June 1995 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.

Employment increased in June and unemployment was about unchanged, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Nonfarm payroll employment increased by 215,000, with the most noteworthy gains in the services and construction industries. Manufacturing employment, however, continued to shrink. The unemployment rate in June was 5.6 percent; the rate has fluctuated between 5.4 and 5.8 percent thus far this year.

Unemployment (Household Survey Data)

Both the number of unemployed persons and the unemployment rate were essentially unchanged in June at 7.4 million and 5.6 percent, respectively. None of the jobless rates for the major worker groups--adult men (4.8 percent), adult women (5.0 percent), teenagers (16.4 percent), whites (4.8 percent), blacks (10.6 percent), and Hispanics (9.0 percent)--was materially different from May levels. (See tables A-1 and A-2.)

The number of persons seeking work for 15 weeks or longer declined over the month to 2.3 million. Both the mean and median duration of unemployment each fell to its lowest level in about 3-1/2 years. (See table A-5.)

Total Employment and the Labor Force (Household Survey Data)

Total employment in June, at 124.5 million, was little different from the May level (after seasonal adjustment). The employment-population ratio--the proportion of the working-age population with jobs--was 62.7 percent, unchanged from May and 0.6 percentage point lower than its recent high in March. (See table A-1.)

A total of 7.9 million workers (not seasonally adjusted), or 6.2 percent of all employed persons, held two or more jobs in June. A year earlier, 5.7 percent of the employed held more than one job. (See table A-8.)

At 131.9 million, seasonally adjusted, the civilian labor force was about unchanged in June. The labor force participation rate was 66.4 percent. So far in 1995, virtually no net labor force growth has been recorded by the household survey. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

The number of persons with a marginal attachment to the labor force-- those who wanted and were available for work, but were no longer actively looking for jobs after having searched sometime in the past 12 months--was 1.6 million (not seasonally adjusted) in June. Of that total, those who were not looking because they believed that there were no jobs available for them--discouraged workers--numbered 364,000, well below the level of a year earlier. (See table A-8.)

Industry Payroll Employment (Establishment Survey Data)

Nonfarm payroll employment rose by 215,000 in June, after seasonal adjustment, following little change in the prior 2 months. About half of the increase occurred in the services industry, and there also was a sizable job gain in construction. (See table B-1.)

The construction industry added 42,000 jobs in June, after seasonal adjustment, partially recouping the employment declines in April and May. Some of the June increase likely reflected drier weather over much of the country. Nevertheless, the overall hiring pace in the industry remains sluggish so far this year, compared with the same period last year.

Employment in manufacturing fell by 40,000 in June (seasonally adjusted), the third consecutive decrease. Since March, manufacturing has lost 104,000 jobs. Over-the-month declines were widespread, with the largest job losses occurring in the apparel and transportation equipment industries. Mining employment was little changed in June, but has generally been drifting downward since mid-1990.

The services industry added 114,000 jobs in June, in line with the average monthly gain in the industry before the lull in job growth in the prior 2 months. Sizable over-the-month increases occurred in amusement and recreation, health, engineering and management, and educational services. Employment in business services also expanded in June, but growth in the industry has slowed considerably since early this year and employment in its help supply component has actually declined.

Retail trade employment rose slightly in June, but the industry has shown virtually no net job growth thus far in 1995. The transportation and public utilities industry added 18,000 jobs in June, mostly in trucking and air transportation.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls rose by 0.3 hour in June, nearly offsetting the decline in May. The manufacturing workweek edged up in June to 41.5 hours, while factory overtime slipped to 4.2 hours. Both of the manufacturing series are down 0.7 hour since January of this year. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls rose 0.8 percent over the month to 132.3 (1982=100). The manufacturing index was about unchanged at 106.6. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of private production or nonsupervisory workers were up 5 cents in June to $11.43, seasonally adjusted, following a small decline in May. Average weekly earnings rose by 1.3 percent to $394.34, reversing a similarly sized decrease in May. Over the past year, average hourly and weekly earnings increased by 3.1 and 2.5 percent, respectively. (See table B-3.)