August 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.

Payroll employment rose modestly in August, and the unemployment rate was essentially unchanged at 4.2 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Nonfarm payroll employment increased by 124,000, following a much larger gain in July. August job growth was slightly below average in the service-producing sector, and manufacturing and construction both lost jobs.

Unemployment (Household Survey Data)

The number of unemployed persons, 5.9 million, and the unemployment rate, 4.2 percent, were essentially unchanged in August. The rate has been 4.2 or 4.3 percent each month since March. Over the month, the jobless rates for adult women (3.7 percent) and blacks (7.8 percent) declined, while the rates for adult men (3.6 percent), teenagers (13.5 percent), whites (3.7 percent), and Hispanics (6.5 percent) showed little or no change. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

The civilian labor force, 139.3 million, and the labor force participation rate, 66.9 percent, were about unchanged from July. Total employment was virtually unchanged at 133.4 million, and the employment- population ratio remained at 64.1 percent. (See table A-1.)

About 7.3 million persons (not seasonally adjusted) held more than one job in August. These multiple jobholders represented 5.4 percent of the total employed, compared to 5.6 percent a year earlier. (See table A-10.)

Persons Not in the Labor Force (Household Survey Data)

About 1.1 million persons (not seasonally adjusted) were marginally attached to the labor force in August. These were people who wanted and were available to 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 265,000 in August, essentially unchanged from a year earlier. (See table A-10.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm employment rose by 124,000 in August to 128.9 million, after seasonal adjustment. This follows a much sharper increase (338,000) in July. The average growth for these 2 months (231,000) was about in line with the monthly average (210,000) during the first half of 1999. In August, employment growth in the service-producing sector was partly offset by widespread losses in the goods-producing sector. (See table B-1.)

Employment in manufacturing decreased by 63,000 in August, following an increase of 51,000 in July, after seasonal adjustment. The August loss would have been 7,000 larger if not for the return of workers to the shipbuilding industry following the settlement of a strike that began several months earlier. The net manufacturing job loss over the two months totaled 19,000, or 9,500 per month, after adjusting for the return of the striking workers. Over the first half of the year, manufacturing lost an average of 36,000 jobs per month. Electrical equipment had a net employment increase of 8,000 over the past 2 months, compared with losses totaling 12,000 during the first half of the year. Motor vehicles added 14,000 workers over July and August, substantially more than the 4,000 increase over the prior 6 months combined. Primary metals had a net 2-month job gain of 2,000, compared with losses totaling 12,000 during the first half of the year. In contrast, several industries continued on their trend of declining employment. The largest job losses over the past 2 months were in apparel (-16,000), industrial machinery (-11,000), aircraft (-7,000), and food (-7,000).

The construction industry lost 29,000 jobs in August. This loss nearly offset the total increase of the prior 2 months. Over the month, the largest decline was in special trades (-15,000). General building contractors lost 8,000 jobs, with residential construction accounting for most of the decrease.

Mining lost 3,000 jobs in August, following an increase of the same magnitude in July. Oil and gas extraction, which had accounted for most of the job losses in mining between February 1998 and June 1999, has added a small number of jobs over the past 2 months.

In the service-producing sector, the services industry gained 132,000 jobs in August, slightly above the average growth for the prior 12 months (121,000), but well above the increase in July (78,000). Business services accounted for about one-third of the increase. Within business services, employment in computer services grew by 15,000, its average for the first 7 months of this year; help supply services, in contrast, grew by less than its average. Employment in health services grew by 19,000 in August. Within health services, doctors' offices continued to grow, adding 5,000 jobs, and hospitals had its largest monthly employment increase so far this year (6,000). Over the month, employment was up sharply in both social services (34,000) and amusement and recreation services (17,000), after seasonal adjustment.

In August, employment in transportation and public utilities grew by 12,000, less than the average for the first 7 months of this year. August's job gain was equally divided between transportation and communications.

Employment in finance, insurance, and real estate also grew less in August (11,000) than its average for the first 7 months of the year. Most of the growth in August was in finance (8,000), with half of this increase in securities brokerages. Mortgage bankers and brokerages lost 2,000 jobs for the third consecutive month, following 4 years of growth.

Employment in retail trade changed little in August, following a substantial rise in July. Eating and drinking places lost 38,000 jobs in August, following an increase of 74,000 in the prior month. Several retail trade industries added jobs in August, including food stores (11,000) and automotive dealers (8,000). Employment in wholesale trade increased by 20,000 in August, with the majority of the growth in durable goods distribution (15,000).

Government employment rose by 47,000 in August, after seasonal adjustment, with growth concentrated in local education (25,000) and state education (13,000).

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls edged up 0.1 hour in August to 34.6 hours, seasonally adjusted. The manufacturing workweek declined by 0.2 hour to 41.7 hours, reversing July's increase; factory overtime was down 0.1 hour to 4.6 hours. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls rose by 0.1 percent to 148.5 (1982=100), seasonally adjusted. The manufacturing index fell by 0.7 percent in August to 106.4. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls increased by 2 cents in August to $13.30, seasonally adjusted. This follows gains of 6 cents and 4 cents in June and July, respectively. Over the month, average weekly earnings rose by 0.4 percent to $460.18, seasonally adjusted. Over the year, both average hourly and weekly earnings rose by 3.5 percent. (See table B-3.)