FOR DELIVERY: 9:30 A.M., E.D.T.
                            THURSDAY, JULY 2, 1998


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 2, 1998




	Good morning.  I am pleased to have this opportunity to
comment on the employment and unemployment data that were
released this morning.
	Nonfarm payroll employment grew moderately in June, and
the unemployment rate edged up.  At 4.5 percent, the
unemployment rate was slightly higher than in the prior two
months, but it was still quite low by recent historical
standards.
	The nonfarm job count rose by 205,000 over the month.
Private-sector employment grew by 238,000, about in line
with the average monthly increase of 242,000 over the prior
year.
	As in most recent months, job growth in June was driven
by gains in the service-producing sector of the economy.
Employment in the services industry expanded by 136,000.
Help supply services, which had been weak for several
months, rebounded in June with a gain of 32,000 jobs.
Engineering and management services added 25,000 jobs.  The
long-term growth trend in computer services continued, and
health services posted its largest employment gain so far
this year.
	Employment in finance, insurance, and real estate grew
by 30,000 over the month, continuing its long-term upward
trend.  Over the past year, employment in this industry
group has grown at a pace about 50 percent faster than the
rest of the economy, adding more than a quarter of a million
jobs.  The June employment gains were widespread.  A strong
increase in finance was led by job gains in mortgage lending
institutions and security brokerages.  Insurance continued
to grow rapidly, while real estate resumed its job growth
after having been flat in May.
	Retail trade posted its third consecutive large
employment increase in June.  Eating and drinking places,
with 21,000 net new jobs, accounted for a large share of the
53,000-job gain in retail.  Furniture stores and auto
dealers also added workers.  Steady long-term growth in
wholesale trade continued.  A decline of 33,000 jobs in
government resulted from losses at the federal, State, and
local levels.
	In the goods-producing sector, the construction
industry posted an increase of 20,000 jobs, after having
lost jobs in May.  Although month-to-month employment change
in the construction industry often is uneven and has been so
this winter and spring, the industry has added 269,000 jobs
over the past 12 months.
	Manufacturing employment fell by 29,000 in June,
continuing the weakness that has characterized this industry
for most of 1998.  Over-the-month job losses were
widespread.  A strike in fabricated metals curtailed the
availability of needed components and contributed to an
employment decline of 6,000 in the auto industry.  Most of
the announced plant shutdowns in the auto industry occurred
during or after the survey reference week, and thus did not
affect the employment estimate.  Employment in apparel
continued to fall.  Textiles, paper products, and electronic
components also had significant job losses over the month.
Printing and publishing, which showed strength in June, had
been flat for most of 1998.  At 41.8 hours, the factory
workweek was unchanged over the month.
Average hourly earnings of production and
nonsupervisory workers rose by only one cent in June,
following increases totaling 10 cents over the prior 2
months.  Since June of 1997, hourly earnings have grown by
4.1 percent.
	Turning to data from the household survey, the
unemployment rate was 4.5 percent in June, compared with 4.3
percent in April and May.  In June 1997, the unemployment
rate had stood at 5.0 percent.  All of the major demographic
groups have shared in the general improvement over the past
year.
	In summary, private-sector employment continued to grow
in June, with the largest gains coming in the service-
producing industries.  The unemployment rate edged up by
two-tenths of a percentage point to 4.5 percent.

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

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