July 2000 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.

Total nonfarm payroll employment decreased by 108,000 in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Private-sector payroll employment rose by 138,000, but this was more than offset by a decline in federal government employment, as 290,000 temporary workers hired for the decennial census completed their work. The unemployment rate, at 4.0 percent, was unchanged in July. Average hourly earnings rose by 6 cents over the month and by 3.7 percent over the year.

Unemployment (Household Survey Data)

The unemployment rate held at 4.0 percent in July, and the number of unemployed persons was essentially unchanged. The jobless rate has been in the 3.9- to 4.1-percent range since October 1999. The unemployment rate for teenagers rose in July to 13.4 percent, seasonally adjusted. Unemployment rates for the other major worker groups--adult men (3.2 percent), adult women (3.7 percent), whites (3.5 percent), blacks (7.7 percent), and Hispanics (5.6 percent)--showed little or no change over the month. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

Both the civilian labor force (140.4 million) and total employment (134.7 million) declined in July. The employment-population ratio--the proportion of the population age 16 and older with jobs--fell to 64.2 percent, the same as a year earlier, but down from its peak of 64.9 percent in April. (See table A-1.)

Approximately 7.6 million persons (not seasonally adjusted) held more than one job in July. These multiple jobholders represented 5.5 percent of total employment, compared with 5.7 percent 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 July. These people wanted and were available to work and had looked for a job sometime in the prior 12 months. They were not counted as unemployed, however, because they had not actively searched for work in the 4 weeks preceding the survey. The number of discouraged workers was 265,000 in July. Discouraged workers, a subset of the marginally attached, were not currently looking for work specifically because they believed no jobs were available for them. (See table A-10.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment declined by 108,000 to 131.5 million in July, seasonally adjusted. Private-sector employment increased by 138,000, compared with monthly growth that had averaged 182,000 over the first 6 months of the year. Over the month, the private-sector gain was more than offset by a loss in federal government employment, as 290,000 temporary jobs related to the decennial census ended. As of July, temporary Census employment was down to 190,000 from a peak of 618,000 in May. (See table B-1.)

Within the goods-producing industries, employment in manufacturing grew by 46,000 in July, after showing little growth over the first 6 months of 2000. Electronic components added 9,000 jobs over the month, continuing its recent strength. Instruments added 7,000 jobs, offsetting losses over the first half of the year. Other manufacturing industries, such as industrial machinery, furniture, and rubber and plastics, also showed employment increases over the month; these gains were largely attributable to lighter-than-normal seasonal layoffs.

Construction employment edged up in July. Thus far this year, the average monthly employment increase in this industry has been 17,000, compared with 25,000 a month in 1999. Mining employment was little changed in July.

Within the service-producing sector, retail trade employment increased by 49,000 in July, as eating and drinking places experienced strong job growth for the second consecutive month. Employment in department stores continued on a declining trend. Thus far this year, retail trade has added 32,000 jobs a month on average, about in line with the average monthly gain for 1999.

Wholesale trade added 10,000 jobs, with gains concentrated in durable goods. Monthly growth in wholesale trade employment has averaged 8,000 over the first 7 months of 2000, compared with 13,000 a month for 1999.

Transportation employment rose by 25,000 in July, with gains concentrated in trucking and local transit. The increase in trucking more than offset declines in the industry over the prior 2 months. Telephone communications employment declined in July, following a large gain in the prior month.

Employment in finance, insurance, and real estate grew for the first time since February, with nearly all of the increase concentrated in finance. Strong job growth continued in security brokerages in July. Employment in mortgage brokerages continued on its downward trend, although the losses have been smaller in recent months.

Employment in services was essentially unchanged over the month, after seasonal adjustment. Thus far this year, services employment has increased by 97,000 a month, on average, compared with 124,000 a month in 1999. In July, job gains occurred in health services, computer services, and amusements and recreation. Job losses occurred in the job training component of social services and in membership organizations. Employment also declined in personnel supply services; job growth in this industry has averaged 16,000 a month over the first 7 months of the year, roughly half the monthly average for 1999.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls edged down by 0.1 hour in July to 34.4 hours, seasonally adjusted. The manufacturing workweek was up by 0.1 hour to 41.7 hours. Manufacturing overtime was unchanged at 4.6 hours. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls was essentially unchanged at 151.3 (1982=100), seasonally adjusted. The manufacturing index increased by 0.6 percent to 107.0. (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 6 cents in July to $13.76, seasonally adjusted. Over the month, average weekly earnings edged up by 0.1 percent to $473.34. Over the year, average hourly earnings rose by 3.7 percent and average weekly earnings grew by 3.4 percent. (See table B-3.)