available from the U.S. Census Bureau and 

can be found on the Internet at www.census.gov/cgi-bin/briefroom/

BriefRm (visited Mar. 12, 2008).

13 Data on home values are available from S&P’s Case-Shiller® Home 

Price Indices, on the Internet at www2.standardandpoors.com/portal/site/

sp/en/us/page.topic/indices_csmahp/0,0,0,0,0,0,0,0,0,1,1,0,0,0,0,0.

html (visited Mar. 12, 2008). Mortgage interest rates are based on 30-year 

fixed-rate mortgages posted during the week of the 12th of the month 

from HSH Associate Financial Publishers and are available on the Internet at www.hsh.com (visited Mar. 12, 2008).

14 Data on subprime mortgage foreclosure starts were derived from 

the Mortgage Bankers Association National Deliquency Survey, on 

the Internet at www.mortgagebankers.org/ResearchandForecasts/

ProductsandSurveys (visited Mar. 12, 2008), and from testimony 

from Federal Reserve Board Chairman Ben S. Bernanke on September 20, 2007, on the Internet at www.federalreserve.gov/newsevents/

testimony/bernanke20070920a.htm (visited Mar. 12, 2008).

15 Data on delinquency rates, foreclosure starts, and the percent-
Monthly Labor Review • March 2008 31

age of loans in the process of foreclosure are available from the Mortgage Bankers Association and can be found on the Internet at www.

mortgagebankers.org/ResearchandForecasts/ProductsandSurveys

(visited Mar. 12, 2008).

16 “Stricter lending seen barring 1 million U.S. home buyers,” 

Reuters, March 9, 2007, on the Internet at www.reuters.com/

ar t ic le/companyNe wsAndP R/idUSN0924059020070309

(visited Mar. 12, 2008).

17 Federal financial regulatory agencies are composed of the Office 

of the Comptroller of the Currency, the Board of Governors of the 

Federal Reserve System, the Federal Deposit Insurance Corporation, 

the Office of Thrift Supervision, and the National Credit Union Administration. The proposed “Statement on Subprime Mortgage Lending” was issued in the Federal Register on March 8, 2007. Comments 

were requested and incorporated. The final statement was issued on 

June 29, 2007, and is reported on the Internet at www.federalreserve.

gov/newsevents/press/bcreg/20070629a.htm (visited Mar. 12, 2008).

18 Housing-related industry details are based on data that are not 

seasonally adjusted. 

19 Descriptions of the manufacturing industries that produce 

wood products or nonmetallic mineral products are available from 

the U.S. Census Bureau and can be found on the Internet at www.

census.gov/naics/2007/index.html (visited Mar. 12, 2008).

20 Wannasiri Chompoopet, “Existing Home Sales,” Housing & 

Economic Indicators, November 2007; National Association of Realtors, Dec. 20, 2007, on the Internet at www.realtor.org/research.

nsf/pages/EcoIndicator?OpenDocument (visited Mar. 12, 2008).

21 Descriptions of title abstract companies and settlement offices are available from the U.S. Census Bureau and can be found 

on the Internet at www.census.gov/naics/2007/index.html (visited Mar. 12, 2008).

22 Ken Crutchfield, “Challenges for Your Clients; Opportunities for 

Your Practice,” Accounting Technology: SMALL BUSINESS SERVICES, 8–9 (December 2007). Retrieved Mar. 10, 2008, from ABI/INFORM 

Research database (Document ID: 1402269361).

23 Charles and Stephens, “Consumption over the Business Cycle.”

24 Population data come from the Current Population Survey (CPS) 

and can be found on the Internet at www.bls.gov/cps/home.htm (visited Mar. 12, 2008).

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