November 1998 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 increased in November, and the unemployment rate edged down to 4.4 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Nonfarm payroll employment grew by 267,000, with sizable job gains in services, construction, and retail trade more than offsetting another large decline in manufacturing.

Unemployment (Household Survey Data)

Both the number of unemployed persons, 6.1 million, and the unemployment rate, 4.4 percent, edged down in November. Over the last 12 months, the jobless rate has ranged from 4.3 to 4.7 percent. Among the major worker groups, the unemployment rates for adult men (3.5 percent) and whites (3.8 percent) edged down, while the rates for adult women (4.1 percent), teenagers (15.1 percent), blacks (8.7 percent), and Hispanics (7.0 percent) showed little change in November. (See tables A-1 and A-2.)

The number of persons unemployed for less than 5 weeks decreased by 389,000 to 2.5 million in November, following an increase in October. (See table A-6.)

Total Employment and the Labor Force (Household Survey Data)

Total employment rose by 477,000 in November to 132.2 million, seasonally adjusted. The employment-population ratio--the proportion of the population age 16 and older with jobs--was 64.1 percent, little changed from the previous month. Over the year, employment has risen by 1.9 million, after adjusting for the changes in the composite estimation procedure introduced with the January 1998 data. (See table A-1.)

About 8.3 million persons (not seasonally adjusted) held more than one job in November. These multiple jobholders comprised 6.3 percent of total employed, about the same as a year earlier. (See table A-10.)

The civilian labor force, 138.3 million (seasonally adjusted), was about unchanged in November. Over the year, the labor force has grown by 1.7 million, after adjusting for the changes in the composite estimation procedure. In November, the labor force participation rate was essentially unchanged at 67.1 percent. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

About 1.2 million persons (not seasonally adjusted) were marginally attached to the labor force in November. These were people who wanted and were available for work and had looked for a job sometime in the prior 12 months but were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

The number of discouraged workers--a subset of the marginally attached who were not currently looking for work specifically because they believed no jobs were available for them--was 310,000 in November, about the same as a year earlier. (See table A-10.)

Industry Payroll Employment (Establishment Survey Data)

Nonfarm payroll employment increased by 267,000 in November to 126.8 million, seasonally adjusted. This gain was comparable to the average increase in the first 5 months of 1998 (255,000) and well above the average monthly rise from June to October (189,000). Employment in services, retail trade, and construction rose markedly in November, while manufacturing lost an additional 47,000 jobs, and mining continued its long- term downward trend.

The services industry added 150,000 jobs in November, its largest increase since May. Employment in business services rose by 55,000. Within business services, computer services rose by 14,000, continuing its growth trend, and help supply services gained 22,000 jobs, well above its average pace for this year. The November employment increase in engineering and management services (30,000) was the second largest monthly rise in a year of robust growth. Private educational services added 15,000 jobs over the month, for a total gain of 54,000 since August. Employment in health services was up by 14,000, with the largest increase in doctors? offices and clinics. The number of jobs in home health care services was unchanged, following 13 straight months of declines; employment in nursing and personal care facilities also was unchanged in November, following decreases in 4 of the prior 5 months.

The construction industry had another large employment gain (47,000), after adding 32,000 jobs in October. Smaller-than-usual seasonal layoffs in special trade contractors and heavy construction accounted for most of the November increase (after seasonal adjustment). Over the past 12 months, employment in construction has risen by 310,000.

Retail trade gained 65,000 jobs in November, following little growth in October. Over the year, employment in this industry has risen by 457,000. Nearly half of November?s increase occurred in eating and drinking places. Employment in department stores rose by 19,000, as seasonal hiring was stronger than usual. In wholesale trade, employment was essentially flat for the second month in a row.

Employment in the finance industry rose by 10,000, with most of the gain occurring in mortgage brokerages. Insurance continued to add jobs, with a gain of 6,000 over the month, and employment in real estate increased by 7,000.

Employment in transportation and public utilities rose by 7,000 in November, well below the average for the prior year. Water transportation and transportation services accounted for most of the increase. Employment was unchanged in both trucking and communications. In government, local education employment was up by 24,000. Federal employment, except postal, declined by 4,000 in November.

Manufacturing employment decreased by 47,000 in November, following a decline of 61,000 in October. Since its latest peak in March, the number of factory jobs has fallen by 245,000. Industrial machinery lost 15,000 jobs in November, and electronic equipment lost 8,000. Employment in both industries has been trending downward since March. Apparel continued its long-term decline, losing 10,000 jobs in November. In addition, primary metals, aircraft, and instruments all have experienced accelerating job losses in recent months. Employment in mining decreased by 3,000 over the month and has fallen by 33,000 since its most recent peak in September 1997.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls was unchanged at 34.6 hours in November, seasonally adjusted. The manufacturing workweek edged down by 0.1 hour to 41.6 hours, while factory overtime remained unchanged at 4.5 hours. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls was little changed at 145.8 (1982=100), seasonally adjusted. The manufacturing index decreased by 0.6 percent to 107.2. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls rose 3 cents in November to $12.93, seasonally adjusted. Average weekly earnings increased by 0.2 percent to $447.38. Over the year, average hourly and weekly earnings have risen by 3.7 and 3.4 percent, respectively. (See table B-3.)

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