March 1999 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 was little changed in March, and the unemployment rate declined to 4.2 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Nonfarm payroll employment increased by only 46,000. Employment rose in most service-producing industries, but unseasonably cold weather contributed to job losses in construction. Manufacturing and mining employment continued to decline.

Unemployment (Household Survey Data)

Both the number of unemployed persons, 5.8 million, and the unemploy- ment rate, 4.2 percent, decreased in March. From April 1998 through February 1999, the rate had been in the 4.3- to 4.5-percent range. The jobless rate for adult men dropped to 3.2 percent in March. Unemployment rates for whites (3.6 percent) and Hispanics (5.8 percent) also decreased, while rates for other major demographic groups--adult women (3.9 percent), teenagers (14.3 percent), and blacks (8.1 percent)--were little changed. (See tables A-1 and A-2.)

Among the major educational attainment categories, the unemployment rate for persons 25 years and over with less than a high school diploma fell to 6.1 percent in March. Jobless rates for high school graduates with no college experience (3.4 percent), persons with college experience but no bachelor's degree (2.8 percent), and college graduates (1.9 percent) showed little or no change. (See table A-3.)

Total Employment and the Labor Force (Household Survey Data)

Total employment was essentially unchanged in March at 133.0 million, seasonally adjusted. The employment-population ratio--the proportion of the population age 16 and older with jobs--was 64.3 percent, little changed over the month. (See table A-1.)

The civilian labor force decreased to 138.8 million, seasonally adjusted. The labor force participation rate was 67.0 percent in March, down from 67.3 percent a month earlier. (See table A-1.)

About 8.0 million persons (not seasonally adjusted) held more than one job in March. These multiple jobholders made up 6.1 percent of the total employed, the same share as a year earlier. (See table A-10.)

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 March. 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 295,000 in March. (See table A-10.)

Industry Payroll Employment (Establishment Survey Data)

Nonfarm payroll employment rose by only 46,000 in March, to 127.7 million, seasonally adjusted. Over the prior 4 months, job gains had averaged 276,000 a month. (See table B-1.)

Construction employment dropped by 47,000, seasonally adjusted, in March, after increasing by 268,000 over the prior 5 months. Relatively mild weather had helped bolster employment in the winter months. As a result, there was less need for seasonal hiring in March. In addition, unusually cold weather in much of the country during the March survey reference period further slowed hiring. Most of the over-the-month declines in construction employment, on a seasonally adjusted basis, were in outside activities such as heavy construction and the masonry, concrete, and roofing components of special trades.

Manufacturing employment fell by 35,000 in March, continuing a downward trend that began a year earlier. In March, job reductions continued in industrial machinery (-14,000) and fabricated metals (-4,000). Over the past 12 months, manufacturing has lost 381,000 jobs. The largest over-the- year employment declines occurred in industrial machinery (-89,000), apparel (-83,000), and electrical equipment (-69,000).

Employment in mining declined by 7,000 in March and has fallen by 55,000 over the year. While the declines have been concentrated in oil and gas extraction, the March drop was spread across all types of mining.

Within the service-producing sector, employment in retail trade was little changed in March, after seasonal adjustment. Employment in eating and drinking places fell by 48,000, reflecting below-normal seasonal hiring. Other retail industries added jobs in March, including 14,000 in general merchandise stores and 9,000 each in furniture stores and miscellaneous retail establishments.

The services industry added 95,000 jobs in March, slightly below the average monthly increase of 112,000 for the previous 12 months. Robust employment growth continued in engineering and management services. Computer services also grew, but the gain of 10,000 jobs in March fell short of the average monthly gain of 17,000 over the prior year. Help supply services added 13,000 jobs over the month; this industry has added 81,000 jobs since September, following a 7-month period with no net change. Over the month, employment in health services rose by 15,000, with gains occurring in doctors' offices and hospitals. Agricultural services employment declined by 8,000, after seasonal adjustment. This industry includes landscape and horticultural services, activities that likely were affected by the harsh weather conditions in early March.

Employment in finance rose by 11,000 in March, as growth continued throughout most of its component industries. The insurance industry posted an increase of 6,000, in line with its recent trend. Real estate employment declined slightly for the second straight month; it had risen by 62,000 over the prior 12 months.

Employment in transportation and public utilities increased by 8,000 in March, below the industry's average monthly growth of 14,000 over the prior year. Communications employment was essentially flat. Transportation added 11,000 jobs, largely in trucking.

Wholesale trade employment rose by 9,000 in March, with increases split between durable and nondurable goods distribution. Within government, local education employment rose by 21,000 over the month.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls edged down 0.1 hour in March to 34.5 hours, seasonally adjusted. The manufacturing workweek was 41.6 hours for the third straight month. Factory overtime, at 4.5 hours, was unchanged over the month. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls declined by 0.5 percent to 146.5 (1982=100), seasonally adjusted. The manufacturing index was down 0.4 percent in March to 106.3. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls rose by 3 cents in March to $13.09, seasonally adjusted. This followed a 3-cent gain (as revised) in February. Average weekly earnings were $451.61 in March (seasonally adjusted), down less than 0.1 percent over the month. Over the year, average hourly earnings rose by 3.6 percent and average weekly earnings increased by 3.3 percent. (See table B-3.)