December 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 December and the unemployment rate was unchanged at 5.6 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The release of these data was delayed by the recent federal government shutdown. The collection and processing of the survey data also were impacted. There is no evidence that the estimates were appreciably affected. (See box note on page 4.)

Unemployment (Household Survey Data)

Both the number of unemployed persons, at 7.4 million, and the unemployment rate, at 5.6 percent, were unchanged in December and have remained within a narrow range over the past year. December jobless rates for the major worker groups--adult men (4.9 percent), adult women (4.6 percent), teenagers (18.3 percent), whites (5.0 percent), blacks (10.2 percent), and Hispanics (9.3 percent)--showed little or no change from the November levels. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

Total employment, at 124.9 million in December, was essentially unchanged over the month. The number of employed persons was little different from its year-earlier level, after showing substantial growth in the prior 3 years. The proportion of the working-age population that was employed (the employment-population ratio) was 62.6 percent in December, somewhat below the levels that prevailed at the end of 1994. The number of persons working part time for economic reasons was about unchanged in December at 4.4 million. (See tables A-1 and A-3.)

The number of workers who held more than one job in December was 7.7 million (not seasonally adjusted). These multiple jobholders comprised 6.2 percent of all employed persons, about the same as a year earlier. (See table A-8.)

The civilian labor force, at a seasonally adjusted level of 132.3 million in December, was about unchanged from the previous month. The labor force participation rate also was little changed at 66.3 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 December--that is, they wanted and were available for work but had stopped looking for jobs sometime in the prior 12 months. The number of discouraged workers--persons who had stopped looking for work specifically because they believed no jobs were available to them--was 425,000 in December. (See table A-8.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment rose by 151,000 in December to 117.3 million. The largest job gains occurred in services and manufacturing; the increase in factory jobs was largely the result of workers returning from strikes and from temporary layoffs in transportation equipment. Nonfarm employment increased by 1.7 million during all of 1995. (See table B-1.)

Employment in the services industry rose by 69,000 in December, continuing its recent pattern of slower job growth. Over the month, employment continued to increase in health, engineering and management, and business services. Within business services, there were continued gains in computer services, although personnel supply showed no growth for the third straight month. In amusement and recreation services, employment fell by 35,000 in December; job losses since August have erased much of the strong growth of last spring and summer. Employment in transportation and public utilities rose by 15,000, primarily due to larger-than-usual hiring in the transportation industry to help with holiday travel and package delivery. Following an increase of 82,000 in November, employment in retail trade fell by 48,000 in December. Some of the holiday period job growth normally registered in December was picked up in November this year due to the timing of the November and December surveys. In addition, weak seasonal hiring resulted in job losses in department stores and apparel and accessory stores over the October to December period, after seasonal adjustment. In contrast, wholesale trade added 11,000 jobs in December; gains were divided between the distribution of durable and nondurable goods. Government employment increased by 29,000 in December, as growth in local government more than offset declines at the state and federal levels.

Manufacturing employment increased by 52,000 in December, following three consecutive monthly declines; however, much of the increase reflected special factors. The job gain in aircraft and parts (31,000) resulted from the return of workers who had been on strike, and the increase in motor vehicles and parts (10,000) included workers who had been on temporary layoff for inventory adjustment. Over-the-month employment increases continued in industrial machinery and electronic components, while textiles, apparel, and printing and publishing again experienced job losses.

Employment in the construction industry was little changed in December for the second straight month, in part because of severe weather conditions in some areas of the country.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls edged down by 0.1 hour in December to 34.4 hours, seasonally adjusted. The manufacturing workweek and factory overtime also edged down by 0.1 hour to 41.4 and 4.3 hours, respectively. (See table B- 2.)

The index of aggregate weekly hours of private production or nonsupervisory workers on nonfarm payrolls declined by 0.2 percent, on a seasonally adjusted basis, to 133.1 (1982=100) in December. The manufacturing index was up 0.2 percent to 105.9. (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 December to $11.63, seasonally adjusted, and average weekly earnings edged up by 0.1 percent to $400.07. Over the past year, average hourly earnings rose by 3.2 percent and average weekly earnings increased by 2.3 percent. (See table B-3.)

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