FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, AUGUST 1, 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

before the

Joint Economic Committee

UNITED STATES CONGRESS

Friday, August 1, 1997




Mr. Chairman and Members of the Committee:
	I would like to thank you for this opportunity to
comment on the employment and unemployment data that were
released this morning.
	Nonfarm payroll employment grew by 316,000 in July,
driven by strong growth in the service-producing sector.
The unemployment rate, which had risen to 5.0 percent in
June, returned to its May level of 4.8 percent.
Employment in the services industry grouping, which
accounts for about a third of the broader service-producing
sector, grew by 113,000, about in line with its average
monthly growth in the first half of 1997.  Health services
employment increased by 31,000, rebounding from an
uncharacteristically weak June.  Employment growth in
engineering and management services also was quite strong.
Computer services, which has grown rapidly for the past 3
years, continued its upward trend.
Retail trade added 65,000 jobs in July.  For the
second straight month, employment in eating and drinking
places accounted for about half of the increase.  Job
growth in food stores, which had been slow but steady
during the first half of this year, was unusually strong.
Employment growth in wholesale trade, which had slowed over
the second quarter, accelerated to 29,000 in July.
Air transportation posted a job gain of 7,000 in July.
After a strong first quarter, this industry had slumped in
the second quarter.  Employment in both trucking and
communications also rose over the month.  Public utilities
employment was about unchanged in July; since November
1991, this industry has shed nearly 100,000 jobs.  Finance,
insurance, and real estate grew by 26,000 jobs over the
month, more than twice the average monthly growth over the
prior year.
State and local education accounted for virtually the
entire 56,000 rise in government employment, on a
seasonally adjusted basis.  It should be noted that, due to
ongoing changes in the pattern of seasonal employment
swings in local education, calculating seasonally adjusted
employment estimates for this industry during the summer
months has become somewhat problematic.
In the goods-producing sector, factory employment was
flat in July, following 7 months of moderate growth.  In
durable goods manufacturing, industrial machinery,
electronic components, and transportation equipment all
continued to grow.  Gains in durables were offset by
widespread declines in nondurable goods manufacturing.
Employment in food processing fell by 8,000 and textiles
and apparel both continued long-term declines.  Printing
and publishing was down slightly after four months of
growth.
Construction employment was virtually unchanged for
the second straight month.  Gains among general contractors
were partially offset by a continued decline in heavy
construction.
Average hourly earnings of production and
nonsupervisory workers were unchanged over the month.  The
average monthly increase in hourly earnings thus far in
1997 (2.9 cents) is lower than over the twelve months of
1996 (3.8 cents).
	Turning to data from the household survey, the
unemployment rate edged down to 4.8 percent, reversing a
rise in the prior month.  Among the major demographic
groups, the unemployment rate for blacks fell to 9.4
percent.  Total civilian employment was up by 344,000 over
the month.  Since the end of 1996, it has risen by about
1.6 million.
	In summary, the labor market showed continuing
strength in July.  Payroll employment grew, with virtually
all the gains coming in the service-producing sector.  The
unemployment rate returned to its May level of 4.8 percent.

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

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