FOR DELIVERY: 9:30 A.M., E.S.T.
                            FRIDAY, MARCH 5, 1999


Advance copies of this statement are made available to the
press under lock-up conditions with the explicit
understanding that the data are embargoed until 8:30 a.m.
Eastern Standard Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

before the

Joint Economic Committee

UNITED STATES CONGRESS

Friday, March 5, 1999


Mr. Chairman and Members of the Committee:
Thank you for this opportunity to discuss the February
employment and unemployment estimates that the Bureau of
Labor Statistics released this morning.
The unemployment rate, as measured by our household
survey, was essentially unchanged at 4.4 percent in February
and has remained within the narrow range of 4.3 to 4.5
percent since last April.  Nonfarm payroll employment, as
measured by our establishment survey, rose by 275,000 in
February.  This increase was about in line with the average
of the prior 3 months, but was well above the average for
the first 10 months of 1998.  Substantial employment gains
in construction and retail trade contrasted with large job
losses in manufacturing and mining during February.  All
other major industry groups experienced moderate employment
increases.
Construction employment rose by 72,000 in February, the
result of unusually mild weather during the survey reference
week and the underlying strength of the industry.  Since
last September, construction has gained 258,000 jobs.
Employment in retail trade rose by 123,000 in February.
Layoffs in general merchandise stores, apparel stores, and
miscellaneous retail establishments were smaller than in a
typical February.  As a result, seasonally adjusted
employment levels in those industries rose.  Employment in
eating and drinking places increased by 25,000 in February.
Furniture stores and building materials and garden supply
stores continued to gain jobs in February, reflecting in
part the strength in construction and home sales.
The services industry gained 87,000 jobs in February,
compared with an average monthly increase of 110,000 over
the prior 12 months.  Business services added 40,000 jobs
over the month.  Within business services, employment in
computer and data processing services rose by 13,000; over
the past year, employment in the industry has increased by
more than 13 percent.  Engineering and management services
gained 3,000 jobs in February, compared with an average
monthly increase of 19,000 over the prior 12 months.  Health
services employment rose by 16,000 in February, boosted by
home health care agencies, which added jobs for the first
time since mid-1997.
The transportation industry gained 14,000 jobs in
February, as air transportation employment showed an
unusually large increase of 11,000.  Wholesale trade
employment rose by 9,000 over the month, and the finance
industry gained 8,000 jobs.  Real estate employment was
unchanged, following gains totaling 28,000 in the prior 3
months.
Government employment rose by 22,000 in February, with
most of the gain occurring at the local level.  Federal
employment declined by 5,000.
Manufacturing employment fell by 50,000 in February,
following smaller employment declines in the prior 2 months.
Factories have lost 337,000 jobs since March 1998.  Within
manufacturing, employment in the apparel industry declined
by 15,000 in February, continuing a long trend that has
accelerated recently.  Other large over-the-month job losses
occurred in motor vehicles (8,000), aircraft (6,000), and
fabricated metals (6,000).  Employment in industrial
machinery fell by 7,000, a substantial decline but still
smaller than in recent months.  Employment in electrical
equipment declined for the eleventh consecutive month in
February, but the loss of 2,000 jobs was the smallest since
last June.
The mining industry lost 10,000 jobs for the second
straight month in February, with most of the declines
occurring in oil and gas extraction.  Over the past year,
employment in oil and gas extraction has declined by 14
percent, reflecting low oil and gas prices.
Average hourly earnings of production or nonsupervisory
workers in the private sector rose by 1 cent in February to
$13.04.  Over the past year, average hourly earnings
increased by 3.6 percent.  The average workweek rose 0.2
hour in February to 34.7 hours.  The manufacturing workweek
was unchanged at 41.6 hours, and factory overtime fell 0.1
hour to 4.5 hours.
Turning now to our survey of households, the
unemployment rate was essentially unchanged at 4.4 percent
in February.  The rate for adult men rose from 3.4 to 3.7
percent, while the rates for adult women, teenagers, whites,
blacks, and Hispanics showed no significant changes.  The
civilian employment-population ratio--the proportion of the
population that is employed--was 64.4 percent in February,
little different from January’s record high of 64.5 percent.
In summary, nonfarm employment rose and the civilian
unemployment rate was essentially unchanged over the month.

My colleagues and I now would be glad to answer your
questions.

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