July 2004 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 was little changed (+32,000) in July, and the unemployment rate was essentially unchanged at 5.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Employment levels in most of the major industry sectors were little changed over the month.

Unemployment (Household Survey Data)

Both the number of unemployed persons, 8.2 million, and the unemployment rate, 5.5 percent, were essentially unchanged in July. The unemployment rate has shown little movement since December 2003. The jobless rates for the major worker groups--adult men (4.9 percent), adult women (4.9 percent), teenagers (17.6 percent), whites (4.8 percent), blacks (10.9 percent), and Hispanics or Latinos (6.8 percent)--also were little changed over the month. The unemploy- ment rate for Asians was 4.3 percent in July, not seasonally adjusted. (See tables A-1, A-2, and A-3.)

Total Employment and the Labor Force (Household Survey Data)

Total employment rose by 629,000 to 139.7 million in July, and the employ- ment population ratio--the proportion of the population age 16 and over with jobs--increased to 62.5 percent. The civilian labor force also increased over the month, rising by 577,000 to 147.9 million, and the labor force participa- tion rate rose to 66.2 percent. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

The number of persons who were marginally attached to the labor force was 1.6 million in July, the same as a year earlier. (Data are not seasonally adjusted.) These individuals 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 did not actively search for work in the 4 weeks preceding the survey. There were 504,000 discouraged workers in July, little changed from 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. The other 1.1 million marginally attached had not searched for work for reasons such as school or family responsibilities. (See table A-13.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm employment was little changed (+32,000) in July at 131.3 million. Since its recent trough in August 2003, payroll employment has risen by 1.5 million. Over the month, employment gains in health care and social assistance and in professional and business services were partly offset by job losses in financial activities. (See table B-1.)

Within the service-providing sector, employment in health care and social assistance continued to grow, with an increase of 20,000 in July. Over the year, employment in this industry has risen by 292,000. Over the month, employment rose in ambulatory health care services, such as home health care services and outpatient care centers, and in hospitals. Child day care services added 7,000 jobs in July, following a gain of 8,000 in June.

Employment continued to trend up in professional and business services in July. This industry has added 622,000 jobs since its most recent low in March 2003. Employment in temporary help services was little changed in July.

Wholesale trade employment edged up in July, as its durable goods component added 11,000 jobs. Wholesale trade has gained 65,000 jobs since October 2003, with most of the increase in durable goods distribution.

Employment in financial activities fell by 23,000 in July. The credit in- termediation industry, which includes mortgage banking, shed 16,000 jobs over the month. Securities, commodity contracts, and investments lost 4,000 jobs in July. There was little change in employment elsewhere among the service- providing industries.

In the goods-producing sector, manufacturing employment edged up (+10,000) in July. Since its most recent low in January of this year, manufacturing em- ployment has risen by 91,000, almost entirely in its durable goods component. In July, there were job gains in computer and electronic products, machinery, furniture, and paper and paper products. Employment growth in these and other manufacturing industries was partly offset by a decline of 21,000 in transpor- tation equipment manufacturing, reflecting larger-than-usual shutdowns of auto parts and assembly plants for annual retooling.

In July, construction employment was little changed for the second month in a row. The industry had added an average of 18,000 jobs per month from March 2003 through May 2004. Mining employment continued to trend up in July; the industry has added 29,000 jobs since its recent low point in April 2003.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls increased by 0.1 hour in July to 33.7 hours, seasonally adjusted. The manufacturing workweek also increased by 0.1 hour to 40.9 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 increased by 0.3 percent in July to 100.0 (2002=100). The manufacturing index rose by 0.4 percent to 95.2. (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 5 cents in July to $15.70, seasonally adjusted. Average weekly earnings increased by 0.6 percent over the month to $529.09. Over the year, average hourly earnings increased by 1.9 percent, and average weekly earnings grew by 2.3 percent. (See table B-3.)