August 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.

Nonfarm payroll employment increased in August and the unemployment rate was essentially unchanged at 5.6 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Since March, monthly payroll job growth has averaged 100,000 per month, much slower than in 1994 and 1993. Unemployment has changed very little in recent months.

Unemployment (Household Survey Data)

Both the number of persons unemployed and the rate of unemployment were about unchanged in August, at 7.4 million and 5.6 percent, respectively. Neither measure has changed markedly since this spring. (See table A-1.)

Unemployment rates were about the same in August as in July for adult men (4.8 percent), adult women (5.0 percent), teenagers (17.7 percent), whites (4.8 percent), and blacks (11.3 percent). The rate for Hispanics rose by 1.1 percentage points to 9.9 percent. (See tables A-1 and A-2.)

The number of unemployed persons who were on temporary layoff declined in August to 1.0 million, after edging up in June and July. Both the mean and median duration of joblessness--16.3 and 8.7 weeks, respectively--were about unchanged in August. (See tables A-5 and A-6.)

Total Employment and the Labor Force (Household Survey Data)

Total employment was little changed in August, at 124.8 million (seasonally adjusted), following a sizable increase in July. The employment-population ratio (the proportion of the population that was employed), which also had risen in July, remained about the same in August at 62.8 percent. (See table A-1.)

The number of workers who held more than one job was 7.6 million (not seasonally adjusted) in August, nearly 500,000 more than a year earlier. These workers comprised 6.0 percent of the total employed, up from 5.7 percent in August 1994. (See table A-8.)

The civilian labor force numbered 132.2 million (seasonally adjusted) in August. It has expanded by 1.1 million over the past year, just enough to keep pace with the growth in the population. As a result, the rate of labor force participation held steady over the year at 66.5 percent. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

A total of 1.5 million persons (not seasonally adjusted) were marginally attached to the labor force in August, that is, they wanted and were available for work but had stopped actively looking for jobs sometime in the prior 12 months. This was about 200,000 fewer than a year earlier. Of the 1.5 million, the number of discouraged workers--persons who had stopped looking for work because they believed there were no jobs available for them--totaled 410,000, slightly below the year-earlier level. (See table A-8.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment rose by 249,000 in August, after seasonal adjustment. More than half of the increase occurred in the services industry, and there also was a large gain in government employment. (See table B-1.) Payroll employment growth since March has averaged only 100,000 per month.

The services industry added 144,000 jobs in August, following little growth in the prior month. Business services accounted for the largest part of the gain (81,000). Within business services, employment in the help supply component increased by 44,000, after having fallen by a total of 56,000 in the prior 5 months. The computer services component continued to add jobs (11,000 in August), bringing the total gain in that industry over the last 12 months to 104,000. An industry related to business services, engineering and management services, recorded an increase of 13,000 jobs over the month and 151,000 over the past year. Elsewhere in the services industry, sizable over-the-month increases occurred in health services (28,000) and social services (22,000).

Government employment rose by 73,000 over the month, with increases concentrated in local government. Job gains in local education reflect the growing trend for schools to open in August rather than in September.

Elsewhere in the service-producing sector, employment in finance, insurance, and real estate rose by 15,000, the largest gain in more than a year. Transportation added 19,000 jobs in August, more than twice the prior month's growth. Within retail trade, large job losses in eating and drinking establishments were partially offset by gains in food stores and in auto dealers and service stations.

Manufacturing employment was about unchanged in August, after a particularly sharp decline in July and smaller losses in the prior 3 months. Durable goods regained half of its July employment loss, with increases concentrated in electronic equipment (6,000) and industrial machinery (5,000), the only components to show strong growth in 1995. Employment in nondurable goods continued to decline, with the largest losses occurring in apparel and printing and publishing.

Construction employment was flat in August. In fact, a total of only 28,000 jobs have been added since January; in 1994, about that many jobs were added in an average month. Over-the-month declines in general building contractors were offset by increases in special trades, which were concentrated in plumbing, heating, and air conditioning, probably due to the extremely hot weather.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls fell by 0.2 hour in August to 34.4, seasonally adjusted. The manufacturing workweek increased by 0.2 hour to 41.5, and factory overtime edged up to 4.4 hours; both remained below highs reached in January. (See table B-2.)

The index of aggregate weekly hours of private production or nonsupervisory workers on nonfarm payrolls declined 0.5 percent to 132.2 (1982=100) in August. The manufacturing index rose 0.8 percent to 106.2, seasonally adjusted, after 5 consecutive months of decline. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of private production or nonsupervisory workers on nonfarm payrolls declined by 2 cents in August to $11.47 (seasonally adjusted), following increases of 6 cents in both June and July. Average weekly earnings decreased by 0.7 percent to $394.57, reflecting the drops in the workweek and hourly pay. Over the past year, average hourly and weekly earnings rose by 3.0 and 2.4 percent, respectively. (See table B-3.)

The Employment Situation for September 1995 is scheduled for release on Friday, October 6, at 8:30 A.M. (EDT).