December 2006 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 increased by 167,000 in December, and the unemployment rate was unchanged at 4.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Job gains occurred in several service- providing industries, including professional and business services, health care, and food services. Average hourly earnings rose by 8 cents, or 0.5 percent, in December.

Unemployment (Household Survey Data)

The number of unemployed persons (6.8 million) was about unchanged in December, and the unemployment rate held at 4.5 percent. Over the year, these measures declined from 7.3 million and 4.9 percent, respectively.

In December, unemployment rates for the major worker groups--adult men (4.0 percent), adult women (3.9 percent), teenagers (15.2 percent), whites (4.0 percent), blacks (8.4 percent), and Hispanics (4.9 percent)--showed little or no change. The unemployment rate for Asians was 2.4 percent not seasonally adjusted. (See tables A-1, A-2, and A-3.)

Total Employment and the Labor Force (Household Survey Data)

In December, both total employment, at 145.9 million, and the employment- population ratio, at 63.4 percent, were little changed. Over the year, total employment grew by 3.1 million and the employment-population ratio rose by 0.6 percentage point. The civilian labor force edged up in December to 152.8 million. The labor force participation rate, at 66.4 percent, was little changed over the month, but the rate was 0.4 percentage point higher than a year earlier. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

About 1.3 million persons (not seasonally adjusted) were marginally attached to the labor force in December, 337,000 fewer than a year earlier. These indi- viduals wanted and were available for work and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 274,000 discouraged workers in December, down from 451,000 a year earlier. Discouraged workers were not currently looking for work specifi- cally because they believed no jobs were available for them. The other 978,000 persons marginally attached to the labor force in December had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities. (See table A-13.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment increased by 167,000 in December to 136.2 million, following increases of 86,000 in October and 154,000 in November (as revised). Over the year, payroll employment rose by 1.8 million. In December, employment growth continued in several service-providing industries. Employment in construction was about unchanged over the month, and the number of manufac- turing jobs continued to trend downward. (See table B-1.)

Professional and business services employment continued to expand in December with a gain of 50,000. Job gains occurred in services to buildings and dwellings (13,000) and in management and technical consulting services (7,000). Employment continued to trend up in architectural and engineering services and in computer systems design and related services. Temporary help services employment was little changed over the month and over the year.

Health care added 31,000 jobs in December. Employment rose in ambulatory health care services (14,000), hospitals (11,000), and nursing and residential care facilities (7,000). Over the year, health care employment increased by 324,000, with gains spread throughout the component industries.

Job growth continued in food services and drinking places (23,000) in December. In the past 12 months, food services added 304,000 jobs, accounting for most of the over-the-year increase in leisure and hospitality employment.

In financial activities, commercial banking added 5,000 jobs in December. Employment in financial activities was up by 153,000 over the year; job gains occurred in insurance (46,000) and in credit intermediation (62,000), which includes commercial banking.

Employment in transportation and warehousing continued to trend up in December. Over the year, the industry added 106,000 jobs. Telecommunications employment was up by 6,000 in December; over the year, however, employment in the industry was es- sentially unchanged.

Employment in retail trade was little changed over the month after rising by 39,000 in November. Building and garden supply stores lost 8,000 jobs in December. Over the year, retail trade employment edged down.

In the goods-producing sector, employment in mining continued to trend up in December. Job gains in the industry averaged 4,000 per month in 2006.

Employment in construction was about unchanged in December following losses in October and November that totaled 53,000. After increasing by 295,000 in 2005, construction employment was little changed in 2006. Over the year, gains in non- residential speciality trades and in heavy construction were largely offset by a decline in residential specialty trades.

Manufacturing employment continued to trend down over the month with declines in motor vehicles and parts (-5,000), primary metals (-3,000), and textile mills (-2,000). Over the year, manufacturing employment fell by 72,000 with declines widespread throughout the component industries.

Weekly Hours (Establishment Survey Data)

The average workweek for production and nonsupervisory workers on private nonfarm payrolls remained at 33.9 hours in December. Weekly hours for factory workers were unchanged at 41.0 hours while overtime increased by 0.1 hour to 4.3 hours. (See table B-2.)

The index of aggregate weekly hours of production and nonsupervisory workers increased by 0.2 percent in December to 105.9 (2002=100). The manufacturing index fell by 0.1 percent to 95.2. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls increased by 8 cents, or 0.5 percent, in December to $17.04. Average weekly earnings also rose by 0.5 percent, to $577.66. Over the year, hourly earnings were up 4.2 percent, while weekly earnings were up 4.5 percent. (See table B-3.)

Revision of Seasonally Adjusted Household Survey Data

At the end of each calendar year, BLS routinely updates the seasonal ad- justment factors for the labor force series derived from the Current Popula- tion Survey (CPS), or household survey. This year, seasonally adjusted data for January 2002-November 2006 were subject to revision.

As shown in table B, the revisions to seasonal adjustment did not change the overall civilian unemployment rate for any month of 2006. Revised seasonally ad- justed data for other major labor force series beginning in December 2005 appear in table C.

The January 2007 issue of Employment and Earnings will contain an article describing the current seasonal adjustment methodology for the household survey data and revised data for the most recent months or quarters for all regularly published tables containing seasonally adjusted household survey data. A copy of the article is available at http://www.bls.gov/cps/cpsrs2007.pdf on the BLS Web site.

Historical data for the household series contained in the A tables of this re- lease can be accessed on the BLS Web site at http://www.bls.gov/cps/cpsatabs.htm. Revised historical seasonally adjusted monthly and quarterly data for additional series are available on the Internet at ftp://ftp.bls.gov/pub/special.requests/lf/.

HOUSEHOLD DATA HOUSEHOLD DATA

2005 2006 Employment status, sex, and age

Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

TOTAL

Men, 20 years and over

Women, 20 years and over

Both sexes, 16 to 19 years

1 The population figures are not adjusted for seasonal variation. NOTE: Seasonally adjusted data have been revised to reflect updated seasonal adjustment factors.