March 2001 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.

Nonfarm employment fell in March, while the unemployment rate was little changed at 4.3 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. A decline in nonfarm payroll employment of 86,000 reflected losses in manufacturing, help supply services, and retail trade. Employment rose in most services industries. Average hourly earnings rose by 6 cents over the month.

Unemployment (Household Survey Data)

The number of unemployed persons, 6.1 million, and the unemployment rate, 4.3 percent, were little changed in March. The rate had been in the range of 3.9 to 4.1 percent from the fall of 1999 until the end of 2000. In March, the unemployment rate for adult men rose to 3.8 percent. The rate for blacks increased by 1.1 percentage points to 8.6 percent, but this series can be very volatile. The unemployment rates for adult women (3.6 percent), teenagers (13.8 percent), whites (3.7 percent), and Hispanics (6.3 percent) were essentially unchanged over the month. (See tables A-1 and A-2.)

Total Employment and the Labor Force (Household Survey Data)

Total employment, at 135.8 million, and the employment-population ratio, at 64.3 percent, were essentially unchanged in March. The civilian labor force was little changed at 141.9 million, and the labor force participation rate remained at 67.2 percent. (See table A-1.)

About 7.6 million persons (not seasonally adjusted) held more than one job in March. Multiple jobholders represented 5.6 percent of the employed, about the same as 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 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 was 350,000 in March, up from 257,000 a year earlier. 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)

Nonfarm payroll employment declined by 86,000 in March, seasonally adjusted. Large losses continued in manufacturing and help supply, and employment in retail trade also fell. Employment grew in a number of industries, including finance and many components of services. (See table B-1.)

In the goods-producing sector, manufacturing employment fell by 81,000 in March, following large losses in January and February. Since last June, employment losses in manufacturing have totaled 451,000, including 270,000 since December. Manufacturing employment declines were widespread in March. Large job losses continued in industrial machinery (16,000) and fabricated metals (11,000); employment in these industries has declined by 36,000 and 37,000, respectively, so far this year. Employment in electrical equipment, which had added jobs throughout most of 2000, fell by 7,000 in March; this industry has lost a total of 20,000 jobs since December. A number of other industries also experienced employment declines, including auto manufacturing and rubber and miscellaneous plastics.

Construction employment rose slightly in March, due to gains in heavy construction and special trades. Since last October, construction has added 148,000 jobs. Mining employment edged up in March. Employment in oil and gas extraction rose by 3,000 over the month; this industry has added 13,000 jobs so far this year.

In the service-producing sector, services employment was little changed in March. Job gains in health services (26,000), social services (15,000), computer services (11,000), and several other industries were largely offset by a sharp decline in help supply services (83,000). Employment in help supply, which primarily provides temporary workers to other businesses, has declined for 6 consecutive months, losing 273,000 jobs over the period.

Employment in retail trade decreased by 46,000 in March, offsetting much of the February increase. Within retail trade, employment in eating and drinking places declined by 25,000 in March, following a gain of 21,000 in February. Employment in department stores fell by 19,000, also following an increase in February. Automotive dealers and service stations lost 6,000 jobs in March. Wholesale trade employment was essentially unchanged; this industry has lost 24,000 jobs since November.

Employment in finance, insurance, and real estate rose by 17,000 in March. Since July, this industry has gained 120,000 jobs, following small losses in the first half of 2000. Mortgage banks added 3,000 jobs in March, bringing its first quarter gain to 9,000 jobs.

Transportation and public utilities employment edged up in March. In recent months, the trucking industry has resumed adding workers after showing no net growth from April to November 2000. Government employment was little changed in March, after growing by 184,000 over the prior 3 months.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls edged up by 0.1 hour in March to 34.3 hours, seasonally adjusted. The manufacturing workweek was unchanged over the month at 40.7 hours, although it was a full hour lower than a year earlier. Manu- facturing overtime edged down by 0.1 hour in March to 3.8 hours and was 0.8 hour lower than in March 2000. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls increased by 0.1 percent over the month to 151.4 (1982=100), seasonally adjusted. The manufacturing index fell by 0.5 percent to 100.9. (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 March to $14.17, seasonally adjusted. This follows a 9-cent increase (as revised) in February. Over the month, average weekly earnings increased by 0.7 percent to $486.03. Over the year, average hourly earnings rose by 4.3 percent and average weekly earnings grew by 3.7 percent. (See table B-3.)