March 1994 Employment Situation

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

Nonfarm payroll employment rebounded sharply in March from weather- related weakness in the prior 2 months, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The unemployment rate, at 6.5 percent, was the same as it had been in February.

The March increase of 456,000 in the number of payroll jobs brought growth in the first quarter back in line with that for the fourth quarter of last year. The average workweek also expanded markedly following February's weather-induced declines.

Unemployment (Household Survey Data)

The unemployment rate was 6.5 percent in March, the same as in February, and the number of unemployed persons remained at 8.5 million. Unemployment rates for most worker groups were little changed from February to March.

Changes over the month in several measures partially reversed unusually large movements in February. The number of persons jobless for less than 5 weeks rose by 184,000 in March, while the number who were jobless from 5 to 14 weeks fell by 178,000. (See table A-5.) The number of persons employed part time for economic reasons--often referred to as the "partially unemployed"--rose by 349,000 to a total of 5.0 million in March (table A-3). It is important to note that data from the household survey continue to reflect the transition to a revised questionnaire and new collection method which were implemented in January.

Total Employment and the Labor Force

Total employment was 122.0 million in March, little changed from February. The employment-population ratio--the proportion of the working- age population with jobs--also was about unchanged at 62.2 percent. (See table A-1.) A total of 7.2 million workers (not seasonally adjusted), or 5.9 percent of all employed persons, held two or more jobs in March (table A-8).

The labor force participation rate in March was 66.6 percent (seasonally adjusted), and there were 130.6 million people in the labor force, about the same as in February. (See table A-1.)

Discouraged Workers (Household Survey Data)

The number of discouraged workers--those who wanted a job but gave up searching for work because they believed there were no jobs to be found-- totaled about 530,000 in March (not seasonally adjusted). (See table A-8.)

Industry Payroll Employment (Establishment Survey Data)

Nonfarm payroll employment climbed by 456,000 in March, as several industries rebounded from depressed levels related to severe winter weather in January and February. Monthly job growth for the first quarter averaged 208,000, about the same healthy advance as in the last quarter of 1993. (See table B-1.)

The construction industry added 74,000 jobs in March on a seasonally adjusted basis. After 2 months of weather-related declines totaling 22,000, construction again showed the strength it exhibited in late 1993. Mining employment was down slightly in March, as oil and gas extraction continued to lose jobs.

Manufacturing employment edged up by 12,000 in March, for the sixth straight month of growth, during which time 88,000 jobs have been added. Over-the-month gains were recorded in fabricated metals, industrial machinery, and electronic equipment; employment in each of these industries has been trending upward since last summer. There were job losses, however, in lumber and wood products, transportation equipment, and instruments.

Employment in transportation and public utilities grew by 21,000, due to an unusually large increase in the transportation component. Total transportation employment (3.6 million) has now surpassed the previous peak level reached in December 1990. The number of jobs in retail trade rose by 74,000 in March, with gains distributed across its component industries. Eating and drinking establishments regained the jobs lost as a result of the extreme winter weather, but their employment growth in the first quarter was still below normal. Wholesale trade employment rose slightly (10,000); this industry has added about 150,000 jobs since September 1992.

The services industry added 223,000 jobs in March, as many of its weather-sensitive components bounced back. Business, health, auto repair, and educational services, as well as amusement and recreation and hotels and other lodging places, all contributed to this increase. The average rise in services employment for the first 3 months of the year (about 100,000) is in line with the trend for 1993. The finance industry added

10,000 jobs in March. In government, increases were registered at the state and local level, while the Federal government continued to lose jobs.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls rebounded by 0.4 hour from February's large weather-related decline, to 34.7 hours, seasonally adjusted. The manufacturing workweek not only reversed February's decline but rose by an additional 0.4 hour, for a total over-the-month gain of 1.0 hour. The manufacturing workweek and overtime hours are at post-World War II highs of 42.2 and 4.8 hours, respectively. (See table B-2.)

The index of aggregate hours of private production or nonsupervisory workers on nonfarm payrolls jumped 1.8 percent to 126.9 (1982=100) in March. The manufacturing index shot up 2.5 percent to 104.0. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of private production or nonsupervisory workers on nonfarm payrolls edged up by 0.1 percent in March, after seasonal adjustment. Average weekly earnings rose by 1.3 percent, reflecting the increase in the workweek. Before seasonal adjustment, average hourly earnings slipped 1 cent in March to $11.05, while average weekly earnings were up $4.08 to $380.12. Over the year, average hourly earnings increased by 2.4 percent and average weekly earnings by 3.6 percent. (See table B-3.)