August 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 169,000 in August, and the unemploy- ment rate was little changed at 4.9 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Employment rose over the month in several industries, including construction, health care, and accommodations and food services. Manufacturing employment edged down in August.

Unemployment (Household Survey Data)

Both the number of unemployed persons and the unemployment rate were little changed in August. The unemployment rate, at 4.9 percent, has trended down by half a percentage point since February. The number of unemployed persons, 7.4 million, was down from 8.0 million in February.

In August, the unemployment rates for most major worker groups--adult men (4.3 percent), teenagers (16.5 percent), whites (4.2 percent), blacks (9.6 percent), and Hispanics or Latinos (5.8 percent)--showed little or no change. The jobless rate for adult women fell to 4.4 percent over the month. The unemployment rate for Asians was 3.6 percent, not seasonally adjusted. (See tables A-1, A-2, and A-3.)

Since February, the number of persons unemployed due to job loss has de- clined by 490,000, to 3.5 million in August. The decline in this group has accounted for most of the decrease in total unemployment over the period. (See table A-8.)

Total Employment and the Labor Force (Household Survey Data)

Total employment continued to trend up in August. The employment-popula- tion ratio was 62.9 percent; since February, the employment-population ratio has risen by 0.6 percentage point. The labor force participation rate, at 66.2 percent in August, has increased by 0.4 percentage point since early this year. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

In August, 1.6 million persons were marginally attached to the labor force, about the same as a year earlier. 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 384,000 dis- couraged workers in August, down from 534,000 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. The other 1.2 million persons marginally attached to the labor force had not searched for work for reasons such as school attendance or family responsi- bilities. (See table A-13.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm employment rose by 169,000 in August to 134.0 million, seasonally adjusted. This followed a gain of 242,000 in July (as revised). In August, there were notable employment gains in construction, health care, and accommodations and food services. (See table B-1.)

Within the goods-producing sector, construction employment rose by 25,000 in August, largely among specialty trade contractors. August's increase in construction employment was about in line with the industry's average monthly gain since March 2003. The industry has added 604,000 jobs over that period.

Manufacturing employment edged down in August, and has declined by 110,000 over the year. Motor vehicles and parts manufacturers shed 8,000 jobs in August; since May, employment has declined by 37,000. This industry has accounted for nearly half of all jobs lost in manufacturing over the year. In August, the long-term employment declines continued in textile mills and apparel. These industries have lost 46,000 jobs over the year. Mining employment continued to trend upward over the month; since its most recent low in April 2003, the industry has added 67,000 jobs. Support activities for oil and gas operations have accounted for much of the increase.

In the service-providing sector, employment in health care increased by 26,000 in August. Ambulatory health care services (which includes doctors' offices and outpatient clinics) and hospitals added 16,000 and 10,000 jobs, respectively. Food services employment continued to grow; this industry added 18,000 jobs in August and 280,000 over the year. Employment in ac- commodations edged up over the month.

Employment in financial activities continued to trend up in August (15,000), reflecting small gains in many component industries. Professional and business services employment also continued to trend upward in August (29,000). This industry has added 507,000 jobs over the year. Temporary help services employment was about unchanged in August. Job growth in this industry has slowed since last fall.

Retail trade employment was little changed in August, following a large gain of 58,000 in July. Over the year, the industry has added 224,000 jobs. Wholesale trade employment continued its upward trend in August; this indus- try has added 150,000 jobs since its most recent trough in August 2003.

Weekly Hours (Establishment Survey Data)

The average workweek for production or nonsupervisory workers on private nonfarm payrolls was unchanged at 33.7 hours in August, seasonally adjusted. The manufacturing workweek remained at 40.5 hours, and manufacturing overtime held at 4.5 hours. (See table B-2.)

The index of aggregate weekly hours of production or nonsupervisory workers on private nonfarm payrolls increased by 0.1 percent in August to 102.9 (2002=100). The manufacturing index was down by 0.1 percent over the month to 93.5. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls rose by 2 cents in August to $16.16, seasonally adjusted. Average weekly earnings increased by 0.1 percent over the month to $544.59. Over the year, both average hourly and weekly earnings grew by 2.7 percent. (See table B-3.)