FOR DELIVERY: 9:30 A.M., E.D.T.
                            THURSDAY, JULY 3, 1997


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

Thursday, July 3, 1997





	Good morning. I am pleased to have this opportunity to
comment on the employment and unemployment data released
this morning.
	Nonfarm payroll employment grew in June and the
unemployment rate rose two-tenths of a percentage point to
5.0 percent.  Payroll employment increased by 217,000 over
the month; over the last twelve months employment growth
has averaged 212,000 per month.  Job growth in the private
sector was somewhat less than in recent months.
	The services industry added 63,000 jobs in June, well
below its average monthly gain of 116,000 through the first
five months of 1997.  Health services employment grew by
less than half the average monthly gain over the prior five
months.  Employment in help supply services was about
unchanged over the month; over the second quarter of 1997,
the industry lost 49,000 jobs, about equal to the gain over
the first quarter of the year.  In contrast, computer
services and engineering and management services both
continued strong growth trends that go back several years.
Amusement and recreation services, which had been weak
through the first part of the year, has rebounded during
the second quarter.
	In June, retail trade employment was up by 58,000
following a weak prior month.  Eating and drinking places
accounted for about half of the increase in retail trade,
with a job gain of 28,000 for the month.  Employment in
this industry was flat in May and has moved erratically
during the first half of 1997.  Miscellaneous retail stores
and food stores also exhibited strong growth in June.  Job
growth in wholesale trade has slowed in recent months.
	Elsewhere in the service-producing sector, employment
in finance rose by 11,000.  Employment growth in
transportation and public utilities has been slower during
the second quarter of the year than it had been during the
first.
	Local governments added 78,000 workers to their
payrolls in June on a seasonally adjusted basis.  Although
estimated employment changes in that sector have been
uneven since February, net employment growth has averaged
roughly the same over the past four months (about 25,000
per month) as in the first two months of this year and in
all of 1996.  Federal government employment continued its
decline that began in June of 1992 and has now totaled more
than 300,000, or 10 percent of its June 1992 level.
	In the goods-producing sector, factory employment
edged up in June.  Employment gains in manufacturing have
been slow but fairly steady since last September, totaling
87,000 over that period.  Most of the June increase was in
durable goods, especially aircraft and parts, electronic
components, and industrial machinery—all industries in
which employment has been on an upward trend.  In
nondurables, printing and publishing was the only major
industry to show any growth.  The factory workweek edged
down by a tenth of an hour after a similar decline in the
previous month.  Overtime hours also declined by one-tenth
of an hour.  Despite these declines, both measures remain
near historical peaks.
Employment in construction was virtually unchanged
over the month, although its biggest component--special
trade contractors--continued its upward trend.  This gain
was offset by a decline in heavy construction that at least
partially reflected wet weather in many areas of the
country.
	Average hourly earnings of production and
nonsupervisory workers increased by four cents in June
following an identical increase in May.  The eight-cent
rise in hourly earnings during the second quarter was
somewhat lower than the increases in each of the previous
four quarters.
	Turning to data from the household survey, the
unemployment rate rose to 5.0 percent in June, up two-
tenths of a percentage point from its May level.  Adult men
and whites were the only major demographic groups to show
significant increases in over-the-month unemployment,
reversing declines in May.  The number of persons who were
unemployed because they had lost their last job increased,
largely offsetting declines in the previous two months.
Total civilian employment was essentially unchanged over
the month; over the first half of 1997, however, it
increased by 1.2 million, and the proportion of the
working-age population that is employed remains near
historically high levels.
	In summary, payroll employment continued to grow in
June.  The unemployment rate rose by two-tenths of a
percentage point to 5.0 percent, but remained below its
year-earlier level.

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

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