February 2005 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 payroll employment increased by 262,000 in February and the unem- ployment rate edged up to 5.4 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Job growth occurred in both goods- producing and service-providing industries.

Unemployment (Household Survey Data)

In February, both the number of unemployed persons, 8.0 million, and the un- employment rate, 5.4 percent, returned to their December levels after dipping in January. The jobless rate had been either 5.4 or 5.5 percent during each of the last 6 months of 2004. In February, the unemployment rates for the major worker groups--adult men (4.9 percent), adult women (4.7 percent), teen- agers (17.5 percent), whites (4.6 percent), blacks (10.9 percent), and His- panics or Latinos (6.4 percent)--showed little change. The unemployment rate for Asians was 4.5 percent in February, not seasonally adjusted. (See tables A-1, A-2, and A-3.)

The number of long-term unemployed--those unemployed for 27 weeks and over-- remained at 1.6 million in February. This group accounted for 1 in 5 unem- ployed persons. (See table A-9.)

Total Employment and the Labor Force (Household Survey Data)

In February, total employment was about unchanged at 140.1 million, sea- sonally adjusted. The employment-population ratio--the proportion of the population age 16 and over with jobs--was little changed over the month at 62.3 percent. The rate has fluctuated between 62.1 and 62.5 percent for the past 2 years. In February, the civilian labor force was essentially un- changed at 148.1 million, and the participation rate held at 65.8 percent. (See table A-1.)

Over the year, the number of persons who held more than one job increased by 432,000 to 7.7 million, not seasonally adjusted. These multiple jobholders represented 5.5 percent of total employment in February, up from 5.3 percent a year earlier. (See table A-13.)

Persons Not in the Labor Force (Household Survey Data)

There were 1.7 million persons who were marginally attached to the labor force in February, little changed over the year. (Data are not seasonally ad- justed.) 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 unem- ployed, however, because they did not actively search for work in the 4 weeks preceding the survey. Among the marginally attached, there were 485,000 dis-

couraged workers in February, also about the same as a year earlier. Dis- couraged workers were not currently looking for work specifically because they believed no jobs were available for them. The other 1.2 million marginally attached had not searched for work for reasons such as school or family re- sponsibilities. (See table A-13.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment increased by 262,000 in February to 132.8 million, seasonally adjusted, following smaller gains in the prior 3 months. Construction, manufacturing, and several service-providing industries added jobs. (See table B-1.)

Construction employment rose by 30,000 in February. This followed no change in January, when unusually severe weather conditions in some areas of the country limited construction activity. Since its most recent low point in March 2003, the industry has added 458,000 jobs. Employment growth among residential specialty trade contractors (16,000) and residential builders (5,000) accounted for the bulk of February's gain.

In February, manufacturing added 20,000 jobs, with motor vehicles and parts accounting for about half of the job gain. The increase in motor vehicles em- ployment (11,000) reflected the return of auto workers from larger-than-usual temporary layoffs in January. While total manufacturing employment edged up over the year, it has shown little net change since mid-2004.

Employment in a number of service-providing industries grew over the month. Professional and business services employment expanded by 81,000 in February. Within this sector, sizable increases occurred in employment services (38,000), services to buildings and dwellings (14,000), and architectural and engineering services (7,000). Within employment services, temporary help services added 30,000 jobs in February and 207,000 jobs over the year.

Retail trade employment increased by 30,000 in February, with small gains distributed throughout this industry. Over the year, retail trade has added 135,000 jobs. Wholesale trade employment was essentially flat in February; employment in the industry has been trending upward, however, and has grown by 94,000 since its most recent low in August 2003.

Within the financial activities sector, employment growth continued in credit intermediation and related activities. The industry added 11,000 jobs in February, with commercial banks accounting for about 5,000 of the gain.

Health care employment rose by 23,000 over the month. Since February 2004, this industry has gained 262,000 jobs. Over the month, employment increased in ambulatory health care services (12,000) and in hospitals (6,000).

In the leisure and hospitality sector, food services and drinking places added 27,000 jobs in February. Over the year, leisure and hospitality employ- ment increased by 268,000, with strong gains in both food services and accom- modations.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls was unchanged in February, at 33.7 hours, seasonally adjusted. The manufacturing workweek declined by 0.2 hour to 40.5 hours, the same level as in November and December. Manufacturing overtime edged up in February to 4.6 hours. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory work- ers on private nonfarm payrolls increased by 0.2 percent in February to 101.6 (2002=100). The manufacturing index was down by 0.4 percent over the month to 93.8. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls were unchanged over the month at $15.90, seasonally adjusted. This followed a 5-cent increase in January. Average weekly earnings also were unchanged in February at $535.83. Over the year, average hourly earnings grew by 2.5 percent and average weekly earnings increased by 2.2 percent. (See table B-3.)