FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, JUNE 4, 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 Daylight Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

Friday, June 4, 1999


Good morning.  I appreciate this opportunity to comment
on the employment and unemployment data that we released
this morning.
The unemployment rate, at 4.2 percent in May, changed
little over the month, and has been below 4.5 percent since
November 1998.  A nominal increase of 11,000 in payroll
employment in May followed a large gain of 343,000 (as
revised) in April.
Job losses occurred throughout the goods-producing
sector of the economy in May.  In mining, employment
continued to recede, with a loss of 7,000 jobs.  Since its
most recent peak in February 1998, mining has lost 75,000
jobs, and the rate of decrease has accelerated this year.
The vast majority of the job losses have been in oil and gas
extraction.
Construction employment declined by 40,000 in May (on a
seasonally adjusted basis).  Although May construction
hiring fell short of seasonal expectations, resulting in an
employment decline after seasonal adjustment, there is no
way to determine whether this decline represents a departure
from trend growth in the industry.  Recent month-to-month
employment changes in the industry have been erratic, partly
because of unusual weather patterns this past winter.  Since
last October, employment growth in construction has averaged
28,000 per month.
In manufacturing, the downward trend in employment
continued in May, as the number of factory workers fell by
45,000.  Factory job losses were widespread.  In durable
goods, notable declines occurred in industrial machinery and
in aircraft.  Among producers of nondurable goods, both
apparel and textiles continued their long-term declines.
Overall, factory job losses now total 453,000 since the most
recent peak in manufacturing employment in March 1998.
Despite the losses in employment, both the factory workweek
and factory overtime, at 41.7 hours and 4.6 hours in May,
respectively, remain relatively high by historical
standards.
Within the service-producing sector, job growth was
generally sluggish in May.  The services industry added
71,000 jobs, well below the average monthly gain of 125,000
for the prior 12 months.  Services job growth was held back
in part by employment declines (after seasonal adjustment)
in agricultural services and hotels, where there was less
seasonal hiring than usual.  A number of other services
industries less affected by seasonal hiring showed below-
trend growth in May.  For example, employment in health
services was about unchanged following several months of
strong growth, and job growth in engineering and management
services was below its recent average.  Business services
added 42,000 jobs in May, about in line with its recent
growth pace, as strong job growth continued in computer and
data processing services.
Employment in retail trade was little changed in May,
but this came on the heels of an exceptionally large
increase in April.  Although job growth in retail trade has
fluctuated from month to month thus far this year, it has
averaged 46,000 per month, compared to an average of 32,000
per month for all of 1998.  In May, there was a sizable
employment gain in eating and drinking places and average
growth among auto dealers and furniture retailers, but these
increases were offset by job losses in food stores and in
building materials and garden supplies.  Employment in
wholesale trade, which had been expanding at a fairly solid
clip since mid-1996, was little changed over the month.
Finance employment rose by 8,000 in May, somewhat less
than the average monthly gain in the industry for the prior
12 months.  Employment in transportation increased by 12,000
in May, mostly in trucking and air transportation.
Government employment was about unchanged overall.
Sizable job losses in the Federal government, reflecting a
temporary decline in the number of workers preparing for the
decennial census, were offset by an increase in local
government education.
Average hourly earnings of private production or
nonsupervisory workers increased 5 cents in May to $13.19.
Over the past year, average hourly earnings rose 3.6
percent.
I would like to note that, in accordance with standard
practice, these payroll survey figures reflect the
incorporation of our regularly scheduled annual benchmark
revisions.  Each year, we adjust our sample-based survey
estimates to full universe counts of employment, derived
principally from the administrative records of the state
unemployment insurance tax system.  There is no benchmark
source for the hours and earnings data, but these series may
be affected by the benchmark process because of changes in
the industry employment weights and the introduction of new
seasonal factors.
The impact of the revisions on employment in the March
1998 reference month is an upward adjustment of 44,000, or
less than one-tenth of one percent of the total nonfarm
employment level.  This is a smaller percent adjustment than
the average for the past decade.  Estimates for payroll
employment for the post-benchmark period, April 1998
forward, also have been revised to incorporate the new
benchmark levels as well as revised seasonal adjustment and
bias adjustment factors.
Turning now to the data from our survey of households,
as I mentioned earlier, the unemployment rate was little
changed at 4.2 percent in May.  The jobless rate has
remained under 4.5 percent since November 1998.  The jobless
rates for adult women and teenagers fell in May, but the
rates for the other major demographic groups were little
changed from April.  Civilian employment was essentially
unchanged over the month, and the employment-population
ratio held steady at 64.2 percent.
In summary, payroll employment was little changed in
May, as job losses in mining, construction, and
manufacturing were offset by modest employment gains among
most of the service-producing industries.  The unemployment
rate was little changed at 4.2 percent.

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

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