January 1997 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 rose in January, and the unemployment rate was essentially unchanged at 5.4 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.

The number of nonfarm payroll jobs, as measured by the monthly survey of establishments, rose by 271,000 in January, after seasonal adjustment. Total employment, as measured by the monthly survey of households, rose by about 430,000 over the month, after allowance is made for the effect of revised population controls introduced into the survey in January. (See note on page 4.)

Unemployment (Household Survey Data)

Both the number of unemployed persons, 7.3 million, and the unemployment rate, 5.4 percent, were about unchanged in January, after seasonal adjustment. Jobless rates for the major demographic groups--adult men (4.6 percent), adult women (4.6 percent), teenagers (17.0 percent), whites (4.6 percent), blacks (10.8 percent), and Hispanics (8.3 percent)--also showed little or no change over the month. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

After adjusting for the effect of the revised population estimates, civilian employment rose by about 430,000 in January, to 128.6 million (seasonally adjusted). The proportion of the population that was employed (the employment-population ratio) edged up to 63.6 percent.

The number of persons employed part time for economic reasons was about unchanged in January at 4.4 million, after seasonal adjustment. This series has shown little definitive movement over the past year. (See table A-3.)

Approximately 7.6 million persons (not seasonally adjusted) held more than one job in January. The proportion of all employed persons that held more than one job was 6.0 percent. (See table A-9.)

The civilian labor force, at 135.8 million (seasonally adjusted), increased by about 500,000 in January, after allowance for the revised population estimates. The labor force participation rate continued to trend upward, reaching 67.2 percent.

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 January--that is, they wanted and were available for work and had looked for jobs sometime in the prior 12 months. The number of discouraged workers--a subset of the marginally attached who were not currently looking for jobs specifically because they believed no jobs were available for them or there were none for which they would qualify--was 397,000 in January. (See table A-9.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment increased by 271,000 in January to 121.0 million, after seasonal adjustment. The services industry accounted for three-fifths of January’s increase, and manufacturing employment rose for the fourth straight month. (See table B-1.)

The services industry added 167,000 jobs in January, with business services and health services accounting for two-thirds of the gain. Within business services, growth continued in computer and data processing services, and there was an exceptionally large job gain in help supply services, after seasonal adjustment. While there does appear to have been some genuine strength in help supply services in January, the magnitude of the increase was exaggerated somewhat by special factors affecting the seasonally adjusted data. Health services employment rose by 43,000 in January, with sizable increases occurring in offices and clinics of medical doctors and in hospitals.

Employment in transportation rose by 16,000. Retail trade employment was little changed overall in January. Job gains in apparel stores, eating and drinking places, and other retail industries were offset by a large decline in general merchandise stores. Still, employment in general merchandise stores was slightly higher than the level recorded in September, just prior to the holiday hiring period. Employment in finance, insurance, and real estate rose modestly in January, as continued job gains in finance and real estate were partly offset by declines in insurance.

Manufacturing employment rose by 18,000 in January, building on a slow growth trend that began last October. Gains were concentrated in transportation equipment, including both aircraft and motor vehicles, and in industrial machinery and food products. Employment in apparel continued its long-term decline; this industry has lost 200,000 jobs, or one-fifth of its workforce, over the past 5 years. Employment in the construction industry continued to trend upward, but the January increase was limited by severe weather conditions in some parts of the country.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls fell sharply in January--0.7 hour--to 34.1 hours, seasonally adjusted, reflecting the impact of extreme weather in many areas during the survey reference period. The length of the workweek was down in each of the major industry groups. The manufacturing workweek, 41.7 hours, was down by 0.3 hour in January. Factory overtime was unchanged at 4.6 hours. (See table B-2.)

The index of aggregate weekly hours of private production or nonsupervisory workers on nonfarm payrolls fell by 1.7 percent to 137.0 (1982=100) in January, as the decline in the average workweek more than offset the rise in employment. The manufacturing index fell by 0.7 percent to 106.2. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of private production or nonsupervisory workers on nonfarm payrolls edged up by 1 cent in January to $12.06, seasonally adjusted, following large increases in the prior 2 months. Reflecting the decline in the workweek, average weekly earnings fell by 1.9 percent to $411.25. Over the past year, average hourly earnings rose by 3.8 percent and average weekly earnings increased by 4.7 percent. (See table B-3.)