October 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 October and the unemployment rate was essentially unchanged at 5.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The number of payroll jobs increased by 116,000, as several service-producing industries and construction experienced gains. Manufacturing employment was down, reflecting a strike in the aircraft industry.

Unemployment (Household Survey Data)

Both the number of unemployed persons and the unemployment rate were about unchanged in October at 7.2 million and 5.5 percent, respectively. The jobless rate has remained in a very narrow range in recent months. The unemployment rate for adult men fell four-tenths of a percentage point in October to 4.5 percent. The rate for blacks (9.9 percent) also fell; this series often fluctuates widely from month to month. The rates for adult women (5.0 percent), teenagers (17.1 percent), whites (4.8 percent), and Hispanics (9.4 percent) showed little or no change. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

Total employment, at 125.4 million in October, changed little over the month. The proportion of the working-age population that was employed (the employment-population ratio) was 63.0 percent in October. This ratio has been at or near that level over the past 12 months. The number of persons working part time for economic reasons fell slightly in October to 4.4 million. This series has shown no clear trend for more than a year. (See tables A-1 and A-3.)

The number of workers who held more than one job in October was 8.0 million (not seasonally adjusted). These multiple jobholders comprised 6.3 percent of the total employed, little different from a year earlier. (See table A-8.)

The civilian labor force, at a seasonally adjusted level of 132.6 million in October, was unchanged from the previous month. The labor force participation rate also was unchanged at 66.6 percent. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

About 1.6 million persons (not seasonally adjusted) were marginally attached to the labor force in October--that is, they wanted and were available for work but had stopped looking for jobs sometime in the prior 12 months. This was about the same number as a year earlier. The number of discouraged workers--persons who had stopped looking for work specifically because they believed no jobs were available to them--was 412,000 in October. (See table A-8.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment rose by 116,000 in October to 117.0 million, after seasonal adjustment. The increase was held down by a net rise in strike activity, which removed 23,000 workers from payrolls. Most industry divisions in the service-producing sector showed job gains over the month. (See table B-1.)

Employment in the services industry rose by 57,000 in October, the second straight month of relatively slow growth. Sizable increases occurred in health, engineering and management, and auto repair services. Employment in business services, which had grown by nearly 400,000 jobs over the year ending in September, was essentially unchanged in October, as further gains in computer services were offset by a decline in personnel supply. There were small declines in several other services industries.

Employment in transportation and public utilities rose by 22,000, more than reversing a decline in the previous month. A job gain of 14,000 in trucking and warehousing included a return of 5,000 workers who had been on strike. Air transportation added 6,000 jobs for the second consecutive month. Finance, insurance, and real estate employment rose sharply; the increase of 18,000 resulted from strength in real estate, mortgage banking, and credit agencies. Wholesale trade also added workers, largely in durable goods distribution. Employment in retail trade was little changed, following a large increase in the previous month. While auto dealers and service stations posted a sizable job gain, there was a decline of similar magnitude in miscellaneous retail (such as drug stores and catalog companies). Employment in eating and drinking places declined in October, reversing an increase in September.

Manufacturing employment declined by 21,000 in October. A strike in the aircraft industry removed 26,000 workers from payrolls. Job losses continued in apparel and in printing and publishing. A number of manufacturing industries recorded job gains, including fabricated metals, industrial machinery (despite a strike involving 2,000 workers), electronic components, and food processing.

Construction employment rose by 28,000, following a similar increase in September. Despite these gains, the increase in construction employment over the past year is still only about 60 percent of the growth in the prior 12 months. Mining continued its downward slide, losing 3,000 jobs in October.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls rose by 0.2 hour in October to 34.7 hours, seasonally adjusted. Both the manufacturing workweek and factory overtime fell by 0.2 hour, to 41.5 hours and 4.3 hours, respectively, the same levels as in August. (See table B-2.)

The index of aggregate weekly hours of private production or nonsupervisory workers on nonfarm payrolls increased by 0.8 percent on a seasonally adjusted basis to 134.0 (1982=100) in October. The manufacturing index fell 0.5 percent to 105.8. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of private production or nonsupervisory workers on nonfarm payrolls advanced 6 cents in October to $11.59 (seasonally adjusted) following a gain of 5 cents in the previous month. Average weekly earnings increased by 1.1 percent, reflecting gains in both the workweek and hourly pay. Over the past year, average hourly earnings rose by 3.0 percent and average weekly earnings rose by 2.4 percent. (See table B-3.)