July 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.

Both unemployment and nonfarm payroll employment were essentially unchanged in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The unemployment rate was 5.7 percent in July and has shown very little movement in recent months. The overall weakness in payroll employment reflected a sharp drop in manufacturing jobs that was offset by small gains in a number of the service-producing industries. Average hourly earnings rose by 7 cents and the factory workweek continued its descent.

Unemployment (Household Survey Data)

The number of unemployed persons totaled 7.6 million in July, and the unemployment rate was 5.7 percent. Both measures have shown little change since April. (See table A-1.)

Jobless rates showed little or no change in July for adult men (4.7 percent), adult women (5.1 percent), whites (4.8 percent), blacks (11.1 percent), and Hispanics (8.8 percent). In contrast, the rate for teenagers rose to 18.2 percent. Both the mean (16.5 weeks) and median (9.1 weeks) duration of unemployment rose over the month after falling in June. (See tables A-1, A-2, and A-5.)

Total Employment and the Labor Force (Household Survey Data)

Total employment increased by 474,000 in July to 125.0 million (seasonally adjusted). A rise in employment among adult women was partly offset by a decline among teenagers. The employment-population ratio--the proportion of the working-age population with jobs--was up 0.2 percentage point to 62.9 percent but remains below the levels reached earlier in the year. (See table A-1.)

A total of 7.8 million workers (not seasonally adjusted), or 6.1 percent of all employed persons, held two or more jobs in July. A year earlier, 5.8 percent of the employed held more than one job. (See table A-8.)

The civilian labor force was up by 649,000 over the month to 132.5 million, seasonally adjusted. Adult women accounted for virtually all of this increase. The labor force participation rate rose 0.3 percentage point to 66.7 percent, somewhat less than the levels that prevailed earlier in the year. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

A total of 1.6 million persons (not seasonally adjusted) had a marginal attachment to the labor force in July, that is, they wanted and were available for work but had ceased their active search for jobs after having looked sometime in the prior 12 months. Those who were not looking because they believed that no jobs were available for them--discouraged workers--accounted for 456,000 of the 1.6 million. Both figures were below those of a year earlier. (See table A-8.)

Industry Payroll Employment (Establishment Survey Data)

Nonfarm payroll employment was about unchanged in July, after seasonal adjustment, as job gains in several of the service-producing industries were largely offset by a steep decline in manufacturing. (See table B-1.)

The manufacturing job reduction of 85,000 in July added to losses that now total 188,000 since the industry began shedding jobs in April. Over- the-month declines were widespread across both durable and nondurable goods industries. Among durables, the largest decline occurred in transportation equipment, where the decrease of 20,000 reflected temporary shutdowns in the motor vehicle industry and further cutbacks in aircraft manufacturing. Aircraft has lost nearly 40 percent of its employment over the last 5 years. Small job losses continued in July among most other durable goods manufacturers. Among the nondurable goods industries, sizable employment declines continued in apparel, textiles, chemicals, and rubber and plastics. The only manufacturing industry to sustain a trend of job growth was electronics.

Construction employment was unchanged in July, after seasonal adjustment. Job totals in the industry have fluctuated in recent months, and there has been no definitive trend since steady growth tapered off this past spring. Mining employment continued its long-term decline in July.

In the service-producing sector, both wholesale and retail trade added jobs over the month. In wholesale trade, the job gain of 17,000 was in line with the average monthly increase over the past year. Employment in retail trade expanded by 54,000, following a similarly sized gain in June. There had been no net job growth in the industry this year prior to June. Most of the recent strength was in eating and drinking places.

The services industry exhibited modest job growth in July, with a gain of only 60,000. Smaller-than-average increases occurred in business, health, and engineering services, and employment in social services declined for the second straight month. Overall, the pace of job growth in services has clearly slowed in recent months.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls edged up by 0.1 hour in July to 34.6 hours, after seasonal adjustment. Average hours in manufacturing fell by 0.2 hour to 41.3 hours; the series is nearly a full hour below its recent peak. Factory overtime edged up to 4.3 hours, after falling in each of the prior 5 months. (See table B-2.)

The index of aggregate weekly hours of private production or nonsupervisory workers on nonfarm payrolls rose 0.5 percent to 133.0

(1982=100) in July. The manufacturing index, which has been trending downward since March, declined further in July to 105.3. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of private production or nonsupervisory workers rose 7 cents in July to $11.49, after seasonal adjustment. Average weekly earnings rose by 0.9 percent to $397.55. Over the past year, average hourly and weekly earnings rose by 3.2 and 2.9 percent, respectively. (See table B-3.)